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Minutes 07-21-15 BudgetPRESENT: Jerry Taylor, Mayor Joe Casello, Vice Mayor David T. Merker, Commissioner Mack McCray, Commissioner Michael M. Fitzpatrick, Commissioner CALL TO ORDER 1 MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE PROGRAM ROOM AT THE LIBRARY, 218 N. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA, ON TUESDAY, JULY 21, 2015, AT 10 A.M. Lori LaVerriere, City Manager James Cherof, City Attorney Janet M. Prainito, City Clerk Mayor Taylor called the meeting to order at 10 a.m. All of the Commission was present. Ms. LaVerriere announced Mr. Livergood would be presenting the capital improvement program. Staff was asked to project out further than five years to identify the needs in terms of infrastructure and capital improvements for the City. It is an expensive picture. There will be challenges to get the capital needs funded. The upcoming year's capital needs would be reviewed as well as an overview of the needs over the next five and 10 years. Jeff Livergood, Director of Public Works and Engineering, indicated a capital program is important for staff and for elected officials to have a growth map of what is planned for the future. The items may include maintenance projects and new endeavors. It is done to ensure funding is identified for the short term to continue the longevity of the assets. The elected officials can use the information to discuss with constituents new projects planned for the future. The FY 15/16 initiatives are funded. FY 16/17 has a number of projects that have been deferred pending decision relating to Town Square and other areas. In the current budget there are improvements in Commission Chambers and in FY 16/17 and out further, there are necessary maintenance needs for the current City Hall building. There are many projects that need to be done in and around the City Hall complex. Even the Kids' Kingdom play area is at the end of its life. Decisions need to be made about the entire Town Square project. The Commission needs to keep in mind there are considerable future expenses just to maintain the current structures. Some projects slated for 16/17 should really be done in 15/16. It would not be wise to spend money on some of the projects if other options are on the horizon. The restroom improvements and other repairs have been delayed for many years in the Civic Center. MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 Vice Mayor Casello questioned a $40,000 expense each and every year. Mr. Livergood replied it was a base amount to cover breakdowns or failures that are not anticipated. Commissioner Merker asked for the total cost of all items to maintain City Hall for the next five to 10 years. Mr. Livergood estimated in the next five to seven years approximately $2M to maintain the facility. It does not include any renovations or reconfiguring space. It was stressed that a decision had to be made whether we were staying in City Hall for the next thirty to forty years then the cost would be $15M to $18M. In that time electrical, mechanical, plumbing systems will have to be replaced. There are air conditioning issues in City Hall that are not addressed in the plan. Once there is direction on the future of City Hall, specific plans can be made. The Public Works compound will stay at its current location and be maintained. There will need to be renovations to the pistol range during 15/16. There are water intrusion problems and leaking from the roof that have to be addressed sooner rather than later. If a new police facility is planned, the pistol range project would not move forward. Vice Mayor Casello asked if other municipal pistol ranges could be shared. Chief Katz interjected it could be done. Due to the size of the agency, historically other municipalities have come to Boynton Beach. It was a state of the art range. Commissioner McCray asked if there were funds to paint the wall at Public Works and Mr. Livergood found it was projected to be done in 2018/19 for $20,000. Projects related to recreation programs or the parks improve appearances, customer satisfaction and the perception of how services are provided. Many of the projects are smaller and may be consolidated with other similar projects to develop a plan for completion and funding. There are many restroom renovations that are being tied into the accessibility elements of the Americans with Disabilities Act (ADA) to have a logical approach to the needs. Commissioner McCray inquired who was responsible for locking and unlocking the restrooms in the parks. Mr. Livergood admitted there have been issues recently. It is a combination of City staff and custodial staff. The future plans give a timeframe to discuss the goals with constituents. Vice Mayor Casello inquired about the Barrier Free Park accessibility problem. Mr. Livergood explained it was the pathways that have minor cross slope issues that have to be redone. Refurbishing the bio swale next year would then be repeated every three years. A perimeter fence in Forest Hill Park has to be maintained in 15/16 and the basketball courts are scheduled for 20/21 to be resurfaced and new poles installed. However, there is no accessible route to get to the courts. Money has to be spent to make it handicap accessible. It is the cost of doing business. 2 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 In 16/17, $30,000 was planned for an architect to renovate the lobby of the Hester Center. They are routine repairs that have to be planned and budgeted. Commissioner McCray noted the building was fairly new and questioned if it was poor workmanship or neglect. Mr. Livergood responded the building is 20 years old and the problems are not unexpected. Other Hester Center projects are the restrooms and the irrigation system fixed in 17/18 to resolve the issues. The air conditioning system is scheduled for replacement in 19/20. The unit sits on top of the gym that was not a good design decision. Playground equipment will need to be replaced by 2020 and there is a $360,000 project to make the equipment ADA accessible. The Sara Sims playground is accessible at and around the playground with the ramps to get into the area. With the park project completed, all the access will comply. There is a project in 18/19 for sealcoating a parking lot. The clubhouse room refurbishment at Intracoastal Park is scheduled for 15/16 to maintain a premier asset. There is also a kayak launch that will be grant funded. Some of the site light poles need paint that will be routine maintenance. The restroom renovations are scheduled for 17/18 because they are used heavily and there are ADA improvements planned. Next year the playground will be replaced that is at end of life. A new initiative of Recreation and Parks is to place a shade structure over the playground. Jaycee Park has a scheduled playground replacement in 22/23. Even though some projects are smaller dollar amounts, it is important to plan. There is a split -rail fence along Laurel Hills Park that is costly to maintain unless it is replaced with a different type of fence. In fiscal year 13/14 monies were budgeted for an engineering analysis of the boardwalk to be done in 14/15. The pilings in the title zone have couplings failing and within two years the pin piling will have to be replaced with a cost of $1.6M. The cost is much higher than anticipated. It will be an important decision because Mangrove Park also has restrooms and parking repairs. A decision on the future of the boardwalk has to be made. It is a difficult environment to survive. The pilings are four inch galvanized pipes that are shorter lengths designed to not disturb the mangroves. The couplers are failing. The pilings below grade are okay. Many of the braces are disintegrating and the same situation will reoccur in another 15 years. Mayor Taylor felt the boardwalk park was a great amenity. It is frequently used and it is educational with wildlife and native flora and fauna. There is a lot to see that only exists in the City of Boynton Beach without traveling. Mr. Livergood agreed as a resident, but as engineer it is a costly maintenance issue. If the funds are not available to maintain the amenities, they fail and if replacement is not done, they should be removed. The Oceanfront Park parking lot has to be seal coated and the shade sails are to be replaced next year. They are hard to maintain. The picnic shelters are scheduled for 3 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 repair next year. There is a unique design to repair them. Asphalt pathways need repair and restroom refurbishments are necessary in 16/17 and again in 21/22 for a constant scheme. The boardwalk lighting has to be redesigned in 15/16. Oyer Park parking lot has to be resealed. The shade sails are scheduled for replacement and repair in 16/17. Constant channel dredging is necessary. An expensive repair is for the fishing pier railing that is treated timber. Powder coated aluminum is being considered. In 20/21 the decking is scheduled for replacement. Palmetto Green Linear Park needs restroom refurbishment and the ADA work is planned for next year. There are also ADA requirements for a parking lot. Pence Park has become a play field rather than a ball field. The restrooms need work and accessibility is another issue that is even more expensive. Painting of the exterior will be included. Pioneer Canal Park has similar type projects. Basketball and tennis courts are scheduled for work in 17/18 with ADA accessibility needed. The boat ramp will have to be replaced further out in the future. Sara Sims changes need to be done as soon as possible, such as park furnishings; restroom renovation that is costly, accessibility is expensive and landscaping problems. Commissioner McCray suggested the male restrooms be on the back side with the female restrooms in the front for safety reasons. There is a pavilion that was damaged and is no longer useable planned to be rebuilt in 16/17. Some of it was covered by insurance. There is a request for a drinking fountain in the Park. The nine projects should be done in 15/16, but ongoing planning efforts by the CRA have to be considered because the Park is totally redesigned. The projects are deferred to 16/17 to give the CRA Board and Commission time to make the decision on the Park. The Tennis Center is scheduled for repairs in 17/18 to sealcoat the parking lot and upgrade the medians and landscaping. General clubhouse repairs are needed and remodeling in the interior. In 15/16 some accessible routes from the parking lot to the clubhouse are scheduled to be installed. Other capital projects would be the City -wide radio system. Some are fire station related, but more to support staff operations rather than direct service to the public. The only improvement at Station #1 would be a request for garage bay doors and it has been put on hold. Like everything else in City Hall, it depends on the Town Square decision. If City Hall moves there will be a new Fire Station #1 built somewhere in the area. A number of IT items have been placed into the capital improvement program. The transportation projects have been difficult due to unknowns related to the FEC crossing improvements and what the City will have to pay. The Metropolitan Planning Organization (MPO) will be paying for many of the improvements. Maintenance for existing crossings may need to be funded by the City such as the cost for crossings at 36 and Gulfstream is in the current budget. 4 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 The Model Block is budgeted for $430,000 that is a logical step because street maintenance improvements are gas tax eligible. The regular roadway program will be reinstituted in 16/17 for $600,000. New in the capital plan is $150,000 for sidewalk access ramps and it is programed for five years and perhaps beyond. The plan for future projects is the basis for budgeting staffing needs and advise the public of anticipated park and recreation programs. The projected fund balance for 16/17 is a negative $7.6M. Next year budgets will have challenges. Ultimately the running fund balance is a negative $14M. Funding capital will be difficult for the next 10 years. Commissioner McCray asked for the current budgeted amount for capital improvements and Mr. Livergood replied none. There is a fund balance in the 15/16 budget of $1.1M. Commissioner McCray understood money had been set aside and when Mr. Groff began as Director of Utilities, projects were quickly undertaken and implemented. No money has been set aside in recent years. Mr. Livergood explained for years the capital budget was funded 40% to 50% from the public service tax. It has not been possible in recent years. In two consecutive years $4.2M was taken from the capital improvement fund and transferred to the operating fund for general operations. Money was set aside, but it was taken for regular operations. It is an issue of deciding what amenities the City should offer and the source of the funding to maintain those amenities. New initiatives have not been funded knowing money was not available to maintain the current inventory. Many people would like to have new parks, a new City Hall, new Police facility and a decision has to be made on funding those endeavors. The current budget is primarily maintenance related. Mayor Taylor concluded $2.7M was budgeted for the proposed expenses and there is a fund balance of $1.1M, plus revenues of $1.6M to balance the budget. Commissioner Fitzpatrick recalled the amount of property taxes is approximately equivalent to the taxes raised 10 years ago. The main difference between then and now is pension costs were $5M then and $15M now. Pension costs have to be controlled and a plan has to be put into place for a higher level of funding so the City's contribution decreases. Commissioner Fitzpatrick was not in favor of 401K programs. Every year more money is going into pensions. It has to be addressed. Utilities Colin Groff, Director of Utilities, reported the key that drives utilities is the rates. It is an enterprise fund driven by revenue from customers who utilize the services. The rates being charged are the lowest in the County and very competitive. Utilities has a very healthy financial status. 5 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 Projected utility fees are $42.2M and capital expenditures have peaked because of building a new $30M plant. There is about $90M in revenue with the majority coming from water and sewer usage, storm water revenues is a smaller portion. The projected revenues are about $42.2M next year that has increased $2.2M over the current year. Expenditures are about $90M of which $42M is operating and the rest capital. All necessary projects are funded. There are multiple divisions led by a manager who is responsible for the financial activities within their division. There is an increase due to personnel expenses and there is an increase in cost of materials and supplies as the economy improves. The increase is approximately $1.8M or 4.65% including $330,000 in personnel. Services and supplies increased to $572,000 that reflects chemical increases and $250,000 in new equipment. An additional $1M is being transferred into R &R (Repair and Replacement) capital from last year and adding to last year's reserves $182,000 a year. The reserves are being increased each year for future appropriations. Major capital projects include finishing the new water plant for $26M. The last of the big raw water main moving water from west to east is about $4.5M. Central Seacrest Phase 2 will be started in October for a two year project budgeted at $5.5M for a total expenditure of $11M. Harbor Estates is a stormwater project and water line replacement. Commissioner McCray asked for the boundaries of Central Seacrest Phase 2 and Mr. Groff replied it runs from SW 4 and SW 6 Avenues south to Woolbright. It includes east of Woolbright between Woolbright and the railroad up to 1 1 th . The last section may become part of Phase 3 and extend the project up to Town Square. Mr. Groff indicated Phase 1 was completed six months early. If Phase 2 is pulled forward five or six months earlier than planned, money can be saved because the contractors will be more available. The design was altered from the original plans because new utilities have been installed in the interim. The plans need to be updated to accommodate changes over the last 10 years. The catch basin concept was in the plan, but will need to be reviewed. Mr. Groff explained about $5.5M is spent to replace lines, equipment and pumps out in the field to continue to provide high quality water and get rid of wastewater. It includes doing stormwater projects. The last item is updating the Master Plans, rate studies and updating GIS that have been in the budget for a couple years and are now being staffed for completion. Commissioner McCray asked about the new fire hydrant installations. Mr. Groff reported over 200 have been installed this year. About 50 a year are planned for replacement each year. There are 4,000 hydrants throughout the City. The hydrants are only replaced when they fail. Vice Mayor Casello inquired if there had been any feedback on the new hydrants. Chief Carter responded the new hydrants have been used and there have been no issues. They provide the water when needed in the 6 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 appropriate places. The old are an outdated design that causes maintenance issues and the security involved with access to the water system. Mr. Groff interjected they are easier to install and long term they secure the water system and will last longer with less maintenance cost. Commissioner McCray had seen hydrants with water dripping out and contended it was not conserving water. Mr. Groff explained all the water is accounted for in the revenue formula. It is a necessary process in installing the hydrants to clean the water. Commissioner McCray asked about the project in the INCA area. Mr. Groff indicated there had been a couple of neighborhood meetings and the response from the residents was appreciated. Design changes have been made. There would be another resident meeting and all easements have been agreed upon with the paperwork pending. In six to eight weeks it should be out to bid and started shortly thereafter. Vice Mayor Casello questioned why there have been numerous requests for water service outside the City limits. It was explained most are from areas expanded 10 years ago that did not connect at that time or connected and did not inform the City. An aggressive approach for revenue has been taken to make sure everyone using the City's water is paying for the water. In some instances the individual wells are failing and they have to connect. There is also new growth and every individual house gets its own water service agreement. An entire subdivision is done with one agreement. The requests are most generally fill -ins. All the stormwater projects were not undertaken as anticipated. There were vacancies that are now being filled that have caused delay of some projects. Six areas were identified for improvement. One is finished. NW 1 and 2 have a couple homes in a hole and the design options are being investigated. NE 20 Avenue is an area with a completed survey and working on design. Venetian/Treasure Isle neighborhood has a completed concept plan and moving into design. The minimum disruption to the neighborhood has to be considered. In the Heart of Boynton there is a big area that needs to be identified and then plans made to fix the problems. It is about $2.5M in next year's budget. The focus for next year's budget is to complete the water plant project to serve the customers for the next 50 years, complete the planned stormwater improvements, implement the integrated utility management plan to update all documentation and focus on customer service. A new supervisor has been hired in Customer Service. New job descriptions were created for Customer Service Technicians with a career path. They will get positive confirmation for doing a good job and pay them fairly. The last step is to improve billing and collection processes. There are 35,000 bills a month. Complaints have increased because of a more aggressive approach for collection. More turn offs are being done. Notice is given and there have to be many ways for people to pay their bills. Vice MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 Mayor Casello had received calls about weekend shut offs. Mr. Groff advised shut offs are usually not done on Friday unless there is a reason. After -hour turn ons are done Monday through Thursday. The bills have to be a couple of months in arrears. At least four or five notices are sent and a couple of phone calls and personal visits by the meter services employees are attempted before a shut off is done. Enhancing customer service is a major objective. As much notification as possible is given. Most individuals ignore the notices. There are instances where it could be done better. Commissioner Fitzpatrick had gotten some complaints when he first became a Commissioner and he investigated and found months and months of scamming to avoid payment. Commissioner Fitzpatrick also inquired if the utilities along North and South Roads could all be buried at this time when the infrastructure is being repaired and have the City pay the expense and amortize it over a few years to assist the residents on fixed incomes. Underground utilities would enhance property values. Mr. Groff advised the City offered to coordinate with FPL, Comcast and ATT to get those services underground. But, the water and sewer Utility funds cannot pay for it. The City offered to work through the homeowners association and there was not enough interest in the neighborhood to do it. Mr. Howard remarked there could be a special assessment for the individual properties, but it is generally only used for work the City completes. He was not sure the City should undertake a loan situation. Attorney Cherof was not aware of any procedure. Commissioner McCray wanted to see the research first on the possibilities. There are process issues in Customer Service, not people issues. Different vendors are used to support the payment methods and the current online payment system is not industry standard. Utilities is absorbing credit card fees and the possibility of charging the fee to the customer may be instituted. There are limited payment options. There is significant information about each bill that is not available to the residents. It has to be made available. The equipment to print, stuff and post the bills is expensive and the City is not efficient at the process using five employees that would be better used elsewhere for better customer service. The way to pay bills is changing globally. People are not using checks anymore and the City needs to change with the times. Late payments are made for various reasons and the City needs to provide ways for the residents to pay without being late. The goal is to make it easy for people to pay their bill when it is received. Finding someone to provide the services is being investigated. The vendor would specialize in payment processing to offer comprehensive services and expand the bill to provide more information to the customer. Data breaches are a big concern. Commissioner McCray wanted a way to get messages to the residents. Ms. LaVerriere advised it was done. Mr. Groff wanted the information expanded so it can be done less 8 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 expensively. He wanted to transfer the financial risk for a security breach to a third party, if it happens. The third parties have to be certified. The solution is to have a public /private partnership to do bill printing and mailing including inserts without additional cost. Paperless billing should be available and a third party partner would stay abreast of the technology to maximize the efforts. Paying by phone with a credit card has just been initiated. There is also the possibility of allowing payments at other storefronts that would not even involve the City and gives the customers additional locations to pay their bill at all times of the day. Many payments are made with lock box services. An RFP would be issued and the vendors would be able to pull all the information out of the existing database and make it available to the customers. Even a hotline would be provided. Payments could be made by phone, web, at the counter, mobile app, text to pay, e- billing and local convenience stores. It would eliminate many of the mistakes currently being made and provide better and more information to the customers. Vice Mayor Casello inquired if other departments could also use the technology and Mr. Groff replied absolutely. Once Utilities puts the system together, it would be very inexpensive for other departments to be added. The concept is to mail the bill, send, bill reminders before the due date and use late fee courtesy calls before a late fee is applied and /or service suspended. The current late fee is $10 a month. There will be a reduction in staff through attrition. Mr. Groff wanted to have trained individuals who answer the phone quickly and discuss the problems person -to- person and provide answers. Over time, not all the staff will be needed and vacant positions would not be filled. There will be lower bill processing costs, lower check processing costs and shift some of the credit card fees back to the customer. Currently, $200,000 a year is paid in credit card fees. The costs will be less for dealing with bad checks. Announcements of events throughout the City can be sent out with basically no cost because information is being sent about the bill. The goal would be to have the employees concentrate on the customer and not the technology. Bill averaging can be done to assist those on a fixed income. The Customer Service Representatives need to have more training. Mayor Taylor recalled that the Sewer Board usually has excess funds at the end of the year that is returned to Delray and Boynton Beach. Mr. Howard interjected the funds are returned back into Utility R &R because it is paid out of the operating fund. It is not budgeted. Mr. Groff reported changes made would eliminate most of the excess. Mayor Taylor hoped the money could be returned to the cities this year. There is a process allowing Utilities to give money to the City. Mr. Howard reported the General Fund receives a transfer from the Utility Fund on a yearly basis that has been budgeted at $5M. Ms. LaVerriere indicated any return would stay in the Utility Fund and not go to 9 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 the General Fund. Mr. Howard had discussed increasing the transfer into the General Fund. It is a process that will be reviewed during the coming year. Commissioner Merker wanted the idea of the transfer to be fully vetted. Any extra monies should be held in reserves for potential expenses. Mr. Howard indicated the amount would not fluctuate up and down. Any increase would have to be sustainable. The justification would have to be established for any amount of transfer. It can impact the bond rating. Mayor Taylor commented he was happy with the management of the Utilities Department and more projects were underway. Mr. Groff and his staff were doing a great job. Mr. Howard mentioned it was likely, during the next fiscal year, a bond issue will be presented for Utilities to cover some projects that need funding over the next couple of years. A bond was issued a few years ago and as those projects complete, the next phase will be reviewed for funding. Mr. Groff emphasized Utilities is financially extremely healthy for the bond market with a very low debt ratio to warrant an excellent rate. It is only big projects that need the bond funding and it will be paid off in 20 years. Mr. Howard recalled the Commission had approved an annual transfer to the R &R fund that had not been done. It has allowed the smaller projects to move forward quicker. Attorney Cherof interjected his research revealed the City could front the money for underground electric, telephone and cable services, but it would have to start with an agreement with those utilities. It could then be passed on as a special assessment to the property owners. Mr. Groff advised the underground facilities can be done and it will be four months before construction begins. Mayor Taylor pointed out the homeowners have to agree because the fee would be mandatory and they would have to be charged for something they may not want. Mayor Taylor called for a fifteen minute lunch break at 11:53 a.m. Solid Waste Mr. Livergood reported there were no significant changes. The bulk of the revenues are from garbage fees and roll off containers. The expenses are personnel, operating expenses, transfer to Fleet to buy equipment and a transfer to the General Fund of $4M. The operations are very profitable and stewardship is very important. Next year's budget includes $165,000 to monitor the landfill by the golf course. The monitoring requirements are being closed out. The landfill cap has to be repaired for $320,000. It has been capped for 25 years. There are 40 acres. The transfer from the golf course of $10,000 is for garbage pickup. 10 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 The City has grown and there are only 40 full -time employees and a part-time employee budgeted. In 2000 there were 61 employees. The employees work on a task base system; when the crews are done they go home. A reduced labor force and aging equipment has resulted in all routes not being completed in a given day. Social media is being used to notify the residents. New staff was not proposed in the budget. New equipment arriving this year and in 16/17 will help and the addition of three new employees in 16/17 is anticipated. It is in response to the proposed Cortina development. Mr. Livergood was very proud of his crews. Vice Mayor Casello asked why trash was collected twice a week. Mr. Livergood indicated it was standard operating procedures in Florida. Once a week collection has been considered. It would only reduce the monthly fee $1 to $1.50. There would be more fly dumping throughout the community in the new swales. This is a hot environment and storage of the garbage for a week can create a problem. The monthly fee is now $15 and there is a non -ad valorem tax that pays for the disposal. Commissioner McCray inquired how many green garbage cans are replaced a month and Mr. Livergood advised maybe 50 to 100 a month. The price is approximately $50 each. Mayor Taylor thought staff does an excellent job collecting the trash and are very responsive to complaints. Trash is collected even on holidays. Commissioner McCray remarked the problems in District II are not with the pickup of trash, rather people putting trash out all the time. There is a process in place to pick up the trash three days later and issue a warning. If done again, it will be collected three days later with an extra $50 charge on their statement. Commissioner McCray felt it might be a cultural misunderstanding. It was getting better. Mr. Livergood noted landlords and renters create a significant problem. Fleet Maintenance This is an enterprise fund. The revenues are from the operating departments. Fleet staff is responsible for repairing and purchasing vehicles. There are no significant changes in the budget. There are eight mechanics for 500 pieces of rolling stock. Commissioner Merker asked if purchasing used trucks had ever been explored. Mr. Livergood did not want to purchase someone else's problems. Commissioner Merker suggested the price point for a vehicle was the important factor if funds are short. Mr. Livergood countered that a truck normally ready for trade in could be kept as a backup vehicle. Many of the squad cars from Police are repurposed for Code Compliance, Engineering Inspectors and those who do local travel. The challenges are estimating the cost of fuel to be purchased and estimating the prefunding amount for future purchases of new vehicles. 11 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 Commissioner McCray questioned why the concept of prefunding vehicles was not carried over for capital improvement projects. Mr. Livergood advised the same approach could be used, but a lot of money would be tied up in savings. Vice Mayor Casello inquired if the mechanics are required to have specialized training to work on some of the fire equipment. Most of the ladder truck work would be sent out because it is specialized. Same is true with aerial platforms and tree pruning equipment that is done through a contract. Vice Mayor Casello questioned if there were future plans for additional garage space to avoid the mechanics having to work on asphalt in the sun. Mr. Livergood indicated awnings were budgeted, but it has been pushed out a year due to budget constraints. Long range a maintenance facility would be the best option. Relocating the Public Works facility has been discussed. The needs of the entire City have to be prioritized. It was suggested a temporary fix be pursued. It is budgeted in 16/17. Mayor Taylor suggested the vacant fire station on Congress Avenue be utilized. Mr. Livergood indicated it was not advisable to split operations. He favored consolidating all maintenance activities into one program to achieve the economy of scale and expertise. Vice Mayor Casello thought fire trucks were unique and required specialized maintenance staff. Mr. Livergood pointed out the same was true for the electronics in a squad car or solid waste vehicles. Golf Course Carisse LeJeune, Ron Tapper and Glen Landgraff made the presentation. Ms. LeJeune was pleased with the work done over the last two years to transform the Golf Course. Commissioner McCray asked what a round of golf costs and Mr. Tapper replied it depended on the day and time. The regular price is $33 for a daily fee that changes after 11 a.m. and varying prices for Club card members and permit holders. Ms. LeJeune pointed out the revenue from the General Fund was only $203,195 of the total revenue of $1,980,913. The transfer from the General Fund was reduced by eliminating some personnel costs making the budgeted figure $1,205,076. The cart and green fees revenues barely cover personnel costs. The organization was top heavy. The first assistant supervisor of maintenance position was eliminated since management are hands -on workers with the crews. There were two administrative assistants and one was eliminated by using a part-time administrative associate during peak hours and season. This would be sufficient in the office. There were also reductions through attrition. The total savings was $191,984. There are gaps in the operations and two part-time greens keepers will be needed to do the labor intensive work. One part-time pro cart/pro shop attendant could assist with the duties done by the assistant golf pro. The total savings was $139,805 resulting in a quest for a lesser transfer from the General Fund. 12 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 There are increases in areas of fertilizer, chemicals, maintenance equipment and repairs that are integral to keeping the golf course functioning. Mr. Tapper further explained there were three part-time range attendants. One retired and the other two job responsibilities were done by others. The assistant golf professionals are doing some of that work too. Vice Mayor Casello asked how many golf professionals are employed. Mr. Tapper replied there are four since one retired that would not be replaced. The four are full -time, teaching positions. It is not the industry standard. The lessons are $40 for a half hour and $70 for an hour that is paid in addition to their salary. The lessons are not given during the 40 -hour work week. Vice Mayor Casello inquired about the yearly transfer being budgeted for several future years. Mr. Tapper remarked the golf course needs reorganization. Ms. LeJeune interjected the goal is for the golf course to become self- sufficient and reap a profit and do a transfer in to the General Fund as done years ago. The supplies and equipment are needed to keep the Course to a higher level. Mr. Tapper noted there was an IT fee of $26,032 taken out of the budget and the $45,000 transfer to the General Fund. Vice Mayor Casello asked if those amounts would be forgiven every year. Ms. LaVerriere felt they would be until the Course stabilizes. Mr. Howard added the IT fee was set up when the City upgraded the computer system. It was taken out of Utilities, Golf Course and Fleet also. The transfer to the General Fund would be forgiven until they begin to show a profit. The basis for $12,000 for the snack bar rental was based on the current expenses. The restaurant is going out for bids soon. Right now the status of the clubhouse is unsure. The aesthetics have been improved dramatically. The decking is gone for safety reasons. The majestic oak trees are not slated for removal. Ms. LeJeune explained the intent was to save the trees if possible by installing root barriers where possible. Many of the tress are intruding into and underneath the foundation. The monies requested from the City will not be used on the clubhouse. The chemical and fertilizer budgets have increased and repair parts have gone up in addition to $50,000 of equipment. Ms. LeJeune mentioned the City Manager was given every single need of every department with the understanding that not everything would be funded. Logical decisions had to be made based on need. There is an equipment list with the condition of each item. Vice Mayor Casello remained concerned more money was needed to work the Course itself. Four assistant golf professionals may not be sustainable. The $12,000 for the concession seem speculative. Ms. LeJeune replied the market was a factor. It would recoup the expenditures and show a profit. The vendor would be using the City's facilities and equipment to make a profit that should be shared with the City. The price may need to be negotiated. Vice Mayor Casello speculated the location of the Links may impact the success of the concessions. It was expressed the first goal was to cater 13 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 to the golfers. The clientele wanted fresh food, restaurant type fare for breakfast and lunch. There is no intention of serving dinners. Commissioner Merker noted the Advisory Board only meets once a year. Ms. LeJeune recalled the Board was established to meet on an as needed basis when decisions are needed based on discussion. There is not enough day -to -day business decisions that would need board input monthly. Commissioner Merker contended the Board members may have ideas on how to raise money that should be considered. Ms. LeJeune stressed the board members can contact Mr. Tapper at any time with ideas or for discussion on issues that may arise. If a vote is needed for a change, the Board would be convened. The establishing ordinance could be reviewed. Mayor Taylor remembered the Golf Course being very successful by operating out of its reserve fund. In order to maintain some aspects, the maintenance was ignored. The equipment got old and it was not replaced. Maintenance on some of the equipment is a daily chore. It should be understood that nationally participation with golf has dropped off. Cost has been a factor and available time. Both factors are being experienced by all golf courses and it affects revenue. Clarification was sought on the duties of the assistant golf professionals. Mr. Tapper responded they work behind the counter, work outside, whatever assists the golfers. The average salary is about $30,000. Mayor Taylor felt there should be a golf pro, but other individuals could work the counter and help the golfers. Mr. Tapper clarified one pro had retired and was being replaced by part-time workers. Mr. Tapper stressed the Golf Course has increased revenue by 5.5 %. Mayor Taylor agreed there have been tremendous improvements and the Course looks great. Commissioner McCray hoped the improvements would continue and the transfer from the General Fund can be eliminated. Vice Mayor Casello continued to feel the Golf Course is one of the greatest amenities of the City along with the beach and marina. He was very supportive, but realized hard decisions had to be made. Commissioner Fitzpatrick believed the Course should be self - supporting. It is a long- standing program and he agreed with the transfer this year and next, but the third year another approach should be considered. Ms. LaVerriere pointed out there was a five and 10 -year capital program for the Golf Course to cover future improvements. Mr. Livergood surmised the clubhouse has significant need with $2M appropriated for 17/18. An architect is proposed for 16/17 to do a preliminary scope. The existing building has significant problems. The cart garage needs to be replaced as does the electrical, screening and bag drop off. The cart paths need some improvement and the parking lots have to be seal coated. The restrooms have to be replaced in 19/20 and ADA compliance is required. A pavilion has rotten timber that needs extensive work. The maintenance building requires inside improvement. The Golf Course entry road will need to be micro surfaced in 22/23. 14 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL Commissioner McCray did not understand why the ADA was passed in 1990 and yet the improvements are being done currently. There was an update to the law in 2010. He suggested the improvements to many of the facilities should have been done during construction. Many of the requirements have been changed resulting in original provisions becoming non - compliant. Mr. Livergood emphasized many of the improvements are not significant. Commissioner Fitzpatrick understood the Course is leased from the County and improvements are planned for $2M. Mr. Tapper responded the Course is 140 acres, 27 holes, leased for 100 years and renewable for 100 more years. If the Course fails, the land is turned back over to the County. People come to the facility to play golf not the amenities offered. Commissioner Fitzpatrick noted with a 100 -year lease a building would only last 50 years at the most. Self- Insurance JULY 21, 2015 Julie Oldbury, Director of Human Resources and Risk Management, reported development of an enterprise risk management program was the primary goal to consider the City as a whole. A risk steering committee was organized to assist with the program. It was hoped cost containment would be possible. Because the City is self- insured, the limits increased and there had been a cap on how much the City would pay out of pocket. It has been enhanced from $100,000 to $200,000 in the General Liability Fund. For every claim, the City has the potential of paying an additional $100,000 for each claim. On the Workers' Compensation side there was a $200,000 level for General Employees and $350,000 for public safety. They increased to $300,000 for General Employees and $850,000 for public safety. Before any excess carriers pay any claims, the City pays more. Commissioner McCray wanted an explanation of investment income. Ms. Oldbury explained it was an insurance reserve. Mr. Howard added Risk Management is a separate fund so the cash gets a portion of the investment earnings per month. It is an estimate. Miscellaneous income covers the money recouped from other insured sources. The interfund service charges get allocated to all the departments City -wide. Commissioner Merker asked about the flexibility of the plan to increase or decrease the out -of- pocket expense. Ms. Oldbury advised limits have been set by statute and insurance is purchased to cover those amounts. Each year the policies are reviewed for re- insurance levels and the market for lower re- insurance levels are compared. There is less flexibility on the workers' compensation coverage. 15 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL Warehouse Traffic Fund Local Option Gas Tax Community Improvement Fund 16 JULY 21, 2015 Commissioner McCray wondered if the monthly safety awards were still given. Ms. Oldbury advised the monthly awards have not been done, but would begin again with the new fiscal year. Vice Mayor Casello asked why there was an increase in the self- insured losses. It was partially due to the limits on the insurance increased and Ms. Oldbury's understanding of the existing claims. Mr. Howard reported the Warehouse falls under Finance. There will be no additional personnel. There are currently four employees who buy products, store supplies and issue those to the departments. It runs very well and the yearly amount increases $17,000 due to health insurance, pension and an additional vehicle. The warehouse is located in the Public Works compound area. Mr. Howard had not changed the figures pending discussions between now and final adoption of the budget. There are ongoing discussions with ATS (American Traffic Solutions). If adjustments need to be done, they will be submitted before final adoption. A monthly fee is being paid without any revenue. There is some trickle down revenue and it is all part of the ongoing discussions. Mr. Howard reported it is revenue received from the State of Florida based on the tax per gallon of gasoline and then remitted back and split between counties and cities. Part will be used for road improvements and sidewalks that is transferred to the capital improvement funds. It was anticipated to have revenue of $1.2M next year. A balance of $300,000 was available from previous years not yet transferred. Mr. Howard recommended the monies be transferred. $815,000 goes to the General Fund as a yearly transfer. Andrew Mack, Interim Director of Development, noted the fund has no changes this year. There is a slight decrease of 2.2 %. Mr. Howard pointed out the funding comes from the amount allowed for administrative costs of the CDBG (Community Development Block Grant) and any SHIP funding. There are some previous home improvement liens and satisfaction of liens that add to the funds. The expenses are the salary for the Community Improvement Manager and a Project Manager. The revenues are the administrative part to run the programs. There is an application process for the distribution of the grant monies. MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL Pubic Art JULY 21, 2015 Debby Coles - Dobay, Public Art Manager, offered the budget was status quo. There was a fluctuation resulting from the biannually held Kinetic Art Symposium. The fund manages the programs for public art throughout the City. There is $600,000 for the upcoming year. Strategic planning is being done to allocate funds for maintenance of some of the public art. Commissioner Merker expressed his enjoyment with the Kinetic Art event. He did feel the owners or renters on East Ocean Avenue should have input and consent to the art objects being put near their businesses. He strongly felt the businesses should be consulted. Art appreciation was irrelevant. Ms. Coles -Dobay agreed with the safety aspect. It is a priority with siting public art. Recreation Program Fund Wally Majors, Director of Recreation and Parks, explained this fund captures the monies collected from developers constructing any type of residential construction in the City. The fees should be expended in the area of which it is collected. If no improvements are needed, the funds can be used at other parks that are designed to have a more regional service area. Funds have been allocated to install some shade covers at Intracoastal Park and at Jaycee Park. The money can only be used for development, purchase or improvement of parks. Commissioner Fitzpatrick had pointed out the Utility Department took property from Pence Park and there should be an interagency transfer from Utilities into the fund to compensate to keep the amount of park land the City currently has or improve it. Program Revenue Fund Mr. Majors offered the fund was created in 1992 so all program fees should be placed into a separate fund to ensure the programs are self- supporting. The fund also allows for a $100,000 contribution back to the General Fund annually and funds the Youth Empowerment Center at the Sims Center, FunFare Magazine and subsidizes many programs that are offered to the community free of charge. It is helpful and provides a very necessary service allowing the fees to remain affordable for all. Commissioner McCray asked if the summer programs were self- sufficient. Mr. Majors replied the fees cover the direct expenses including the cost of instructors, supplies or equipment. Debt Service Fund This fund records the utility tax revenues from Florida Power and Light, Florida Public Utilities, Communication tax and the utility tax on the water bill. It also is where the debt 17 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 service payment is made. The refinancing allowed the debt service payment and interest to decrease for the upcoming year. The $6.2M is then transferred to the General Fund covering the remainder of the revenue. A portion also goes to capital improvement to provide a regular funding source for the capital improvement fund. Cemetery Fund Mr. Livergood noted there is $15,000 budgeted to replat the cemetery for additional burial sites. This completed the fund presentations. Mayor Taylor asked how many open positions there were City -wide. Ms. LaVerriere offered there were positions open and not being filled. Ms. Oldbury advised there were 23 positions. Mayor Taylor wanted to combine the monies for salaries for those positions; averaging $45,000 each would total approximately $950,000. There would be a 30% charge for benefits to increase the amount to $1.2M. Mayor Taylor stressed had those positions been filled it would have added the amount to the overall budget. Some will have to be filled. Vice Mayor Casello asked if the 23 positions were still funded and Ms. LaVerriere advised they were funded. Many are part of the Police Department reorganization and utility employees. Mayor Taylor opened the floor for public comment. Herb Suss, a citizen and taxpayer felt no one had the right to speak to somebody as a Commissioner had done. Decorum and respect are important. Mr. Suss suggested the millage rate be increased to 8 mills to collect more money. Infrastructure is very important. Times are good and the economy is rolling. The City could assess all residents for capital improvements and infrastructure. He reiterated the millage rate should be 8 mills with any assessments needed. He urged the Commission to take into consideration that interest rates on bonds are low. Climate change will have an impact and more flooding will occur. The Commission is doing a good job. More grants should be sought by the lobbyist. Charles Kanter, a Parkside resident, recalled the development was named because it was beside a park owned by the City. The Board should have taken enough money from the fees paid to build the park. After all of the activity done to get the park developed, including a major meeting with United Way, the park is not even in the budget. The Recreation and Park Advisory Board voted the park the number one priority. There are many residents ready and willing to be adopt -a -park volunteers. He urged the Commission to get the park underway. There are several developments in the area and there is no park at all. The residents are ready and willing to help. Eugene Gerlica, District Engineer for Quantum Park Overlay Dependent District, advised the Overlay District has spent the money to hire a park planner who produced 18 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL the master plan for the Thomas A. McGillicutty Park on the preserve. It is a 60 -acre park of which the 18 acres of the City park land is inclusive. A report was prepared indicating the total construction cost and maintenance cost were included. The City's capital improvement budget goes out 10 years. It was requested that the Quantum Park Eco Park gets on the capital improvement plan. No money was requested to be spent by the City in the next fiscal year. The District wanted to work with the City staff to phase in the total cost over years. It would start with removal of some exotics and improve the entrance way and open things up. The Overlay District has some money to spend this year to improve the preserve area and potentially get that open to the public. There is an RFQ to be received next week for a landscape architect. He asked that Quantum Park be listed and the line items to identify the cost responsible by the City be programed into the budget over the next 10 years to be used by everyone. Vice Mayor Casello had been to an Overlay District meeting and there were plans discussed that are still in progress that addressed the entrances and exits. Mr. Gerlica advised surveys have since been done to develop alternatives for parking and bathroom issues. Commissioner Fitzpatrick disagreed with the name of the Park. JULY 21, 2015 Commissioner McCray wanted to know the total amount of grants applied for next year and Debbie Majors, Grants Coordinator advised the departments were anticipating 15 grant applications totaling $2,473,767. A copy of the list would be provided to the Commission. Some grants are more competitive than others. Some are large grants while others are small program type grants. Capital grants are not sought because the capital fund is primarily maintenance. She cautioned that some grants require a match of funding from the City. Mr. Howard advised the two actions for the Commission were to adopt a preliminary fire rate resolution and it is recommended to remain at $100 per residential dwelling unit and per square footage for commercial and nursing home categories and to adopt a proposed millage rate. The proposed budget uses the rate of 7.9 mills. Commissioner Merker agreed to keep the fire assessment as it is and Vice Mayor Casello seconded the motion. Commissioner Fitzpatrick was disappointed the Commission wants to give a sweetheart deal to the Village of Golf that could have reduced the rate $5 a person next year. Commissioner Merker agreed there should have been more negotiations with the Village of Golf. The motion passed unanimously. 19 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 Mr. Howard reminded the Commission they were setting a proposed millage rate. The final millage rate is adopted in September and by statute, whatever millage rate is proposed, can be increased in September but it requires a first class mailing to every resident in the City. It can be lowered in September with no problem. It should be a millage rate that the Commission is comfortable with and it can be decreased in September. Mayor Taylor pointed out the budget started out being $1.5M short. The City Manager and Finance Director have done a great job without going to reserve. There is a $450,000 shortfall and it is hoped this year's budget would come in under that amount to bring the balance forward and zero out the shortfall. The Commission has raised the millage rate on the taxpayers three years in a row and a tremendous message could be sent to the taxpayers by taking $370,000 out of the reserve fund and reduce the rate to 7.8 mills to help all the residents. Vice Mayor Casello asked if the $450,000 shortage could be found in the budget. Ms. LaVerriere advised the shortage would be the appropriated fund balance. The money will be taken out of the fund balance and by the end of next fiscal year hopefully would come in under budget. All the budgeted items would be included. If the rate is lowered to 7.8 mills, instead of appropriating $450,000 of the fund balance, the budget document would show appropriating $820,000 with the goal of coming in $450,000 less. Vice Mayor Casello was skeptical. Commissioner Merker argued the idea was beyond his comprehension. It was a political statement to play games with the citizens. The status quo is the current situation. There still is not funds for important improvements and equipment. Realistically it should be kept the way it is because we are not having the surplus that we need. There was an issue with the Police this year. Next year was uncertain and there needs to be a plan for improvement. The proposed rate is a gamble with a projection that is make believe. Taking a chance is an absurd statement. Commissioner Merker was totally against lowering the millage rate. Mr. Howard stressed the emergency reserve would stay intact at $7.7M. The City is about $4M above the reserve. Commissioner McCray recalled the Mayor had pointed out with the unfilled position $1.2M was being saved. He favored staying at the 7.9 millage rate with possibly going down to 7.8 mills in September. Commissioner Fitzpatrick was in agreement with Commissioner Merker. If the object is to do something for the citizens, it should be by reducing pension costs. It is on 20 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL JULY 21, 2015 projection to continue to rise the next year. Every year pension reform is delayed the cost increases. Waiting until the elections are over is not working on pension reform. Mayor Taylor stressed pension reform cannot be done quickly. It has to be negotiated with the unions and experts have to be consulted. He agreed it has to be addressed. Commissioner Merker agreed talk was cheap. Lowering taxes with a major issue of pension reform pending is a dream. It could be a nightmare. Ms. LaVerriere commented the majority of vacancies existing involve two of the larger departments, Police and Utilities. If positions were frozen at this time it would be devastating to the Police Department and its service levels. The Utility vacancies need to be filled to fulfill the goals of Mr. Groff. She was not sure if it was being suggested that the vacancies not be filled. Mayor Taylor and Commissioner McCray advised they were not advocating the positions not be filled. Mayor Taylor noted while the positions are being filled, dollars are being saved. Commissioner McCray offered a motion to keep the millage rate at 7.9 mills. Commissioner Merker seconded the motion. Mayor Taylor did not have a problem keeping the rate at 7.9, but he would be voting to lower the rate to 7.8 mills in September. Vice Mayor Casello wanted to wait to September to have a better picture and it is much easier to lower than raise the rate. He agreed to keep it at 7.9 now and revisit it in September. The motion passed unanimously. Attorney Cherof noted it was the adoption of Resolution No. 15 -080 and he announced the millage rate of 7.9 for the fiscal year will have a rollback rate of 7.3762. The first public hearing will be September the 3 2015 at 6:30 p.m. in Chambers. Ms. LaVerriere noted there is no new park development in the capital program and the City was struggling to maintain the existing parks. She advised Mr. Majors should have a discussion with the Recreation and Parks Board on their priority listing and report to the Commission in September. The desire for future years can be included. It has to be viewed as a whole of the entire parks system. All the parks renovations and improvements could be included in the capital budget and it can be addressed each year. Commissioner McCray thanked staff for making the hard decisions and he appreciated their efforts. If the money is there, and not needed, please, do not spend it. He commended the City Manager and Finance Director for a job well done. 21 MEETING MINUTES SPECIAL CITY COMMISSION MEETING BOYNTON BEACH, FL There being nothing further to come before the Commission, Mayor Taylor properly adjourned the meeting at 2:38 p.m. ATTEST: City Clerk M. Prainito, MMC 4 OZEā–  ith A. Pyle, CM eputy City Clerk CITY OF BOYNTON BEACH Jerry Taylor Mayor JULY 21, 2015 cCray, Comm 22 ello, Vice Mayor loner Michael M. Fitzpatrick, Co ission r