08-11-09 Special WS Meeting MinutesSPECIAL/WORKSHOP MEETING
August 11, 2009
A Special/Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was
called to order by Mayox Nelson S. McDuffie in the First Floor Conference Room at City Hall at
6:00 p.m., on Tuesday, August 11, 2009.
Roll call showed:
Present - Commissionex Gaxy P. Eliopoulos
Commissionex Fxed B. Fetzer
Commissioner Adam Frankel
Mayor Nelson S. McDuffie
Absent - Comzx~.issioner Mackenson Bernard
Also present were - David T. Haxden, City Manager
R. Brian Shutt, City Attorney
Chevelle D. Nubia, City Clerk
Mayox Nelson S. McDuffie called the special meeting to order and announced that it had been called
for the purpose of considexing the following Item:
SPECIAL MEETING AGENDA
1. CONTRACT AWARD/H & J CONTRACTING INCOPORATED: Approve a contract
award to H & J Contracting Incorporated in the amount of X677,121.66 for Old School Square
Pack Phase I Pxoject. Funding is available from accounts 334-4151-572-63.59 (General
Construction Fund/Improvements Other/Old School Square-Pk Improvements), 441-5161-
536-63.90 {Water and Sewex Fund/Improvements Othex/Other Lnprovements) and 448-5461-
538-63.90 (Storm Water Utility Fund/Improvements Other/Other Improvements}.
Mr. Richard Hasko, Environmental Services Director, gave an overview of Phase I of the project
to be addressed with this contract award. He stated we have worked with H & J before; and
staff has a high level of confidence in this company. Mx. Hasko stated this is a 90 day project
and staff has relayed this to H & J and they are comfortable with this timeline. This is a
complete construction contract for all of the components of Phase I which includes some
hardscape, landscaping, sodding, irrigation and underground electric as well as another set of
merry-go-rounds just south of the garage.
Mr. Eliopoulos asked if we have a contingency built into the contract. Mx. Hasko stated there is
no contingency; but there are allowances. In addition, Mr. Eliopoulos asked about the staging
area and if this timeline has been worked out with Old School Square regarding its affect on
other events. Mx. Frankel asked when the work will start if this is approved tonight. Mayor
McDuffie asked when we will need to be clear xegarding the building of the Tree.
Mr. Fetzer motioned to approve the contract award to H & J Contracting Incorporated in the
amount of $677,121.6G, seconded by Mr. Eliopoulos. Upon roll call, the Commission voted as
follows: Mr. Fetzer -Yes; Mr. Frankel Yes; Mayor McDuffie -Yes; Mr. Eliopoulos Yes; Said
motion passed 4-0.
Mayor McDuffie adjourned the Special Meeting at 6:08 p.m.
WORKSHOP AGENDA
1. Presentation on the Delray Beach Digital Divide Project
This item was removed from the agenda.
2. Direction re din the Old School S uare Gana e Retail S ace
Mr. Joseph Safford, Finance Director, introduced Steve Sanford of Greenberg Traurig, and
presented the results of their research regarding the 18 month Lease Purchase Option and its affect
on the $26.4 million bond which is currently not taxable. In addition, he discussed the Kinsloe
proposal, a Line of Credit as well as IRS regulations, and holding onto the property. Mr. Sanford
briefly discussed the possibility of having a brokerage contract to go along with the 4$ month
arrangement.
David T. Harden, City Manager, discussed the appraisal; and stated it seems better to hold onto the
property.
Mayor McDuffie asked if the property will still be considered exempt regarding taxes. He also stated
we need to look very thoroughly at the offer that is on the table.
Michael Weiner, Attorney representing Mr. 'Thomas Kinsloe, discussed their proposal and offer.
Mr. Fetzer stated it is of the utmost importance that we do not cause the bond to become taxable.
He feels this should to be worked on alot further before he is totally comfortable with it.
Mx. Eliopoulos stated he concurs with Mr. Fetzer and is not surprised that the appraisal came in low.
He stated we need to get creative regarding the possibilities of what can go into the garage space.
Mr. Frankel stated the deal seems to be a mess on both ends. He has concerns with having a
restaurant in this space; and asked if there has been any input from the Chamber of Commerce and
Old School Square.
Mayor McDuffie reiterated that we need to keep the bond non-taxable.
Mr. Rich McGloin asked if people the Community Redevelopment Agency {CRA) had spoken with
regarding their interest in the space can contact staff to discuss options.
It was the Consensus of the Commission for staff to negotiate this further and bring the item back
to Commission on either September 10, 2009 or September 15, 2009.
3. Old School Sauare Annual Report and Budget Presentation
Mr. Joe Gillie, Executive Director of Old School Square, introduced Brian Cheslack, President o£
Old School Square Board of Directors; Bob Schwartz, Finance Director; Peggy Murphy, Director of
Center Services; and Melissa Carter, Director of Marketing/Public Relations; and presented this
item. He stated he is going into his 1$`'' pear with Old School Square; and discussed the longstanding
partnership, based on mutual respect, between Old School Square and the City. Mr. Gillie stated
they constantly reinvent themselves. He explained the measurable value/benefits to the City and
partner agencies. He stated Old School Square continues to positron the City for tourism growth,
quality of life and citizen satisfaction. Old School Square generates economic impact to Downtown
Delray Beach annually, through community service, programs and discounted rates fox cultural and
ethnically diverse events/classes. Mr. Gillie discussed the track record of Old School Square and its
many contributions to the community. He discussed some of the challenges that are being faced by
Old School Square. He stated there was a 78% decrease in State grants. In addition, their 2009
revenue shortfall will be $1G0,000-$180,000 due to loss of sponsorships, donations and ticket sales.
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He discussed other resources that are being reviewed.
He thanked Bob Barcinski, Assistant City Manager for his support.
Mayor McDuffie discussed the Citizens' Survey and stated that "Availability of Arts" was listed as
the third reason why people find Delray Beach a great place to live.
Mr. Fetzer stated we have a great partnership with Old School Square. He asked Mr. Gillie the
amount of funding he received from the City last year. Mr. Gillie stated they received $205,000.
Mr. Eliopoulos stated he would like to receive a copy of Old School Square's budget. In addition,
he mentioned the window replacement projec#.
Mr. Trankel commended Mr. Gillie on his presentation and stated when he thinks of Delray Beach,
he thinks of three things: the municipal beach, Atlantic Avenue and Old School Square. He stated
he hopes we can hold the line in regards to funding for Old School Square.
Mayor McDuffie echoed comments of Commissioners and discussed the arts and funding. He
stated OId School Square is one of the jewels of Delray Beach. He thanked Old School Square for
all they do.
Mr. Eliopoulos stated this is a great example of money they raise and how they work their budget;
which is a testament to that organization.
4. Police Department Staffing and Crime Update
Chief Strianese conducted a PowerPoint presentation detailing police department staffing, the
deployment of resources and updates regarding crime. He discussed the management plan, field
interrogations, various beats, call times, workloads types and variations; as well as pros and cons
regarding deployment and scheduling. He stated they hold weekly crime meetings. Assistant Chief
Joe Milenkovic discussed the premise for the crime meetings, their effectiveness and reasons why
crime sometimes spikes during certain times of year.
Mr. Eliopoulos stated in regards to the police department budget, he wants to make sure that they
understand what maybe cut in the preparation of the budget. He asked if the Commission should
address this with the City Manager or staff for answers.
Mr. Frankel commended the Delray Beach Police Department and asked where were prescription
drug crimes in regards to the report/updates. Chief Strianese stated this is out of control and years
ago they had asked the state to assist with this issue. Assistant Chief Milenkovic stated prescription
drug critxres are not measured in numbers but in quality of life. These crimes often lead to other
crimes.
The Corxunission thanked Chief Strianese for his presentation.
5. Presentation of the proposed Utility Rate Structure Modificat~,oz~s
Mr. Hasko discussed the current and proposed water rates via PowerPoint presentation; and stated
the rates are comparing our existing commodity rates with the proposed commodity rates. He
stated it is revenue neutral with respect to the charges customers would see without the surcharge.
The South rlorida Water Management District's permanent year round restriction program will
dictate what we do and how our own surcharge ordinance will need to be changed.
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Mr. Brian Shutt, City Attorney, discussed the legal ramifications regarding the study. Mr. Harden
stated he is not satisfied with the connection fees. Mr. Hasko stated he will need more time to
review the connection fees.
Mayor McDuffie asked that something regarding the proposed water rates be placed in News for
Neighborhoods, on the website and water bills.
Mr. Fetzer stated he supports doing this in concept. He feels there has to be a lot of education
involved regarding water use, the rate structure and the conservation of water. He would like to go
forward with this.
Mr. Eliopoulos stated he supports this but needs a better grasp regarding the irrigation part.
Mr. Frankel stated if people use water or more of it, then they should pay £or it. He reiterated that
he is all for this and education is needed. However, he feels more research should be done in
regards to the connection fees. He stated our proposed rates are ixa line with neighboring
municipalities.
Mayor McDuffie stated he believes what is being done is fair. He asked if there is a benefit to
switch to reclaixxa.ed water.
The Commission thanked Mr. Hasko for the presentation.
6. Discussion regarding FY 2010 Budget
Mr. David T. Harden, City Manager, discussed the city's reserves, fees charged by the city and the
resources Boca Raton is using.
Mr. Fetzer asked if the fees charged by the city have been quantified as to what this would equate to
overall for the budget.
Mr. Eliopoulas discussed fees charged in Community Improvement and stated we could charge fees
in regards to construction. He asked why Highland Beach is charged a lesser rate in tennis fees.
Mr. Frankel stated he believes fees should be raised at least 14% since the millage is being raised.
He asked that we look to see where fee increases are appropriate.
Mr. Fetzer reiterated that he wants to keep the millage rate the same as last year but this should be
done intelligently via other alternatives. He stated he believes we are in an emergency situation and
should look at using some of the reserves.
Mx. Eliopoulos stated he is concerned that the list of cuts affects the poor. He does not want to see
Delray Beach revert back to the 1990's. He stated Commission has to understand what they will be
cutting from. the list. He mentioned furloughs and stated he does not want to see a doubling of
services.
Mr. Frankel stated Commission needs to determine what are luxuries and what are necessities.
Mr. Fetzer stated this is not the right time fox a tax increase and we should look at the employee
base to help solve the millage issue. He stated they have to come up with a reasonable approach to
this.
The City Manager stated he would like to schedule a shade meeting next week.
Mr. Eliopoulos stated he agrees with points brought up by Mr. Fetzer but does not agree with using
the reserves.
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Mr. Frankel stated he will attend the Florida League of Cities' Conference on Thursday and Friday
and there axe specific workshops related to budget. He will share any information he receives with
the Commission.
Mr. Fetzer commented that he would like to go through the list of cuts and the Budget Task Force
Report in detail.
Mayor McDuffie stated they need a workshop totally dedicated to going through the budget, etc.
Mr. Harden stated the August 25, 2009 workshop will be dedicated to budget. He in£orxn.ed the
Commission that they could set additional workshops if they so desire.
It was the consensus of the Cointnission to schedule an additional budget workshop fox Tuesday,
September 1, 2009.
Mayor McDuffie adjourned the Workshop Meeting at 9:38 p.m.
~,
City Clerk
ATTEST:
MAYOR
The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information
provided herein is the Minutes of the Special/Workshop Meeting of the City Commission held on
Tuesday, August 1I, 2009, which Minutes were formally approved and adopted by the City
Commission on August 18, 2009.
~• ~~
City Clerk
NOTE TO READER: If the Minutes you have received are not completed as indicated above,
this means they are not the official Minutes of the City Commission. They will become the official
Minutes only after review and approval, which may involve amendments, additions or deletions to
the Minutes as set forth above.
08/11/2009