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08-13-13 Workshop Meeting MinutesWORKSHOP MEETING August 13, 2013 A Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Cary Glickstein in the Commission Chambers at City Hall at 6:00 p.m., on Tuesday, August 13, 2013. Roll call showed: Present - Commissioner Shelly Petrolia Commissioner Alson Jacquet Commissioner Adam Frankel Commissioner Angeleta E. Gray Mayor Cary Glickstein Also present were - Louie Chapman, Jr., City Manager Brian Shutt, City Attorney Chevelle D. Nubin, City Clerk Mayor Glickstein called the Workshop meeting to order and announced that it had been called for the purpose of considering the following Items. WORKSHOP MEETING AGENDA Commission discussed allowing public comment on Item #4, Discussion of the Proposed Budget for FY 13/14. It was the consensus of the Commission that public comment would be allowed on this particular item. Public Comments: None. Mayor Glickstein then closed public comments as there were no speakers. 1. Delray Beach Centex for the Arts at Old School Square Annual Report and Funding Request Presentation Mr. Joe Gillie, President and CEO of Old School Square (OSS), thanked the Commission for having them tonight and introduced, Frances F. Bourque, Founder of OSS, Bryan DeFrances, Chairman of the Board of Directors, Laurian McKenzie, Treasurer, Patty Jones, Secretary and Board Members Bob Currie, Bob Bourque and Bill Morris. He also introduced staff members Craig Frustaci, Managing Director and Brian Ridolfo, Assistant Artistic Director. In addition, he thanked Assistant City Manager Mr. Robert Barcinski, the City's Liaison to Old School Square. He discussed Old School Square's successes for the year, rebranding of Old School Square to Delray Beach Center for the Arts, enhancement to the facilities, the financial challenges as well as new challenges. He spoke regarding the Art Cinema at the Crest Theatre and the new programs, partnerships, financial stability, funding request, Delray Beach Center for the Arts at Old School Square Strategic Plan and its mission and vision. Mr. Gillie invited everyone to the outdoor concert that will take place on Friday, October 11, 2013. Mr. Frankel stated the list of community partners have been growing every year. He appreciates that Mr. Gillie thinks outside the box and is including new programs for younger people. Mr. Frankel stated he always love the programing and presentation, and thanked Mr. Gillie, his staff and the Board of Directors. Mrs. Gray asked what percentage of the budget is programming and if the arts program can be incorporated with the City's summer and afterschool programs so the children can experience theater and performing arts. Mrs. Petrolia stated Mr. Gillie is doing a fine job and love the idea of some of the things that are on the master plan. She appreciates the presentation, like the direction he is going, especially with regards to the younger group and how the tickets are being sold. She thanked Mr. Gillie for the presentation. Mr. Jacquet asked if there was a change in the funding request. He also asked how does the relationship works between the Center for the Arts and the partners. He thanked Mt. Gillie, his staff and the Board of Directors for the presentation. Mayor Glickstein stated it is an honor to have Mrs. Bourque here tonight. He asked Mx. Gillie if he was able to apply any critical analysis to see if it is worth it to rebtand OSS. In regards to sponsorship dollars, Mayor Glickstein suggested that they be aware of competing spheres between civic groups and the spheres interaction when it comes to cultural arts in order to eliminate redundancy. 2. Downtown Development Authority (DDA) Annual Report Marjorie Ferrer, Executive Director of the Downtown Development Authority introduced her staff, Laura Simon, Associate Director, Gail Lee McDermott and board members David Cook, Treasurer and Diane Franco. Mrs. Ferrer presented a PowerPoint presentation of the Downtown Development Authority Annual Report. She discussed the DDA's history, mission, goals, marketing campaign and successes, the impact of digital and social explosions, additional marketing programs. The DDA continues to support the Delray Beach Marketing Corporative (DBMC) including the Christmas tree and First Night events and all of DBMC events are included in their guidebook. In addition, she discussed the economic development, the downtown cluster updates, security and crime, clean and safe, and traffic, parking and noise. She stated that they will be focusing on eight major events. Mrs. Ferrer thanked the Commissioners for their support, it has been a great year and look forward to next. Mr. Jacquet asked about the budget, the millage rate and private contributions. He asked how the relationship between the DDA and DMC wor s in attracting Canadians and other people to come to Delray Beach. He thanked Mrs. Ferrer and her staff for their hard work. Mrs. Petrolia asked about the DDA budget and the in -kind, the visitors welcome center and if the DBMC branched off of the DDA. How is the DDA marketing specific to a certain area and DBMC marketing is more generalized. Mrs. Gray thanked Mrs. Ferrer for her presentation. She asked about the tax revenues received from the 1 millage rate. She asked if the DDA can incorporate diversity in the advertisements and possibly have a future event so that everyone that the DDA is advertising will feel that they are a part of the advertisement. In addition, she asked about advertising on different radio 2 August 13, 2013 stations that would attract merchants /clients that would patronize the businesses. Mayor Glickstein stated that he did not see much diversity in the advertisements. Mr. Frankel stated that he received an email from Bruce Giminy and Mr. Gimmy pays the DDA one mil, $159.00. As a board member of the Palm Beach County Tourist Development Council ( PBCTD), they always look at what events are in Delray and what the DDA and DBMC is doing as well. The PBCTD always highlights the City of Delray Beach and it is a great complement to DDA and DBMC. Mr. Jacquet asked about cluster five. He is concerned that there are a number of businesses in cluster five and that they ate paying the 1 mil rate but they have not yet seen the benefit of their one mil as far as events going on in that area or businesses being promoted. He has seen businesses throughout the downtown core from east to west that have been listed and promoted, but cannot say that he has seen many within cluster five. He would like to see the DDA partner with the businesses in cluster five. Mayor Glickstein stated that he would like to see real -time feedback in terms of all of the property owners and if they see the DDA as value added. He stated that it would be nice to have a question added to a survey that would allow the property owners to give feedback regarding the additional tax, is the tax is worth it. In regards to the Howard Alan Art Shows, he asked about the statement "100,000's of new and high end customers to downtown" and how is it being measured. In addition, he asked why the Howard Alan event cannot be moved off Atlantic Avenue into the Pineapple Grove area or in other areas such as Osceola Park or West Atlantic Avenue. He thanked Ms. Ferrer for doing a great job. 3. Delray Beach Marketing Cooperative (DBMC) Annual Report Ms. Stephanie Immelman, Executive Director of the Delray Beach Marketing Cooperative (DBMC), thanked Commission for having them there tonight with the DDA. She discussed the DBMC partnerships, its mission statement, and accomplishments through Destination Marketing, Marketing Programs, Special Events and Community Collaboration. They are designed to market all of Delray Beach and the boundaries are from Boca Raton to Boynton Beach. In addition, she provided an overview of 100 feet Christmas tree, First Night and the July 4�' events, the economic impacts, sponsorships, broker in -kind services, media coverage and programing. This year DBMC will be focusing on family- friendly events. The Delray Beach Signature Event "On the Ave ", marketing program goals and results, Facebook analytics, marketing impressions, community affiliations and collaborations. Ms. Immelman reviewed their financial stability goals and results, support of DBMC partners, awards and the total return on investments. She also discussed DBMC's vision, marketing programs and communications. She showed Commission the "Visit Florida" video. Mr. Frankel stated the video was amazing. He asked how much time and money is being invested in Morikatri Museum since it is not in the City limits and with a cost benefit analysis if selling the First Night buttons is worth it. Mrs. Gray asked if they are still being funded for the "On the Avenue" event since the number of events was decreased. Mrs. Petrolia stated that the love she idea of linking between the DBMC, DDA, and the Delray Beach Chamber of Commerce for the events. In addition, she inquired about DBMC's website and their ability to provide someone with pertinent information. She asked if Waste 3 August 13, 2013 Management participated in sponsorship. It was a great idea to go off the Avenue and DBMC pioneered in to the area. She commended Ms. Immelman and her staff for a job well done. Mr. racquet thanked Ms. Immelman and her staff marketing Delray Beach. He stated that going off the Avenue is brilliant, forward thinking and courageous and he applauded them. He asked what percentage of their budget goes to administration. Mayor Glickstein echo the remarks made by Commission. He stated that the organization mirrors a start up in the sense that it has a more entrepreneurial attitude which is beneficial. More racial diversity would be appreciated and wanted. He would like for the DBMC to come back before Commission a year from now to demonstrate how it promoted the City as a sports designation. He thanked Ms. Immelman and her staff. Mrs. Petrolia asked if there is any possibility in being able to get some help from the county. 4. Discussion of the Proposed Budget for EY 13114 Mr. David Boyd, Finance Director presented an overview of the proposed budget for FY 2013/2014. He stated that the intention was to discuss and summarize the budget where the city is now. As far as the 2014 budget is concern, the one thing that drives the budget is the taxable property value. The trend in the property value has been either declining or stagnate over the past eight years. It has only been on the rise in the current year, that the taxable property value has equaled what it was in 2006. He explained that the reason the taxable property and the millage rate is so important to the budget discussion is because 50% of the general fund revenues tonnes from the property taxes. The property taxes are the greatest portion of the revenue source for the general fund. The three factors that affects the property tax revenue are 1) the taxable value decreased in 2006 - 2013, 2) the millage rate declined from 2006 -2013, and 3) inflation impacted the revenues that was received. Even with the declining revenues over the past years, there has been no significant reduction in services. Two large impacts that do not get discussed a great deal are capital investments which are not being invested back into the infrastructure of the City from the general fund. This year we are proposing a $500,000 dollar capital investment out of a one hundred million dollar budget year or a half percent investment back into the capital infrastructure. In regards to employee compensation, the employees have not had any raises for the past five years up until this current year. The employee received a three percent raise, so the same inflationary forces that have impacted the City's revenue have also impacted the employees' income. In addition, for FY 2014, 1.6 million dollars annually required contributions have to be added to the Police and Fire Pension plan. The funding of the Police and Fire pension plan will be going from 8.1 to 9.7 million dollars, which is ten percent of the total budget and will have a big impact next year. Mr. Boyd stated that if the City continues to offer the same level of services in FY 2014, then a proposed-- miilage- rate -is - needed. If- there -is -no- proposed millage -rate -acrd- the -City- keeps - same level of services then some additional other source of revenue will be needed. If not, the City needs to compromise on what the service levels will be for FY 2014. He asked what type of revenue the City is going generate and what type of service level does the City want for FY 2014. Mr. Boyd continued with the presentation of the Proposed Budget for FY 2014. City Manager Louie Chapman stated the budget is considerably more honest then seen in the past budgets. The frozen positions have been removed from the budget. If a position has been frozen in the budget for 3, 4 or 5 years it is not going to come back and it is offering the department false hope. He explained that he and the Finance Director have not been able in his 4 August 13, 2013 four months' time, look at the performance of the various departments in terms of what the staff levels are. This organization has never really gone through what is termed a "right- sizing" exercise to look at the match -up between the services that are being provided and staffing to see if the two match -up right. As soon as this budget is completed, it will be on the next budget which will involve the right- sizing exercise. Not sure if that ends up meaning that we will come back and look at some of the way the existing position are allocated. There are certainly some services that the City would like to offer, which are not currently being offered. He does not want to consider going to the taxpayer to ask for those things until the City has gone through the internal evaluation. This budget is considered a transitional budget and staff will go through the right- sizing exercise in FY 14/15. In addition, the City is in a transactional year on two federal grants that requires the City to hold on to personnel in the public safety arena; and the City does not want to put itself in a position of having to pay any portion of a federal grant because the City did not meet the bottom line criteria about maintaining staffing for a year after the grant. There are a lot of things he would like to get done in the next budget cycle. Mrs. Petrolia stated that the budget information was not easy to find in the online agenda items and recommended that a reference number of some sort be assigned to make it easier to the budget item. She asked Mr. Boyd to explain why there was a difference in the numbers of the Proposed Budget ($96,574,063) total revenue and resolution ($96,057,090). In addition, she discussed salary wages and agreed with the pay raises and thinks that they are important. Everyone deserves a wage increase as long as there are performance merits and she does not agree with across the board raises. She stated that she needs a better understanding of the across the board raises and currently she does not support the five percent across the board increases. She also asked if there was a three percent wage increase in FY 2012. Mrs. Gray asked Mr. Chapman if there is any fat in the budget. Mr. Chapman stated that it is a fairly lean budget. He explained the contingency items in comparison to the budget. The City is relaying on the fund balance for this year, which is a short term fix. He stated we opted to have millage stability, look at the concerns regarding staff salaries and have no disruption in the basic level of services until a more comprehensive review can be done. He stated that the City's reserve is healthy and it is about 22% of the operating budget. The City actually added to the fund balance over the last two years and probably will return a slight amount to the reserves in this current operating year because the City is operating below its expense level. The revenues are higher and the expense levels ate lower, so we are expecting a return of slightly over a million dollars to the reserves and the current operating year. He continued to discuss capital improvements and concerns regarding future employee performance increases. Mr. Frankel stated the City employees got a raise last year and the Police actually took hit because their hours were decreased from 84 to 80 hours. He received an interesting email over the weekend and asked if there was any thought into the City selling the cemetery. He asked about charging a nominal fee for the trolleys. In addition, he spoke about the current budget presentation and asked if a synopsis of the budget can be provided in a more understandable format. Mayor Eckstein asked about the beach restoration reimbursement amount, will the funds from the water /sewer South County capacity sale be picked up in the enterprise fund and if the City collect any cable television franchise fees. He asked where is the City picking up the Gulfstream contract and would like to know the contract term; where are the system upgrades being picked 5 August 13, 2013 up in the financial administration in terms of computer and software upgrades for the Finance Department and where is the lobbyist expenses being pick up. He also asked is there some sort of formula or something in the CRA plan that permits certain funding regarding the Clean and Safe Program. Discussion ensued between the Mayor and staff regarding categories related to the Clean and Safe budget; police department administration related to staffing and the legal advisor office, overtime, and fleet maintenance; fire department administration related to overtime and fleet maintenance; code enforcement increase and code enforcement administration regarding code enforcement officers being moved into the Police Department.. The Mayor stated that he would like a cost benefit analysis in regards to moving Code Enforcement in the Police Department. He asked if there had been a reclassification of staffing in Environmental Service or Engineering; if the Public Works Department has someone within the department auditing the public facilities on an on -going basis; why Ocean Rescue is within the Parks & Recreation budget, and would like to see some alignment between parks and recreations in terms of sports destination. Discussion continued between the Mayor and staff regarding the contractual obligations for the Tennis Center, the proposed budget with regards to value added and performance evaluation process. 5. Presentation of Feasibility Report for the Proposed Block 117 Garage Randel Krejcarek, City Engineer presented this item. He stated that there is an item in the capital budget that is being proposed for the design of the garage next year and felt it was prudent to bring this part forward. On April 2, 2013, Commission approved Service Authorization #12 -03 with Kiirnley -Horn and Associates to prepare conceptual layouts for a proposed parking in Block 117 (0 Block of S.E. 6' Avenue, just a 1/z block south of Atlantic Avenue on the east side.) A Consultant looked at three conventional options and two mechanical options. The study considered the following design alternatives: a) stand -alone self parking garage (Options 1, 2, and 3); b) self park parking garage with ground floor retail (Options 1A, 2A, and 3A; and c) automated parking garage system: 1) robotic valet (Option 4, and 2) rack and tail system (Option 5). He discussed each option in detail. Mayor Glickstein adjourned the Workshop Meeting at 10:16 p.m. • 1 y 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 Workshop Meeting of the City Commission held on Tuesday, August 13, 2013, which Minutes were formally approved and adopted by the City Commission on October 1, 2013. 6 August 13, 2013 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. August 13, 2013