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07-17-90SpMtg 3ULY 17, 1990 A Special Meeting of the City Commission of the City of Delray Beach, Florida, was called to order by Mayor Thomas E. Lynch in the Commission Chambers at City Hall at 6:08 P.M., Tuesday, June 17, 1990. Roll call showed: Present - Commissioner Jay Alperin Commissioner William Andrews Commissioner Mary McCarty (Arrived 7:00 P.M.) Commissioner David Randolph Mayor Thomas E. Lynch Absent - None Also present were - City Manager David T. Harden and City Attorney Jeffrey S. Kurtz Mayor Lynch called the meeting to order and announced that this meeting has been called for the purpose of considering (1) Local Option Sales Tax; (2) S.D. Spady Access Issue; (3) Appointment of Three Members to the Delray Beach Housing Authority; and (4) Appointment of Members to the Neighborhoods Task Force. Mayor Lynch stated that Item 2 will be discussed at this time since the persons who will be presenting the Local Sales Tax issUe have not arrived. 2. S.D. Spady Access Issue. The City Manager stated correspon- dence has been received from the CRA on a proposal for acquiring land on the north side of Spady School, with comments from Frank Spence, Execu- tive Director of the CRA, which was passed on to the Commission. Staff has been unsuccessful in scheduling a joint meeting with the School Board, prior to their next regular meeting of July 23rd, at which time they will be deciding whether or not to approve the plans that are to be forwarded to the State. The School Board office should be contacted, if Commissioners plan to be present, in order to get the item on the agenda. David Kovacs, Planning Director, will present a report on the action taken last night by the Planning and Zoning Commission. Mr. Kovacs stated the P&Z Board was very specific in their determination of whether or not the proposal prepared by the City Commission would be consistent with the Comprehensive Plan; that being the extension of 8th Avenue with the parent dropoff at the N.E. corner and the bus dropoff at the S.W. corner. The action recommended to the Commission is on Page 3 of the staff report and states: The new propos- al is consistent with the Comprehensive Plan and will add stabilization to the neighborhood, enhance accessibility without overloading local streets and will be consistent with the Land Use Element, if a firm commitment is made by others with respect to funding for the acquisition of land, with the Decade of Excellence money then going toward the construction. Mayor Lynch questioned how the committed $500,000 for Spady, in the Decade of Excellence Bond, ties in with what the CRA is planning to do. Mr. Kovacs stated, it is his understanding, that the CRA would be acquiring all the property, thereby freeing up the $500,000 for the construction of both accessways. Mr. Randolph expressed an interest in the partial commitment made by the CRA, relative to the immediate availability of funding. He suggested the Commission try to convince the School Board to amend the Plan in order to complete Spady. Upon question by Mayor Lynch, Mr. Randolph commented that he would like the City and the CRA to present the issue jointly before the School Board on July 23rd. Mr. Andrews expressed concern that the School Board was unable to meet with the Commission with regard to the proposal, for a working session, yet they had time to deal with it. Dr. Alperin stated he feels this should be looked at as a total package, because if any part of this arrangement, such as the purchase of the property or putting the $500,000 toward the two roads, is not acceptable to the School Board, then the entire package is useless. He is hesitant to put 10th Avenue through at the City's expense, if they are that reluctant to cooperate, as they have violated their agreement. Upon question by Mr. Andrews, Dr. Alperin stated the main issue is a change in the site plan of a simple move of two buildings. The City is doing everything possible to help them achieve the entryway they agreed to, along with assisting in the financing. Mayor Lynch suggested they approach this with a positive attitude, putting up the $500,000 already committed, and with the CRA, the School Board and the City as a group, an accomplishment can be achieved very quickly. Mr. Andrews questioned, if the terms of the land purchase are agreeable, what happens if the School Board refuses to move the buildings. Mayor Lynch stated, if the School Board supplies a good reason why they cannot move the buildings, he feels the City should take a good look at that. If not, he feels the City should demand it. The City Manager commented that the response from the School Board is going to be that the City Commission signed off on the site plan in March, along with the buildings and locations which they pro- posed. Due to a change in the Commission, a change has been requested and a sense of consistency is needed. While speaking with the Superin- tendent, he advised that the City's position has not changed but, the School Board persisted and the City finally acquiesced. Dr. Alperin expressed disagreement, stating that in the agreement, the School Board was to purchase the property to the north of Spady School, but no definite plans to that affect have been made, thereby violating the agreement. Mayor Lynch stated he feels the City should agree that, orig- inally the City wanted the site plan previously approved, but gave in, took another look at it and realized a mistake had been made. At this time, the Commission is willing to compromise, with the help of the CRA, and return to the original goal. The City Manager commented that a question will then be raised as to who will pay the redesign cost. 2 7/17/90 Tom Fleming, Chairman of the Education Board, stated there is no question about the previous Commission action; this was not approval of the site plan, but rather the extension of 10th Avenue north to Lake Ida Road that indirectly supported the site plan and was subject to the School Board's consideration of the acquisition of that land. Mayor Lynch questioned if Mr. Fleming feels that would be an acceptable way of presenting the proposal, based upon what was just discussed. Mr. Fleming stated he feels Mr. Spence had an excellent solution with respect to the land acquisition. Mr. Randolph commented that, initially, when discussing the expansion of Spady School northward, the School Board sent feeler letters to the property owners regarding the possible sale of their property. He feels this action indicated an intent to expand the school northward and they should be held to their original intent. Upon question, Mr. Spence stated, subject to an Interlocal Agreement being arrived at and all parties agreeing to the conditions, namely, that the School Board would make a commitment to purchase the property back from the City, this would give the City title almost immediately. He further stated, if the School Board cannot afford a payment during the next fiscal year, the City could structure the financing in such a way that they would not have to make the first payment until FY 1991/92. Dr. Alperin moved to endorse and present the plan proposed by Mr. Spence to the School Board and request immediate consideration, seconded by Mr. Randolph. Upon question by Mayor Lynch regarding the presentation of the Plan, Dr. Alperin stated he would be available to do that. Mr. Andrews questioned if the motion should include the alter- ing of the site plan. Dr. Alperin amended his motion to include the modification of the site plan, Mr. Randolph amended his second. Upon roll call the Commission voted as follows: Dr. Alperin - Yes; Mr. Andrews - Yes; Mr. Randolph - Yes; Mayor Lynch - Yes. Said motion passed with a 4 to 0 vote. 1. Local Option Sales Tax (City Commission). Carol Elmquist, Palm Beach County Commissioner, stated she was unaware that the Commission was not familiar with the history of the Local Option Sales Tax and she would like to supply that information. Negotiations took place over a two and one-half month period by a committee appointed by the Municipal League regarding a Local Option Sales Tax that everyone could live with. In an attempt to learn what the one most important element to the Cities is, they witnessed many Bond Issues and Sales Tax Bond Issues that were defeated. The Municipal League turned down an option of one cent over a period of ten years, even though the County Commission felt they could support it because the Court and Jail issue touches everyone in Palm Beach County. The County authorized the sale of the bonds for a 25 year period, which were sold -3- 7/17/90 last week, assuring the construction of the Court and Jail facilities at a cost of $590,000,000, if the one-half cent sales tax is not utilized. Upon question by Mr. Andrews, David Woods, Director of Finan- cial Management for Palm Beach County, came forward and answered ques- tions relative to the Bonds for the Court cost. After presenting each Commissioner with 2 handouts, he stated the actual cost of hard con- struction is $228,000,000. The Bonds include this construction cost, a Debt Service account, an initial deposit to the Sinking Fund, a Cost of Issuance fund, original discount and an underwriter's discount. County money previously spent on this project is $26,500,000. Mayor Lynch questioned, should the Sales Tax pass and begin next year for a five year period, what actual savings are being projected. Mr. Woods advised, in the first column of the distributed sheet, the County is requesting the citizens of Palm Beach County to provide $451,000,000 over the life of this issue to pay for the Courts and Jails. He further stated, the second column shows a total of $260,000,000 which is the proposed Sales Tax for a five year period leaving a balance of $190,000,000. Sheet two shows what the County will do if the Sales Tax passes and $260,000,000 is generated over the five year period. This shows, at the end of the five year period, a net balance of $210,000,000, the amount required to defease the outstanding issue. The $210 million would fund all future costs of that outstanding issue. Whether or not the Bonds are actually called and a premium is paid, or the funds are left to remain in the escrow account to be paid when they come due according to the existing debt service schedule, would be a financial decision made at the time the Bonds are callable. The Interlocal Agreement states that, if there are any funds left, they would be split with the municipalities in the County. Dr. Alperin questioned how the tax is structured in order that those funds can be used for no other purpose than to defease the bonds, or is this to be in the General Fund of the County. Mr. Woods stated the Interlocal Agreement requires that this be placed in a Sales Tax Criminal Justice Facility Court and Jail Bond Fund. He added that this number is based on the estimated sales tax and the Local Agreement states, if there is any excess, it will be split according to the existing State formula. If this fund is short, after the five year period, the County will assume the risk of producing any funds that are short. Upon question by Dr. Alperin, Ms. Elmquist advised this is tied specifically to courts and jails. Dr. Alperin then requested a legal opinion of the City Attorney. The City Attorney stated he would advise the County that they could build additional jail facilities and addi- tional court facilities. Mr. Randolph questioned, should the sales tax be on the ballot in November with the one-half cent and it is not voted in, in what position does this leave the County. Mr. Woods advised that the County will need to contact the residents and, somehow, come up with the funds to complete these facilities. Upon question by Dr. Alperin, Mr. Woods stated the amount of $9,000,000 in the proposed 1990/91 budget, is for construction costs only. -4- 7/17/90 Daniel Hurley, Chief Judge of the Court, stated, when speaking with people regarding passage of the sales tax, he consistently hears the disbelief that the sales tax will ever end. By law, this sales tax addition must end, or another sales tax imposed without a public vote. He further stated, it is his understanding, when the Bonds were issued, the capacity to convert to sales tax was built into the project. Mr. Andrews requested the estimated cost per square foot for the Courthouse. Judge Hurley stated the amount that actually came in on the bid was just under $100 per square foot. Upon question by Mr. Andrews, Judge Hurley stated, it is his understanding, when a person is arrested in Delray, a service is provid- ed by the Sheriff's office to pick those individuals up and transport them to the County jail. Mr. Andrews expressed a concern regarding the amount of time the officers in Delray spend in the court room giving their testimony, taking them away from their normal job, when these violators are brought before the Court. Judge Hurley stated there is a statute that requires locating the County Court in the County seat. He further stated, in response to Mr. Andrew's concern, realizing the validity, he attempted to change this by creating a jury district to satisfy the Belle Glade area. The County paid a terrible price for this because the Florida Supreme Court found that, when there was a discrep- ancy of less than one percentage point, there was an unconstitutional racial imbalance and every murder case was reversed where that issue had been raised and put on a shelf as an error. Those pre-trial prepara- tions are being reviewed and it is hoped that this can take place in the branch Courthouses. Commissioner McCarty arrived at this time. Mayor Lynch stated he feels the jails are not the sole issue. He would like to see some of the $190 million used for the prevention of crime and have it so stated in the Interlocal Agreement. Judge Hurley stated the Executive Committee of the Crime Commission recently met and is making the same recommendation to the County Commission; that being that the County Commission would take approximately $5 million of the $9 million they would spend for debt service next year and allocate that to programs relating to drug intervention. Dr. Alperin stated he would like to make a clarification that, if there is to be a $190 million savings, that savings would mean maintaining a lower ad valorem tax. It is not money that is just sitting there waiting, but will be taxed to the citizens. Commissioner Elmquist commented that the Bonds are backed by non-ad valorem revenue and the citizens of Delray will receive $11 million of that $190 million in savings. Everyone must realize there are operating funds involved and operating the Jail facility alone will cost between $21 and $25 million. Ms. McCarty requested clarification that the dollars that would have been used to pay off the Bond are being committed to the operating cost. Ms. Elmquist advised that the $9 million in the budget for this year will be used for the interest on the Bonds, should the Sales Tax not pass. Upon question by Ms. McCarty, Mr. Woods stated, if the proposed 1990/91 budget is approved by the Commission and the $9 million is built into the base budget, the County would commit to use the current $9 million for the alternative programs to help reduce the -5- 7/17/90 Jail population, thereby reducing the operating cost upon the opening of the Jail. He does not know if this commitment carries beyond the five year period of the Sales Tax. Upon question by Mayor Lynch, Ross Licata, Delray Police Sergeant with Community Relations Section, stated the Sheriff's office normally transports those persons who have been arrested but, on occa- sion, it is necessary for the local policemen to do this. Mayor Lynch stated he feels there is a major communication breakdown between the County and the City of Delray and requested a commitment from the County for better communication in the future, should the City Commission of Delray back this Sales Tax. Ms. Elmquist stated she was in agreement with him and, in the future if the Commis- sion should feel this way at any time, she would like to be made aware of it. Ms. McCarty stated she feels if the City Commission would like to support this proposal, that it should be made contingent upon a commitment from the County Commission that the dollars that would have gone toward the long-term bond, or at least over the next five years, should go toward prevention programs and/or the operation of the facili- ty and should be in writing. She also commented that the State is mandating all of these things but provides no funding. They now give the cities this non-ad valorem source of funding that, if there should be a Local Option Sales Tax, the cities could get 41% in order to fund their Capital Improvement needs. She added there is over $100 million in Capital Improvement needs in Palm Beach County in the cities alone. Therefore, the $100 million must be funded by those cities in some manner. By voting for this, she feels the cities are relinquishing the right to fund this with a non-ad valorem revenue and, therefore, it may be necessary to fund this through property taxes. Richard Jaeschke, Councilman of the Town of Haverhill, stated he was on the negotiating team that worked on the Local Option Sales Tax, and is present to provide some background on the resolution re- ceived from the Board of Directors of the Municipal League in opposition to this sales tax. Essentially, the County gets into a $21 million debt payment per year which must be paid from revenue sources. State Statute allows 59% for the County and 41% for cities. He commented that Ms. McCarty's figure was in reality a bit low, as the cities have identified $171 million worth of Capital Improvements over the next five years. Not all cities have completed their Comprehensive Plan process, so there are several that are not on the list, which could ultimately result in much more in Capital Improvements. The Municipal League requested that cities not support the Interlocal Agreement, as it removes a significant funding source from the cities, in addition to removing from the County a source of funding for environment, roads, etc. The Municipal League feels this is a very significant funding source to both County and cities and is not right for this time. Ms. Elmquist stated the County is split according to the State formula, which is 41% for municipalities, 31% for the unincorporated area and 28% Countywide. -6- 7/17/90 Mr. Woods stated the 59% the County gets, is separated into two parts in the statutes. The problem is, the portion allotted to the County in the amount of 28% would not cover the debt service on the Courts and the Jail. As a result the County has requested, because the Court and Jail is a recognized Countywide need, that both the munici- palities and the unincorporated area (as the 38th municipality) forego their share in order that all may benefit. Mayor Lynch questioned if the $260 million is actually going to remain as the principal. Mr. Woods responded that the $260 million, along with interest earned, is enough to defease the issue. At the end of the 25 year period there should be nothing, if all the assumptions are correct. Judge Hurley stated he would like to share one concern relative to the resolution of the Municipal League. Their approach is to say that the running of the Courts and Jails is a County responsibility. He would like the public to know that those monies that are collected in Court are distributed and returned to the municipalities under a formula devised in the mid seventies and he feels the formula is grossly inequi- table in this day. He protests the notion that the Commissioners have no responsibility to the Court system. All citizens in this area who visit the Courts with their problems seem to feel they have no obliga- tion. Public Safety must be a priority with all citizens. Ms. McCarty stated she feels criminal justice is something everyone should work toward together and bear the burden together. However, she feels there should also be a tax to endorse this structure. She feels it would be irresponsible of the Commission to give up a funding source that would not tax the property owner. Dr. Alperin stated he does not like endorsing a tax at any time, but expressed a concern that the City is losing an opportunity to fund some improvements that are needed. He also has a concern with regard to the funds being open ended. Mr. Randolph stated he would prefer stopping one of the major issues coming into the City's borders that is causing much of the crime, opposed to building new jails. He feels the drug issue has escalated those problems facing all municipalities and counties in the nation. He is prepared to endorse this sales tax to allow the residents of Palm Beach County an opportunity to decide for themselves. Somewhere down the road peace and tranquility must be restored. Mr. Andrews stated he is concerned with regard to the resolu- tion that takes the $190 million savings and places it into drug treat- ment and prevention. Secondly, he is concerned about Ms. McCarty's comments with reference to working together with the cities, after watching other cities flounder with their Bond issues. He is not convinced that all other cities will be able to muster up enough camara- derie to sell their citizens to vote on this issue. If not, it will go down at the expense of a cost-effective funding source for the facili- ties. Mayor Lynch stated he feels this has not been handled well between the Municipal League and the Commission. He stated he will -7- 7/17/90 support the issue to get it on the ballot, but has no plans to help convince citizens that there is no other option. He does not feel it will be passed unless some changes are implemented and communication improves between the municipalities and the County. Upon question by Dr. Alperin, the City Attorney stated, if a motion is made to amend the Agreement, in reality, it is being voted against, as the City would be in no position to execute it and there are 37 other municipalities that might vote in a similar manner and differ- ences will need to be worked out with the County. The City cannot pass on something different than that passed in Boca Raton. Dr. Alperin stated a concept is not being voted on, but rather an endorsement of proposals. His concern is that these funds could be used for future Jails and Courthouses and not restricted to these in particular. Judge Hurley stated all the Commission is being asked to do is to sign the Interlocal Agreement that will allow the County Commission to place the issue on the ballot. He is convinced that, by the time this goes on the ballot in November, the County Commission will have voted for a resolution promising that the monies will be allocated to drug prevention and treatment, should this pass. Mr. Andrews moved for approval of the Interlocal Agreement, as stated, seconded by Mr. Randolph. Upon roll call the Commission voted as follows: Mr. Andrews - Yes; Mr. Randolph - Yes; Mayor Lynch - Yes; Ms. McCarty - No; Dr. Alperin - No. Said motion passed with a 3 to 2 vote. 3. Appointment of Three Members to the Delray Beach Housing kuthority. Mayor Lynch stated it was agreed at the meeting last week that the Mayor has the appointment for the people on the Housing Authority, but he is open to recommendations. For Seat No. 1, there was a recom- mendation for Nadine Hart. While attending the last Housing Authority Meeting, he was informed by Eugene Strews that he would be willing to continue as a member. Ms. McCarty moved for approval of the appointment of Eugene Strews for a second term, seconded by Mr. Andrews. Upon roll call the Commission voted as follows: Mr. Randolph - Yes; Mayor Lynch - Yes; Ms. McCarty - Yes; Dr. Alperin - Yes; Mr. Andrews - Yes. Said motion passed with a 5 to 0 vote. Mayor Lynch stated the second open seat is held by Jay Slavin and he received one recommendation from Dr. Alperin. A few names have been recommended, but he would like to postpone an appointment until the meeting of July 24th. The third seat is for a resident of the project. Mr. Andrews recommended Lillie Harris, a resident, seconded by Dr. Alperin. Upon roll call the Commission voted as follows: Mayor Lynch - Yes; Ms. McCarty - Yes; Dr. Alperin - Yes; Mr. Andrews - Yes; Mr. Randolph - Yes. Said motion passed with a 5 to 0 vote. -8- 7/17/90 4. Appointment of Members to the Neighborhoods Task Force. Dr. Alperin stated he has only one representative at this time from Delray Shores - Del Jester, 13847 Coral Way. Ms. McCarty commented that she has no one to add at this time. Mr. Randolph stated his final selection is Dorothy Sutton, 101 N.W. 9th Avenue, Telephone 276-4525. Mr. Andrews stated in Area "I" his selection is Debra Dowd, 7 N.E. 16th Court, Telephone 276-3991. He tentatively named Frank McKinney, Pineapple Grove, until further confirmation. Mayor Lynch stated his first three recommendations are desig- nees of the Housing Authority, the Planning and Zoning Board and the CRA and he would like to name the Chairmen, or his appointee, of those three organizations. In Area "A" his recommendation is Eather Mae Collins, although he does not have confirmation as yet and June Carr has been recommended for Area "P" He suggested the search continue and, hope- fully, can be finalized by the July 24th Regular Meeting. Upon question, Mayor Lynch expressed a desire that persons who are property owners be recommended, but that is not a "must" Mayor Lynch declared the meeting adjourned at 7:55 P.M. City clerk/ ATTEST: The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Commission of July 17, 1990, which minutes were formally approved and adopted by the City Commission on ~i~~L /~ /9~ . / , City C i~f~7 NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Commission. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. -9- 7/17/90