Regular Commission Meeting

Lake Park Town Commission, Florida Regular Commission Meeting Minutes Commission Chamber, Town Hall, 535 Park Avenue, Lake Park, FL 33403 July 03, 2024 at 6pm __________________________________________________________________ Roger Michaud __ Mayor Kimberly Glas Castro __ Vice Mayor Michael Hensley __ Commissioner Mary Beth Taylor __ Commissioner Judith Thomas __ Commissioner John D’Agostino __ Town Manager Thomas J. Baird. __ Town Attorney Vivian Mendez, MMC __ Town Clerk PLEASE TAKE NOTICE AND BE ADVISED, that if any interested person desires to appeal any decision of the Town Commission, with respect to any matter considered at this meeting, such interested person will need a record of the proceedings, and for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Persons with disabilities requiring accommodations in order to participate in the meeting should contract the Town Clerk’s office by calling 881-3311 at least 48 hours in advance to request accommodations. ______________________________________________________________________________ CALL TO ORDER/ROLL CALL 6:02 P.M. PRESENT Mayor Roger Michaud Vice-Mayor Kimberly Glas-Castro Commissioner Mary-Beth Taylor Commissioner Judith Thomas Commissioner Michael Hensley PLEDGE OF ALLEGIANCE Led by Mayor Michaud. The Commission Recessed at 6:04 pm for the Executive Session. The Commission Returned from the Executive Session at 6:39 P.M. PUBLIC COMMENT: This time is provided for addressing items that do not appear on the Agenda. Please complete a comment card and provide it to the Town Clerk so speakers may be announced. Please remember comments are limited to a TOTAL of three minutes. Motion to reorganize the agenda to place Public Comment before Special Presentation by Vice- Mayor Glas-Castro. Seconded by Commissioner Thomas. Voting Aye: All -Ms. Jean Marie Middleton is running for County Court Judge and introduced herself to the Commission. Ms. Mikki Isackson spoke about the elections being stolen and asked the Commission to read and support documents she will be submitting to the Town. Ms. Candas Rojas left some documents for the Commission and spoke about legalities within Palm Beach County. Mr. Brett McCullough introduced himself and provided his background. Mr. James Sullivan spoke about an area in Town where there is no sidewalk and it is dangerous. He also spoke about proper recycling. Ms. Betty Bennett introduced her Flower shop “Flowers for all Occasions”. SPECIAL PRESENTATION/REPORT: 1. Proclamation Declaring July 17, 2024 as "13th Annual KidsFit Jamathon Day." No one was in attendance to accept the proclamation. 2. Legislative Update by Representative Jervonte Edmonds Representative Jervonte Edmonds presented to the Commission (see Exhibit "A"). Commissioner Hensley stated for the record “All the things you did for the youth and the School District, etc. people don’t get to see all that he’s done and he’s changed a lot of kid’s lives and he thanks him for that.” Vice-Mayor Glas-Castro thanked Representative Edmonds for his help and support in Tallahassee and Palm Beach Shores.  3. Recommendations Rising from the 2023 Solid Waste (Sanitation) Utility Rate Analysis. Public Works Director Jaime Morales provided a summary of the items stating that the presentation had already been made last year. (see Exhibit "B"). Vice-Mayor Glas- Castro spoke about the large increase last year and clarified that this years’ increase would go back to the 3% range. Public Works Director Morales confirmed this was correct. 4. Recommendations Rising from the 2023 Stormwater Utility Rate Analysis. Public Works Director Morales provided a summary of the items stating that the presentation had already been made last year. (see Exhibit "C"). Vice-Mayor Glas- Castro asked about the increase but feels that the increase is necessary. Commissioner Thomas spoke about the increases and that we have seen the improvements with reduction to flooded areas and she commends the Commission for making the decision to move forward with this. TOWN ATTORNEY, TOWN MANAGER, COMMISSIONER COMMENTS: Town Attorney Baird provided information regarding the Executive Recruitment Service Proposals (Exhibit D). The Commission asked questions regarding the services the firms provide. Commissioner Thomas provided her comments regarding this process. Commissioner Thomas stated "For the record, I am more willing to have our Human Resources (HR) Director be our Town Manager as opposed to going back out. The reason being that where we are now and where we were approximately 10 years ago is a vast difference. 10 years ago we were looking for the Governor to take over the town of Lake Park. Because of the vision of our Town Manager we are seeing all of that hard work come to fruition. And so therefore, we have a path where we look to continue. I believe we have in-house staff who can continue that vision and just speaking of tonight when we looked at the studies that were done for us that were projected out until 2028. We were in no position 10 years ago and here were are looking at a budget that was over $1 million. At this point in time we know what we have. We are practically 98% built out in our town and the leadership we need is already here. I don’t see the need to bring on someone entirely new to direct what I feel that we are on auto-pilot and that direction has already been presented to us and that person is already here and has longevity not only that but if it has been the desire of this Commission to promote from within, we have that here and I would like to proceed with that. In my opinion I would like to promote what we have here in house as that individual has been in that capacity more than once. They have the knowledge and background and they have worked in that capacity. I personally would like to see that if we bring someone in, they’re really just going to be following the footprint of what our Town Manager is going to be leaving behind. Our Town Manager has done a good job in educating our staff and really bringing our HR director and allowing the opportunity for advancement to occur and now we’re here where that opportunity can be made available to in-house. In my opinion, I would move forward in that direction and while I honor these firms, I am not in agreement of wanting to do a search at this time, but to continue along the path with someone that’s trusted and we know their work ethics.” Vice-Mayor Glas- Castro stated that she respectfully disagrees with this. She feels that we have to find someone with better experience and we cannot stay stagnant and wants to move the Town forward. She stated with the interest of Investors and Developers, we need to have a Town Manager that has broad experience with other locations. Commission Taylor stated that she agrees with the Vice-Mayor’s opinion. Commissioner Hensley stated that the Commission had already decided to go through this process. Mayor Michaud stated he would like to see the candidates that are out there but also wants to recognize Ms. Turner and believes she would make a good candidate and should apply for the position. Commissioner Thomas stated for the record that “If we have someone, she prefers we hire that person, but has agreed to move forward with the candidate search.” Motion made to authorize the Mayor to sign a letter of engagement with Mercer Group by Vice- Mayor Glas-Castro, Seconded by Commissioner Taylor. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas, Commissioner Hensley. Town Manager D'Agostino provided his comments via Exhibit "E". The Commission agreed on Saturday November 2, 2024 to discuss additional density initiatives along Lake Shore Drive and the Federal Highway Mixed-Use corridor from 10am to noon. The Commission agreed to hold a Workshop on Wednesday September 4, 2024 at 6pm to discuss the sale of a Town owned strip of land located directly north of 302 Lake Shore Drive. Commission consensus was reached to proclaim August 2024 as Florida Water Professionals Month, to be presented at a future meeting. Commissioner Taylor showed a picture of a person waiting for the bus sitting on the ground. She asked that a bench and trash receptacle at that bus stop. Vice-Mayor Glas-Castro expressed concern for what looks like a junkyard on 13th Street and that it is unsightly. Town Manager D’Agostino stated that staff is aware of this and code enforcement has already paid a visit. She stated that she wants to review the plans for the new project on 10th Street and Park Avenue. Community Development Director Nadia DiTommaso stated she would distribute the plans to the Commission as soon as possible. It was agreed that Town Attorney Baird would discuss this item with staff to ensure proper procedure is followed. Commissioner Thomas asked if they could have individual meetings with the developer and with staff prior to the meeting. Town Attorney Baird stated they could as long as they disclosed those discussions. Commissioner Thomas stated that she is again noticing shopping carts back on Water Tower Road. Commissioner Hensley spoke about the building on the corner of Park Avenue and 8th Street and that it is an eyesore and asked if there is anything the Town can do. Commissioner Thomas asked about the status of the relocation of the 918 Park Avenue building. Town Manager D’Agostino stated that the owner is in the process of researching options. Mayor Michaud asked for an update on the Live Local project. Community Development Director DiTommaso stated that would be an upcoming agenda item for the August 3, 2024 meeting. Mayor Michaud shared discussions he had with some other Mayors on this topic. He wants to encourage all Commissioners to join Legislative Policy Committees. He also congratulated the following: Texas Roadhouse on Congress Avenue, Betty the florist on Park Avenue and to his son for being accepted to EMT school. CONSENT AGENDA: All matters listed under this item are considered routine and action will be taken by one motion. There will be no separate discussion of these items unless a Commissioner or person so requests, in which event the item will be removed from the general order of business and considered in its normal sequence on the agenda. Any person wishing to speak on an agenda item is asked to complete a public comment card located on either side of the Chambers and given to the Town Clerk. Cards must be submitted before the item is discussed. Motion made to approve the Consent Agenda by Vice-Mayor Glas-Castro, Seconded by Commissioner Thomas. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas, Commissioner Hensley.  5. June 5, 2024 Regular Commission Meeting Minutes 6. June 12, 2024 Executive Session and Special Call Commission Meeting Minutes 7. Resolution 44-07-24 Authorizing and Directing the Mayor to Execute a Change Order to the Agreement between the Town of Lake Park and the State of Florida Department of Environmental Protection for the 2nd Street Resurfacing and Green Infrastructure Project. 8. Resolution 45-07-24 Authorizing and Directing the Town Mayor to Execute, on Behalf of the Town of Lake Park, an Amendment to the Grant Agreement with the State of Florida Department of Environmental Protection for Grant Funding for Storm-water Mitigation Infrastructure Improvements as Part of the Southern Outfall Stormwater Infrastructure Improvement Project. 9. Resolution 46-07-24 Authorizing and Directing the Mayor to Execute a Construction Services Agreement between the Town of Lake Park and HG Construction Development & Investment, Inc. PUBLIC HEARING(S) - ORDINANCE ON FIRST READING: 10. Ordinance 07-2024 Mobile Vendors, including Mobile Food Dispensing Vehicles (i.e. Food Trucks). AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF LAKE PARK, FLORIDA, AMENDING CHAPTER 22, ARTICLE III, SECTIONS 22-101 THROUGH 22-113 ENTITLED “STREET AND MOBILE VENDORS”; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. Town Planner Anders Viane explained the item. Vice-Mayor Glas-Castro expressed a concern with how this would be enforced at night. Town Manager D’Agostino stated there as a few options that might include having a code enforcement officer work during those hours. Town Planner Viane stated that language could be added for second reading of the Ordinance that would prohibit overnight parking and accessory use.  Motion made to approve Ordinance 07-2024 on first reading by Commissioner Thomas, Seconded by Commissioner Hensley. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas, Commissioner Hensley. Town Attorney Baird read the Ordinance by title only. 11. Ordinance 08-2024 Creating a New Section 30-6 Pertaining to the Operation of Micromobility Devises, Golf Carts, Low Speed Vehicle and Motorized Scooters and Amending Chapter 30 Pertaining to High-Capacity Passenger or Work Vans. AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF LAKE PARK, FLORIDA, AMENDING CHAPTER 30, ARTICLE I TO CREATE A NEW SECTION 30-6 PERTAINING TO THE OPERATION OF MICROMOBILITY DEVICES, GOLF CARTS, LOW SPEED VEHICLES, AND MOTORIZED SCOOTERS; PROVIDING FOR THE AMENDMENT OF CHAPTER 30, ARTICLE II SECTION 30-35 PERTAINING TO HIGH-CAPACITY PASSENGER OR WORK VANS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING FOR THE REPEAL OF ALL LAWS IN CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. Town Planner Viane explained the item and clarified which types of mobility devices could ride in the street as opposed to the sidewalk. Commissioner Taylor feels there are too many devices that are allowed on the sidewalk and this is not safe. Town Planner Viane explained that this plan allows for widening of all sidewalks or shared use paths. Commissioner Thomas asked for a definition of multi-modal pathways. Town Planner Viane stated that the definition is part of the Mobility Plan. Commissioner Hensley agrees that motorized bikes may need to have a pathway for use. Motion to approve Ordinance 08-2024 made by Commissioner Taylor, Seconded by Commissioner Thomas. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas, Commissioner Hensley. Town Attorney Baird read the Ordinance by title only. PUBLIC HEARING(S) - ORDINANCE ON SECOND READING: NONE NEW BUSINESS: 12. Setting the Current Year Proposed Millage Rate, and Restating the Date, Time, and Location for the First Public Budget Hearing. Town Manager D’Agostino stated that they are proposing the highest millage rate and there will be an opportunity to reduce the rate later in the process. The first public budget hearing is set for September 5, 2024 at 6:30 pm in the Commission Chambers. Motion made to establish the maximum proposed millage rate at 5.1870 mills and that we restate the first public budget hearing to be on September 5, 2024 at 6:30 pm in the Commission Chamber by Vice-Mayor Glas-Castro. Seconded by Commissioner Thomas. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas, Commissioner Hensley. REQUEST FOR FUTURE AGENDA ITEMS: ADJOURNMENT: Motion to adjourn made by Commissioner Thomas. Seconded by Vice-Mayor Glas-Castro. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Commissioner Thomas. Commissioner Hensley was not present. Meeting adjourned 9:47 pm. FUTURE MEETING DATE: Next Scheduled Regular Commission Meeting will be held on July 17, 2024.  Exhibit A Florida Legislative Session Review #RepJervonteEdmonds PREPARED BY REP.JERVONTE EDMONDS “EVERY FLORIDIAN DESERVES THE FREEDOM TO BE HEALTHY, PROSPEROUS, AND SAFE.” District 88 Find Your State Representative & State Senator #RepJervonteEdmond Legislative Session  REPRESENTATIVE EDMONDS COMMITTEES •Health & Human Services Committee •Joint Administrative Procedures Committee •Constitutional Rights, Rule of Law & Government Operations Subcommittee •Transportation & Modals Subcommittee •State Administration & Technology Appropriations Subcommittee  REPRESENTATIVE EDMONDS COMMITTEES •HB 13 -Minimum Base Salary for Full-time Teachers •HB 25 - Florida Bright Futures Scholarship Program •HB 31 - Landlords and Tenants •HB 41 - Mortgage Loans and Insurance Payments Grant Program •HB 329 – Financial Assistance for Homeowners •HB 767 - Resident Status for Tuition Purposes •HB 1017 - Insurance  Housing & Insurance #RepJervonteEdmond No major reforms were made; importants workshop was hosted. One year insurance Property Insurace tax cut equaling about $50 per homeowner. Unregulated surplus lines insurers will Reform be allowed to take policies out of Citizens that cover second homes. My Safe Florida Home $200M added to this program for the next fiscal year. Affordable Housing $408 M – Provides $174 M for SHIP, the State Housing Affordable Housing Initiatives Partnership program; and $234 M for SAIL, the State Apartment Incentive Loan program. HB1203 requires HOAs in the state to give each resident its rules and HOAs covenants and force them to let each person know of any updates to those documents. Controversial proposal designed to prevent homeless people from sleeping Homelessness in public places  Tax Package - ~508.8 Mil Provisions in HB 7073 include: #RepJervonteEdmond s • a 14-day “back-to-school” tax holiday • two 14- day “disaster preparedness” tax holidays for specified disaster preparedness supplies; • a one-month “Freedom Month” tax holiday for specified recreational items and activities; • a seven-day “Tool Time” tax holiday for tools/equipment used in skilled trade • allows counties deemed to be area of critical state concern to give an affordable housing tax exemption to properties with more than 10 units; allows taxing authorities the power to opt out of state law relating to certain affordable housing exemptions, if certain conditions are met and the decision is approved by a two-thirds majority of the governing body; allows an affordable housing tax exemption for the first 15 years of certain new, low- income housing projects; and revises exemption parameters and processes. • corporate income tax credit for three fiscal years for businesses that hire persons with disabilities; • creates insurance premium deductions for residential and flood policies and creates a corresponding insurance premium tax credit for insurers required to give deductions; Education #RepJervonteEdmond The bill authorizes a minor aged 16 or 17s years to work on any residential building HB917 construction, HB931 would allow volunteer chaplains in public schools; K-12 students could start Chaplains & receiving instruction on the history of communism by the 2026-2027 school year Communism Bill w/HB1349. HB 1403 is meant to clarify the universal voucher program, which was expanded last Vouchers year. The bill establishes some guidelines to distribute voucher funds to families in a timely manner after public outcry on late payments. The bill requires school districts to inform students and parents during course SB1688 selection for middle school of the career and professional academy or career-themed course available within the district Post-Secondary GATE program would help HS drop-outs earn their GED or equivalent, and then work Eduation towards a professional certification.  BUSINESS #RepJervonteEdmond s The bill provides that a county or municipality that substantially complies with the HB473 cybersecurity training, standards, and notification protocols under current law or any Cyber Security other political subdivision of the state that complies with these standards and protocols on a voluntary basis, is not liable in connection with a cybersecurity incident. Florida’s Workers’ Compensation Law (WC Law) mandates employers to furnish SB362 injured workers with necessary medical care for the duration required by the injury or Workers Comp recovery process. bill increases the maximum reimbursement for physician licensed, from 110 percent, to 175 percent of the reimbursement allowed by Medicare. HB 629 The bill requires the warranty to cover the newly constructed home for a minimum Builders Warranty full one-year period, even if the home is sold or transferred. State Small Business Credit Initiative $175.2 M – Provides federal budget authority to Small Business allow expanded access to capital and credit to small businesses in the state, specifically minority, women, and/or veteran-owned businesses Non-profit Security Grant Program $10 M – Provides funding to support nonprofit Nonprofit organizations, including houses of worship and community centers, that are at high risk for violent attacks or hate crimes.  BUSINESS #RepJervonteEdmond s • Provides that minors 16 and 17 years old: • May only work between 6:30 a.m. and 11 HB49 p.m., when school is scheduled the following day Minors Employment • Provides that minors 15 years of age or younger, instead of 17 years of age or younger, may not work more than: • 6 consecutive days in any one week. The bill removes the ability of local governments to require a minimum wage for HB433 certain employees under the terms of a contract, and provides that the bill’s revisions Wages and Heat to Florida’s wage and employment benefits law do not impair any contract entered into before September 30, 2026. • Allows local construction contractor licensing agencies to recommend HB 1335 restitution as a disciplinary action. DBPR • Clarifies that an exclusion from engineering licensing requirements applies to all business organizations, not just corporations. Moving Florida Forward $370 M – Provides funding to supplement the Work Program Road Projects and accelerate the completion of selected road projects to provide traffic congestion relief in the State of Florida Provides $130.4 M ($97 M GR, $33.4 M TF) for economic development activities (Job Growth Grant Fund, Quick Response Training, Defense Support Task Force, Hispanic Economic Development Business Initiative Outreach Program, Black Business Loan Program, Military Base Protection, Defense/Rural Infrastructure, Select Florida, Sports Foundation). Social media & AI Final bill sets required state-mandated age verifcation for pornography; bans social media for anyone under 13; 14 and 15- HB1/HB3 year-olds could now have accounts under the new measure, but with parental consent. Likely still not constitional. #RepJervonteEdmond s Requires certain political advertisements, electioneering HB919 communications, or other miscellaneous advertisements made with AI to include specified disclaimer. #RepJervonteEdmond s  Next Session 3 7 Questions?  VOLUNTEER Thank VOTE BY MAIL you! ONLINE  Exhibit B Town of Lake Park Solid Waste Utility The 2023 Rate Study Public Works Department June 21, 2023 1  Project Milestones • On January 18, 2023, the Town Commission engaged Raftelis to prepare a solid waste rate study • Town staff held a special workshop for residents and business owners on June 8, 2023 › Public notices (in three languages) and a follow-up letter were sent to all Town properties; project information was also added to Town’s website in April 2023 › The agenda and presentation materials were made available on the Town’s website on June 7, 2023 › The presentation was also recorded for those who could not join the meeting in person 2  June 8th Workshop – Discussion Topics 1. Introductions 8. Summary of Current 2. Solid Waste Utility Background Operations 3. Solid Waste Utility Operations 9. Conclusions and 4. The Solid Waste Utility Rate Recommendations Analysis 10. Q&A 5. Principal Cost Drivers 11. Closing Comments 6. Study Objectives & Tasks 7. Major Study Assumptions 3  Executive Summary 4  Solid Waste Utility – Background • Collects solid waste from residential and commercial properties • First line of defense for the health of the community • Protects the environment, avoids air/water contamination, and recovers materials through recycling processes 5  Solid Waste Utility – Background (cont.) • Provides a variety of educational opportunities during public outreach events • Provides Roll-off disposal services through franchise agreements with three (3) haulers • Partners with national, regional and local public/private organizations for continuous process improvement 6  Solid Waste Utility – Background (cont.) • Authorized Staff: Nine (9) full-time employees: › Supervisors (2) › Sanitation Truck Operator I (3) (Some vacant 12 months) › Sanitation Truck Operator II (3) (Some vacant 12+ months) › Sanitation Truck Operator Trainee (1) 7  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division is assigned ten (10) primary collection trucks: Automatic Side Loader (ASL) › Primary Uses: Residential Garbage, Recycling › Inventory: Four (4) › Average Yrs. in Service: 6.5 Yrs. 8  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division also operates: Front-End Loader (FEL) › Primary Uses: Commercial Garbage, Recycling › Inventory: Four (4) › Average Yrs. in Service: 6.5 Yrs. 9  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division also operates: Clam Truck › Primary Uses: Residential Vegetation Debris and Bulk Trash › Inventory: Three (3) › Average Yrs. in Service: 5.75 Yrs. 10  Solid Waste Utility – Background (cont.) • Fleet Inventory › Recommended Equipment Backup Ratio per Solid Waste Association of North America (SWANA): 1:1.2/1:1.5 Needed for Asset (# in Fleet) 1:1.2 Ratio 1:1.5 Ratio Daily Operations Automatic Side Loader 2 2.4 3 Front-End Loader 2 2.4 3 Grapple (Clamshell) Truck 2 2.4 3 Rear Loader 0 1.2 1.5 11  Solid Waste Utility – Background (cont.) • Operates as a self-supporting enterprise fund with separate accounting from other Town departments and resources • Town has historically used operating reserves to cover actual expenses that exceeded the budgeted amounts while phasing in rate adjustments over time Historical Sanitation Annual Assessment- Residential Assessment Year Single-Family/Multi-Family <5 Multi-Family >4 2019-2020 $215.49 $145.93 2020-2021 $234.88 $159.06 2021-2022 $234.88 $159.06 2022-2023 $246.62 $167.01 2022-2023 $258.37 $174.97 12  The 2023 Solid Waste Utility Rate Study  Solid Waste Program Requirements • Total program needs through FY28 are estimated to exceed $20.0 million 14  Projected Revenues • Annual revenues estimated at $2.2 million per year › Most residential property owners take advantage of the 4% discount by paying early • Assumed 1% growth in residential and multifamily cart services • Growth in dumpster accounts based on development projections provided by Town staff 15  Principal Cost Drivers • Current operating deficiency › FY23 operating expenses exceed current revenues by approximately $250,000 (12% of existing rates) • High costs, frequency and severity of mechanical, fleet repairs › Service Interruptions – Emergency contract operations / limited providers – Urgent and specialized repair needs / sole source providers with little competition  Unable to shop around repair costs 16  Principal Cost Drivers (cont.) • Compensation and Recruitment: › Highly competitive labor market › Some Sanitation Truck Operator positions vacant 12+ months › Recommended changes to operating salaries and associated benefits • Competition: long lead times for materials, supplies, equipment and vehicles › Inflationary increases on all business expenditures 17  Projected Operating Expenses 18  Proposed Vehicle Replacement Timeline 2023 2025 • FEL 45 • CLAM 66 (14 YRS.) (8 YRS.) 2029 • ASL 50 • REAR 42 • CLAM 68 (14 YRS.) (20 YRS.) (8 YRS.) 2024 2026 • FEL 44 • FEL 56 (8 YRS.) (7 YRS.) • ASL 51 • ASL 58 (8 YRS.) (7 YRS.) • CLAM 67 (8 YRS.) 19  Projected Loan & Lease Payments 20  Proposed Reserve Requirements • Based on discussions with Town staff, we established funding of an allowance account for contractual debris removal expenses for storm events › Transfer of $250,000 in FY24 as initial deposit › Nominal annual deposits of approx. $7,900 per year to keep pace with inflation (3% per year) • Minimum balance in unrestricted operating fund of 60 days of annual expenditures as minimum target in FY24 › Additional deposits to the operating fund over the study period to target at least 90 days of reserves 21  Adequacy of Existing Rates 22  Proposed Solid Waste Rates Description FY24 FY25 FY26 FY27 FY28 Funds Total Program Percent Rate Increase 48% 3% 3% 3% 3% Proposed Annual Charge per Cart $382.39 $393.86 $405.68 $417.85 $430.38 (Current Fee $258.37) Proposed Charge per Cubic Yard (CY) – Per Dumpster Size / Per Frequency of Pickup $16.74 $17.24 $17.76 $18.29 $18.84 (Current Fee $11.31) Sample – Monthly Fees for Dumpster Services 2 CY Dumpster – 1 Pickup / Week ($98.02) $145.08 $149.41 $153.92 $158.51 $163.28 4 CY Dumpster – 1 Pickup / Week ($196.04) $290.16 $298.83 $307.84 $317.03 $326.56 6 CY Dumpster – 1 Pickup / Week ($294.06) $435.24 $448.24 $461.76 $475.54 $489.84 • A schedule of proposed fees included at the end of this Executive Summary 23  Conclusions & Recommendations 1. The Solid Waste Utility should operate as a self-supporting enterprise fund with separate accounting from other Town departments › Town has consistently used operating reserves to cover actual expenses, but those reserves have been mostly depleted › Existing rates are not adequate to cover the current operations 24  Conclusions & Recommendations 2. On or about January 18, 2023, the Town Commission adopted an ordinance that moves multi-family dumpster accounts to the standard dumpster rates › The projected financial results were prepared based on the adopted service classifications › The Town Commission should consider adopting the proposed rates through FY28 25  Conclusions & Recommendations (cont.) 3. The Town Commission should consider adopting a reserve policy for the Solid Waste Utility to provide working capital and to help address unforeseen contingencies › We recommend a target operating reserve balance of at least 90 days of annual expenditures that may be achieved by FY26 if the adopted rates are implemented › A separate contingency fund of $250,000 for emergency, debris removal should also be established 4. This study should be updated within 5-years 26  Next Steps & Timeline • January-May 2023: Solid Waste Rate Analysis • June 8, 2023: Follow-up Meeting on the Solid Waste Rate Analysis • June 21, 2023: Presentation to Town Commission on findings and recommendations from Solid Waste rate analysis (for discussion only) • July 28, 2023: Town submits maximum proposed Solid Waste assessment rates to PB County (TRIM Notice) • August 2023: Fee Schedule Resolution presented for approval • August 18, 2023: TRIM Notices mailed to all taxpayers • September 2023: Town submits approved Solid Waste assessment rates • November 1, 2023: Tax bill sent to all taxpayers 27  Questions & Comments 28  Proposed FY-24 Dumpster Fee Schedule Cubic Yards 1x/Week 2x/Week 3x/Week 4x/Week 5x/Week 0.5 --- 72.54 --- --- --- 2 145.08 290.16 435.24 580.32 725.40 3 217.62 435.24 652.86 870.48 1088.10 4 290.16 580.32 870.48 1160.64 1450.80 6 435.24 870.48 1305.72 1740.96 2176.20 8 580.32 1160.64 1740.96 2321.28 2901.60 • Fee per EA (1) dumpster • Fees billed monthly directly to customers utilizing dumpster services. 29  Appendix: June 8, 2023 Workshop Presentation 30  Town of Lake Park Solid Waste Utility Follow-Up Meeting on the 2023 Solid Waste Rate Study Public Works Department June 8, 2023 31 Please Scan to View this Presentation on your Device.  Follow-Up Meeting Agenda 1. Introductions 8. Summary of Current 2. Solid Waste Utility Background Operations 3. Solid Waste Utility Operations 9. Conclusions and 4. The Solid Waste Utility Rate Recommendations Analysis 10. Q&A 5. Principal Cost Drivers 11. Closing Comments 6. Study Objectives & Tasks 7. Major Study Assumptions 33  Project Team • Members of the Town Commission • John D’Agostino – Town Manager • Roberto Travieso – Public Works Director • Jeff Duvall – Finance Director • Dwayne Bell – Public Works Operations Manager • Fensely Wisdom and Jackie Harris – Sanitation Foremen • Murray Hamilton – Vice President, Raftelis • Shawn Ocasio – Manager, Raftelis 34  Solid Waste Utility – Background • Collects solid waste from residential and commercial properties • First line of defense for the health of the community • Protects the environment, avoids air/water contamination, and recovers materials through recycling processes 35  Solid Waste Utility – Background • 2021/2022 Mixed-Solid Waste Collection and Disposal Production: › 30.6-Million pounds of garbage › 8.9 Million pounds of bulky trash/vegetation debris › 2.3 Million pounds of recyclable materials 36  Solid Waste Utility – Background • Provides a variety of educational opportunities during public outreach events • Provides Roll-off disposal services through franchise agreements with three (3) haulers • Partners with national, regional and local public/private organizations for continuous process improvement 37  Solid Waste Utility – Background • Where does your trash go? › All solid waste and vegetation debris is transported to Palm Beach County Solid Waste Authority’s (SWA) North County Transfer Station › Recyclable materials are sorted, packaged and commercialized › Solid waste is incinerated to generate electrical energy; leftover materials are neutralized stored underground. 38  Solid Waste Utility – Background (cont.) • Authorized Staff: Nine (9) full-time employees: › Supervisors (2) › Sanitation Truck Operator I (3) (Some vacant 12 months) › Sanitation Truck Operator II (3) (Some vacant 12+ months) › Sanitation Truck Operator Trainee (1) 39  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division is assigned ten (10) collection trucks: Automatic Side Loader (ASL) › Primary Uses: Residential Garbage, Recycling › Inventory: Four (4) › Average Yrs. in Service: 6.5 Yrs. 40  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division also operates: Front-End Loader (FEL) › Primary Uses: Commercial Garbage, Recycling › Inventory: Four (4) › Average Yrs. in Service: 6.5 Yrs. 41  Solid Waste Utility – Background (cont.) • Fleet Inventory • The Solid Waste Division also operates: Clam Truck › Primary Uses: Residential Vegetation Debris and Bulk Trash › Inventory: Three (3) › Average Yrs. in Service: 5.75 Yrs. 42  Solid Waste Utility – Background (cont.) • Fleet Inventory › Recommended Equipment Backup Ratio per Solid Waste Association of North America (SWANA): 1:1.2/1:1.5 Needed for Asset (# in Fleet) 1:1.2 Ratio 1:1.5 Ratio Daily Operations Automatic Side Loader 2 2.4 3 Front-End Loader 2 2.4 3 Grapple (Clamshell) Truck 2 2.4 3 Rear Loader 0 1.2 1.5 43  Solid Waste Utility – Background (cont.) • Operates as a self-supporting enterprise fund with separate accounting from other Town departments and resources • Town has historically used operating reserves to cover actual expenses that exceeded the budgeted amounts while phasing in rate adjustments over time Historical Sanitation Annual Assessment- Residential Assessment Year Single-Family/Multi-Family <5 Multi-Family >4 2019-2020 $215.49 $145.93 2020-2021 $234.88 $159.06 2021-2022 $234.88 $159.06 2022-2023 $246.62 $167.01 2022-2023 $258.37 $174.97 44  The 2023 Solid Waste Utility Rate Analysis  Solid Waste Program Requirements • Total program needs through FY28 are estimated to exceed $20.0 million 46  Principal Cost Drivers • Current operating deficiency › FY23 operating expenses exceed current revenues by approximately $250,000 (12% of existing rates) • High costs, frequency and severity of mechanical, fleet repairs › Service Interruptions – Emergency contract operations / limited providers – Urgent and specialized repair needs / sole source providers with little competition  Unable to shop around repair costs 47  Principal Cost Drivers (cont.) • Compensation and Recruitment: › Highly competitive labor market › Some Sanitation Truck Operator positions vacant 12+ months › Recommended changes to operating salaries and associated benefits • Competition: long lead times for materials, supplies, equipment and vehicles › Inflationary increases on all business expenditures 48  Authorization • The Solid Waste Utility has almost exhausted its reserves › Unappropriated reserve fund balance at the end of FY23 is estimated to be less than $265,000 • On January 18, 2023, the Town Commission engaged Raftelis to prepare a Solid Waste Utility Rate Analysis 49  Study Objectives • Develop a funding strategy to pay for Solid Waste Utility operations, maintenance and vehicle replacement needs › Emphasis on improving the fleet replacement schedule to provide higher service reliability, reduce costs related to service interruptions, and reduce maintenance expenses – Proposed strategy may also result in higher auction values at the time of resale which may be reinvested in the system • Estimate revenue requirements to be recovered from solid waste rates • Identify the need for future rate adjustments 50  Study Tasks • Prepare a financial forecast › Fiscal years 2023 through 2028 • Develop projections of: › Disposal requirements and revenues › Operating expenses › Fleet replacement program & funding › Cash reserve requirements › Adequacy of revenues at existing rates 51  Discussion Topics Major Study Assumptions Revenues and Expenses Capital Leases and Minor Equipment Summary of Current Operations Conclusions & Recommendations 52  Projected Revenues • Annual revenues estimated at $2.2 million per year › Most residential property owners take advantage of the 4% discount by paying early • Assumed 1% growth in residential and multifamily cart services • Growth in dumpster accounts based on development projections provided by Town staff 53  Projected Operating Expenses • Based on the adopted FY23 budget of $2.2 million [*] › Adjustment made to disposal costs based on an estimated increase in the tonnage for 2023 of +$92K › Adjustment for operating and revenue contingencies of $27K • (1) Additional Sanitation Truck Operator II to be hired in FY25 › New operator required to support future customers connecting to the system based on planned development projects • (1) Additional Solid Waste Code Officer to be hired in FY25 • Projections include costs associated with fleet repairs and maintenance over the study period _____ [*] Excludes capital outlay, capital lease installments, and loan payments to General Fund. [K] Thousands 54  Projected Operating Expenses (cont.) • Budgeted expenses beyond FY23 were increased based on estimated inflationary allowances as follows: › Labor: 11% (FY24); then 4% per year › Health & Liability Insurance: 15% per year › Fuel & Utilities: 5% per year › General Inflation: 3% per year 55  Vehicle Replacements & Minor Equipment • Total vehicle replacement / capital program of $4.0 million › Replacement of 10 trucks - $3.9 million (proposed capital leases) – 3 Front end loader trucks – 3 Side loader trucks – 3 Grapple trucks – 1 Rear loader trucks › Other capital outlay - $0.1 million (rate funded) – Minor equipment and machinery 56  Proposed Vehicle Replacement Timeline 2023 2025 • FEL 45 • CLAM 66 (14 YRS.) (8 YRS.) 2029 • ASL 50 • REAR 42 • CLAM 68 (14 YRS.) (20 YRS.) (8 YRS.) 2024 2026 • FEL 44 • FEL 56 (8 YRS.) (7 YRS.) • ASL 51 • ASL 58 (8 YRS.) (7 YRS.) • CLAM 67 (8 YRS.) 57  Projected Loans & Lease Payments • Existing annual loan and lease payments of $161,000 in FY23 decreasing to $0 by FY26 › Existing Side Loader lease of $65,000 ends in FY24 › Existing Mack MD7 Grapple Truck lease of $65,000 ends in FY25 › General Fund Loan of $31,000 ends in FY26 • Proposed annual capital lease payments starting in FY24 at $239,000 and increasing to $768,000 by FY28 › All proposed capital leases assume 4-year payback term and interest rate between 5.99% - 6.75% 58  Projected Loan & Lease Payments (cont.) 59  Other Revenue Requirements • Based on discussions with Town staff, we established funding of an allowance account for contractual debris removal expenses for storm events › Transfer of $250,000 in FY24 as initial deposit › Nominal annual deposits of approx. $7,900 per year to keep pace with inflation (3% per year) • Minimum balance in unrestricted operating fund of 60 days of annual expenditures as minimum target in FY24 › Additional deposits to the operating fund over the study period to target at least 90 days of reserves 60  Adequacy of Existing Rates 61  Proposed Solid Waste Rates Description FY24 FY25 FY26 FY27 FY28 Funds Total Program Percent Rate Increase 48% 3% 3% 3% 3% Proposed Annual Charge per Cart $382.39 $393.86 $405.68 $417.85 $430.38 (Current Fee $258.37) Proposed Charge per Cubic Yard (CY) – Per Dumpster Size / Per Frequency of Pickup $16.74 $17.24 $17.76 $18.29 $18.84 (Current Fee $11.31) Sample – Monthly Fees for Dumpster Services 2 CY Dumpster – 1 Pickup / Week ($98.02) $145.08 $149.41 $153.92 $158.51 $163.28 4 CY Dumpster – 1 Pickup / Week ($196.04) $290.16 $298.83 $307.84 $317.03 $326.56 6 CY Dumpster – 1 Pickup / Week ($294.06) $435.24 $448.24 $461.76 $475.54 $489.84 62  Conclusions & Recommendations 1. The Solid Waste Utility should operate as a self-supporting enterprise fund with separate accounting from other Town departments › Town has consistently used operating reserves to cover actual expenses, but those reserves have been mostly depleted › Existing rates are not adequate to cover the current operations 63  Conclusions & Recommendations 2. On or about January 18, 2023, the Town Commission adopted an ordinance that moves multi-family dumpster accounts to the standard dumpster rates › The projected financial results were prepared based on the adopted service classifications › The Town Commission should consider adopting the proposed rates through FY28 64  Conclusions & Recommendations (cont.) 3. The Town Commission should consider adopting a reserve policy for the Solid Waste Utility to provide working capital and to help address unforeseen contingencies › We recommend a target operating reserve balance of at least 90 days of annual expenditures that may be achieved by FY26 if the adopted rates are implemented › A separate contingency fund of $250,000 for emergency, debris removal should also be established 4. This study should be updated within 5-years 65  & 66  Next Steps & Timeline • January-May 2023: Solid Waste Rate Analysis • June 8, 2023: Follow-up Meeting on the Solid Waste Rate Analysis • June 21, 2023: Presentation to Town Commission on findings and recommendations from Solid Waste rate analysis (for discussion only) • July 28, 2023: Town submits maximum proposed Solid Waste assessment rates to PB County (TRIM Notice) • August 2023: Fee Schedule Resolution presented for approval • August 18, 2023: TRIM Notices mailed to all taxpayers • September 2023: Town submits approved Solid Waste assessment rates • November 1, 2023: Tax bill sent to all taxpayers 67  Connect with Us! • New Service Request Portal › Request Service › Report Issues (561) 881-3345 publicworks@lakeparkflorida.gov SCAN AND BOOKMARK ME! 68  Exhibit C Town of Lake Park Stormwater Utility The 2023 Rate Study Public Works Department June 7, 2023 1  Project Milestones • On January 18, 2023, the Town Commission engaged Raftelis to prepare a stormwater rate study • Town staff held a special workshop for residents and business owners on May 18, 2023 › A total of 3,687 Public notices (in three languages) were mailed two weeks prior to event; added to Town’s website in April 2023 › The agenda and presentation materials were made available on the Town’s website on May 17, 2023 › The presentation was also recorded for those who could not join the meeting in person 2  May 18th Workshop – Discussion Topics 1. Introductions 8. Summary of Current 2. Stormwater Utility Background Operations 3. Stormwater Utility Operations 9. Master Plan Funding 4. The Stormwater Utility Rate Requirements Analysis 10. Conclusions and 5. Principal Cost Drivers Recommendations 6. Study Objectives & Tasks 11. Q&A 7. Major Study Assumptions 12. Closing Comments 3  Executive Summary 4  Stormwater Utility – Background • Required to manage stormwater runoff › Improves quality of stormwater discharges by removing pollutants › Protects the environment and wildlife habitat › Protects public/private property from flood damage • Drainage system consists mostly of grassed swales for conveyance of runoff to catch basins and underground pipes/structures. • System discharges through 15 major outfalls to the Lake Worth Lagoon and the C‐17 Canal. 5  Stormwater Utility – Background (cont.) • Utility is permitted/regulated by Florida DEP. • Aging drainage infrastructure is failing at a faster rate. › An estimated 20% of the 10.6 miles of pipe infrastructure should be replaced immediately › Remaining pipe will need to replaced over the next 20 years 6  Stormwater Utility – Background (cont.) • Climate Change and Sea-level Rise › Climate change and environmental stressors pose a challenge to the drainage system’s capacity to handle storm events of both small and large magnitude. › NOAA: Land/Ocean temperatures Ft. Lauderdale Int’l Airport, April 2023 have increased an average of 0.14 degrees Fahrenheit per decade since 1880. – Predicts a 20-30% increase in extreme precipitation by 2050. 7  Stormwater Utility – Background (cont.) • Operates as a self-supporting enterprise fund with separate accounting from other Town departments and resources • Town has historically used operating reserves to cover actual expenses that exceeded the budgeted amounts while phasing in rate adjustments over time Historical Monthly Rates per Equivalent Stormwater Unit (ESU) Assessment Year Monthly Annual 2018-2019 $11.00 $132.00 2019-2020 $12.00 $144.00 2020-2021 $12.00 $144.00 2021-2022 $12.50 $150.00 8 2022-2023 $13.50 $162.00  The 2023 Stormwater Utility Rate Study  Stormwater Program Requirements • Total program needs through FY28 are estimated to exceed $18.6 million 10  Projected Revenues • Annual revenues estimated at $1.1 million per year › Most property owners take advantage of the 4% discount by paying early • Due to changes in land use, the overall ESU count has decreased in recent years • Town’s Stormwater Engineer provided a preliminary list of property developments that would add more than 600 new ESUs over study period. 11  Principal Cost Drivers • Current operating deficiency › FY23 operating expenses exceed current revenues by approximately $250,000 (24% of existing rates) • High costs, frequency and severity of mechanical repairs. Replacement of major components due to aging fleet. 12  Principal Cost Drivers (cont.) • Compensation and Recruitment: › Highly competitive labor market › Stormwater Technician II positions vacant 18+ months › Recommended changes to operating salaries and associated benefits • Competition: long lead times for materials, supplies, equipment and vehicles › Inflationary increases on all business expenditures 13  Principal Cost Drivers (cont.) • Increased infrastructure repairs and maintenance costs › Cure-in-place pipe / pipe replacements • Newly identified master plan improvement projects › Result of 20-year Needs Assessment, as required by State Law 14  Projected Operating Expenses 15  Capital Leases • Existing Street Sweeper lease of $55,000 ends in FY24 • Town staff provided a list of vehicle replacements with the following estimated lease payments: Proposed Vehicle Replacements Vehicle Name Year Replacement Lead Lease Acquired Year Time Payment [*] New Holland Skid Steer / Loader 2006 2024 2025 $75,000[**] Vac-Con Vacuum Truck 2009 2024 2026 $190,000 Tymco Street Sweeper 2020 2026 2026 $92,000 _____ [*] Lease term assumed to be 4-years at a 5.27% annual interest rate. [**] One time payment of approximately $75,000.00. 16  Recurring Capital Outlay • Town staff provided a list of minor capital outlay and equipment funding of under $100,000 per year to address the following system needs: › Asset Management › Quick View Camera › Replacement Generator › Stormwater & Grounds Maintenance › Stormwater Heavy Equipment Transport › Stormwater and Equipment Maintenance › Pump Station Monitoring and Maintenance 17  Summary of Current Operations (Excludes Master Plan Improvement Projects) 18  Master Plan Improvement Projects • Town prepared a master plan to address the system’s deficiencies that were identified in the 20-year Needs Assessment › The Needs Assessment was prepared as required by State Law • Project improvements necessary to address system rehabilitation and resiliency total more than $20 million › Reflects the estimated “present value” expenditures before considering future cost increases resulting from inflation 19  Master Plan Improvement Projects (cont.) • For the study period, we included an allowance of approximately $1.2 million per year (FY24-28) › Based on discussions with Town staff, no grant revenues have been assumed in the near-term – Future grant awards, if any, must be used for selected improvements and typically require a “match” of utility funds › Town has a hired full-time grant writer who will assist the utility with applying for future grants 20  Total Funding for Proposed Capital Needs 21  Adequacy of Existing Rates 22  Exclusions: What costs are not captured in the rate study results? • System expansion into areas that do not have service yet › Town staff will seek grant funding • Unknown capital maintenance and replacement needs › Town staff only able to inspect up to 10% of the system in any year – Major unforeseen failures may be likely • Funding for emergencies › Study recommendations begin moving the utility to provide some cash reserves to meet minimum operating needs › Proposed rates may do little to create a sustainable, reserve fund to address emergencies 23  Proposed Stormwater Rates Description FY24 FY25 FY26 FY27 FY28 Funds Total Program (Including Master Plan Improvements) Percent Rate Increase 89% 26% 26% 13% 9% Proposed Monthly Charge per ESU $25.52 $32.16 $40.52 $45.79 $49.91 (Current Fee $13.50) Proposed Annual Assessment per ESU (Current $306.24 $385.92 $486.24 $549.48 $598.92 Fee $162.00) Key Benefits • Phased-in approach • Under certain conditions, rates may be • Utility becomes self-sufficient after FY-28 adjusted based on grants revenue • Builds Reserves over time 24  Conclusions & Recommendations 1. The stormwater utility should operate as a self-supporting enterprise fund with separate accounting from other Town departments › Town has consistently used operating reserves to cover actual expenses, but those reserves have been depleted 2. Town Commission should consider adopting a reserve policy for the stormwater utility to provide working capital and to help address unforeseen contingencies › We recommend a target reserve balance of at least 90 days of annual expenditures 25  Conclusions & Recommendations (cont.) 3. Existing rates are not adequate to cover the current operations › Additional adjustments are also needed to adequately fund the Town’s master plan improvement projects 4. Town Commission should consider borrowing a portion of the capital improvements in order to phase in the proposed assessments over time › The maximum proposed monthly rate is $49.91 per ESU or $598.92 annually for each residential dwelling unit (FY-28) – A phase-in schedule is provided on Slide 37 5. This study should be updated within 5-years 26  Next Steps & Timeline • January-May 2023: Stormwater Rate Analysis • May 18, 2023: Follow-up Meeting on the Stormwater Rate Analysis • June 7, 2023: Presentation to Town Commission on findings and recommendations from Stormwater rate analysis (for discussion only) • July 28, 2023: Town submits maximum proposed Stormwater assessment rates to PB County (TRIM Notice) • August 2023: Fee Schedule Resolution presented for approval • August 18, 2023: TRIM Notices mailed to all taxpayers • September 2023: Town submits approved Stormwater assessment rates • November 1, 2023: Tax bill sent to all taxpayers 27  Questions & Comments 28  Appendix: May 18, 2023 Workshop Presentation 29  Town of Lake Park Stormwater Utility Follow-Up Meeting on the 2023 Stormwater Rate Study Public Works Department May 18, 2023 30 Please Scan to View this Presentation on your Device.  Follow-Up Meeting Agenda 1. Introductions 8. Summary of Current 2. Stormwater Utility Background Operations 3. Stormwater Utility Operations 9. Master Plan Funding 4. The Stormwater Utility Rate Requirements Analysis 10. Conclusions and 5. Principal Cost Drivers Recommendations 6. Study Objectives & Tasks 11. Q&A 7. Major Study Assumptions 12. Closing Comments 32  Project Team • Members of the Town Commission • John D’Agostino – Town Manager • Roberto Travieso – Public Works Director • Dwayne Bell – Operations Manager • Murray Hamilton – Vice President, Raftelis • John Wylie – Stormwater Infrastructure Foreman 33  Stormwater Utility – Background • Required to manage stormwater runoff › Improves quality of stormwater discharges by removing pollutants › Protects the environment and wildlife habitat › Protects public/private property from flood damage • Drainage system consists mostly of grassed swales for conveyance of runoff to catch basins and underground pipes/structures. • System discharges through 15 major outfalls to the Lake Worth Lagoon and the C‐17 Canal. 34  Stormwater Utility – Background (cont.) • Utility is permitted/regulated by Florida DEP. • Aging drainage infrastructure is failing at a faster rate. › An estimated 20% of the 10.6 miles of pipe infrastructure should be replaced immediately › Remaining pipe will need to replaced over the next 20 years 35 36  Stormwater Utility – Background (cont.) • Climate Change and Sea-level Rise › Climate change and environmental stressors pose a challenge to the drainage system’s capacity to handle storm events of both small and large magnitude. › NOAA: Land/Ocean temperatures Ft. Lauderdale Int’l Airport, April 2023 have increased an average of 0.14 degrees Fahrenheit per decade since 1880. – Predicts a 20-30% increase in extreme precipitation by 2050. 37  Stormwater Utility – Background (cont.) • Operates as a self-supporting enterprise fund with separate accounting from other Town departments and resources • Town has historically used operating reserves to cover actual expenses that exceeded the budgeted amounts while phasing in rate adjustments over time Historical Monthly Rates per Equivalent Stormwater Unit (ESU) Assessment Year Monthly Annual 2018-2019 $11.00 $132.00 2019-2020 $12.00 $144.00 2020-2021 $12.00 $144.00 2021-2022 $12.50 $150.00 38 2022-2023 $13.50 $162.00  Stormwater Utility – Background (cont.) • Authorized Staff: • Stormwater Maintenance Division is assigned four (4) full-time employees: › Supervisor › Stormwater Technician II (vacant 19 months) › Stormwater Technician II (vacant 7+ months) › Stormwater Technician I 39  Stormwater Utility – Background (cont.) • Assigned Equipment/Trucks: › Frequent out-of-service periods and operational disruptions › Recommended Service Life: 7 Years (Yrs.) Equipment Years in Service Years Past Service Life Street Sweeper (2020) 3 Yrs. N/A Vacuum Truck (2009) 14 Yrs. 7 Yrs. Backhoe (2008) 15 Yrs. 8 Yrs. Skid Steer Loader (2006) 17 Yrs. 10 Yrs. Farm Tractor (2006) 17 Yrs. 10 Yrs. Mower (2004) 19 Yrs. 12 Yrs. Average: 14 Yrs. 7 Yrs. 40  Stormwater Utility – Operations 41  Stormwater Utility – Operations (cont.) 42  The 2023 Stormwater Utility Rate Analysis  Stormwater Program Requirements • Total program needs through FY28 are estimated to exceed $18.6 million 44  Principal Cost Drivers • Current operating deficiency › FY23 operating expenses exceed current revenues by approximately $250,000 (24% of existing rates) • High costs, frequency and severity of mechanical repairs. Replacement of major components due to aging fleet. 45  Principal Cost Drivers (cont.) • Compensation and Recruitment: › Highly competitive labor market › Stormwater Technician II positions vacant 18+ months › Recommended changes to operating salaries and associated benefits • Competition: long lead times for materials, supplies, equipment and vehicles › Inflationary increases on all business expenditures 46  Principal Cost Drivers (cont.) • Increased infrastructure repairs and maintenance costs › Cure-in-place pipe / pipe replacements • Newly identified master plan improvement projects › Result of 20-year Needs Assessment, as required by State Law 47  Authorization • The stormwater utility has exhausted its reserve funds › Unappropriated reserve fund balance at the end of FY23 is estimated to be less than $100,000 • On January 18, 2023, the Town Commission engaged Raftelis to prepare a Stormwater Utility Rate Analysis 48  Study Objectives • Develop a funding strategy to pay for stormwater system operations, maintenance and capital repairs & upgrades › Emphasis on replacement of aging fleet and funding capital improvements to meet the drainage needs of the service area – Historically, stormwater rates were only established to recover operating expenses without any additional revenues for capital improvements • Estimate revenue requirements to be recovered from stormwater rates • Identify the need for future rate adjustments 49  Study Tasks • Prepare a financial forecast › Fiscal years 2023 through 2028 • Develop projections of: › Stormwater revenues › Operating expenses and capital lease payments › Capital improvement requirements & funding › Cash reserve requirements › Adequacy of revenues at existing rates 50  Discussion Topics Major Study Assumptions Revenues and Expenses Capital Leases and Minor Equipment Summary of Current Operations Evaluation of Master Plan Funding Requirements Conclusions & Recommendations 51  Stormwater Drainage Demographics • Over 10.65 miles of stormwater pipe • Serves approximately 3,000 properties or 6,600 equivalent stormwater units (ESUs) including all (developed) real property throughout the service area › Residential Properties – 1.0 ESU per dwelling unit › Non-residential Properties – ESU calculation for each property based on the impervious area of the property after considering applicable stormwater mitigation credits, if any – 1.0 ESU equals 5,202 square feet of impervious area 52  Projected Revenues • Annual revenues estimated at $1.1 million per year › Most property owners take advantage of the 4% discount by paying early • Due to changes in land use, the overall ESU count has decreased in recent years • Town’s Stormwater Engineer provided a preliminary list of property developments that would add more than 600 new ESUs over study period. 53  Projected Operating Expenses • Based on the adopted FY23 budget › Minor adjustments were also made to account for recent increases in utility costs and operating lease payments • (1) Additional Stormwater Technician II assumed to be hired in FY25 • Projections include a detailed plan to conduct operating repairs and maintenance over the study period › Significant investments in cure-in-place pipe / pipe replacements • Town plans to enter into an agreement to provide remote (SCADA) monitoring services for Lake Shore Drive Pump Station 54  Projected Operating Expenses (cont.) • Budgeted expenses beyond FY23 were increased based on estimated inflationary allowances as follows: › Labor: 15% (FY24); then 4% per year › Health & Liability Insurance: 15% per year › Fuel & Utilities: 5% per year › General Inflation: 3% per year 55  Capital Leases • Existing Street Sweeper lease of $55,000 ends in FY24 • Town staff provided a list of vehicle replacements with the following estimated lease payments: Proposed Vehicle Replacements Vehicle Name Year Replacement Lead Lease Acquired Year Time Payment [*] New Holland Skid Steer / Loader 2006 2024 2025 $75,000[**] Vac-Con Vacuum Truck 2009 2024 2026 $190,000 Tymco Street Sweeper 2020 2026 2026 $92,000 _____ [*] Lease term assumed to be 4-years at a 5.27% annual interest rate. [**] One time payment of approximately $75,000.00. 56  Recurring Capital Outlay • Town staff provided a list of minor capital outlay and equipment funding of under $100,000 per year to address the following system needs: › Asset Management › Quick View Camera › Replacement Generator › Stormwater & Grounds Maintenance › Stormwater Heavy Equipment Transport › Stormwater and Equipment Maintenance › Pump Station Monitoring and Maintenance 57  Projected Lease Payments & Capital Outlay 58  Summary of Current Operations (Excludes Master Plan Improvement Projects) 59  Master Plan Improvement Projects • Town prepared a master plan to address the system’s deficiencies that were identified in the 20-year Needs Assessment › The Needs Assessment was prepared as required by State Law • Project improvements necessary to address system rehabilitation and resiliency total more than $20 million › Reflects the estimated “present value” expenditures before considering future cost increases resulting from inflation 60  Master Plan Improvement Projects (cont.) • For the study period, we included an allowance of approximately $1.2 million per year (FY24-28) › Based on discussions with Town staff, no grant revenues have been assumed in the near-term – Future grant awards, if any, must be used for selected improvements and typically require a “match” of utility funds › Town has a hired full-time grant writer who will assist the utility with applying for future grants 61  Total Funding for Proposed Capital Needs 62  Financing Assumptions • Based on discussion with Town staff, we assumed the following borrowing terms: › 15 years at 5% annual interest cost – Included a 3% allowance for financing costs › Series 2024 Long-term Debt assumed issued Jan. 2024 – $2.4 million loan / $235,000 annual payment › Series 2027 Long-term Debt assumed issued Oct. 2026 – $0.5 million loan / $50,000 annual payment NOTE: Actual terms will be negotiated at the time the loan is issued. 63  Adequacy of Existing Rates 64  Exclusions: What costs are not captured in the rate study results? • System expansion into areas that do not have service yet › Town staff will seek grant funding • Unknown capital maintenance and replacement needs › Town staff only able to inspect up to 10% of the system in any year – Major unforeseen failures may be likely • Funding for emergencies › Study recommendations begin moving the utility to provide some cash reserves to meet minimum operating needs › Proposed rates may do little to create a sustainable, reserve fund to address emergencies 65  Proposed Stormwater Rates Description FY24 FY25 FY26 FY27 FY28 Funds Total Program (Including Master Plan Improvements) Percent Rate Increase 89% 26% 26% 13% 9% Proposed Monthly Charge per ESU $25.52 $32.16 $40.52 $45.79 $49.91 (Current Fee $13.50) Proposed Annual Assessment per ESU (Current $306.24 $385.92 $486.24 $549.48 $598.92 Fee $162.00) Key Benefits • Phased-in approach • Under certain conditions, rates may be • Utility becomes self-sufficient after FY-28 adjusted based on grants revenue • Builds Reserves over time 66  Summary of Program Requirements (FY28) 67  Conclusions & Recommendations 1. The stormwater utility should operate as a self-supporting enterprise fund with separate accounting from other Town departments › Town has consistently used operating reserves to cover actual expenses, but those reserves have been depleted 2. Town Commission should consider adopting a reserve policy for the stormwater utility to provide working capital and to help address unforeseen contingencies › We recommend a target reserve balance of at least 90 days of annual expenditures 68  Conclusions & Recommendations (cont.) 3. Existing rates are not adequate to cover the current operations › Additional adjustments are also needed to adequately fund the Town’s master plan improvement projects 4. Town Commission should consider borrowing a portion of the capital improvements in order to phase in the proposed assessments over time › The maximum proposed monthly rate is $49.91 per ESU or $598.92 annually for each residential dwelling unit (FY-28) – A phase-in schedule is provided on Slide 37 5. This study should be updated within 5-years 69  & 70  Next Steps & Timeline • January-May 2023: Stormwater Rate Analysis • May 18, 2023: Follow-up Meeting on the Stormwater Rate Analysis • June 7, 2023: Presentation to Town Commission on findings and recommendations from Stormwater rate analysis (for discussion only) • July 28, 2023: Town submits maximum proposed Stormwater assessment rates to PB County (TRIM Notice) • August 2023: Fee Schedule Resolution presented for approval • August 18, 2023: TRIM Notices mailed to all taxpayers • September 2023: Town submits approved Stormwater assessment rates • November 1, 2023: Tax bill sent to all taxpayers 71  Mitigating Stormwater Impacts • Implement Green Infrastructure on your property › Rain Gardens: Direct downspout stormwater runoff from roads into rain gardens prior to discharge into stormwater system › Rain Barrels: Collect rain for irrigation and other uses › Permeable pavers › Other strategies › Qualify for stormwater assessment credits 72  Connect with Us! • New Service Request Portal › Request Service › Report Issues (561) 657-3918 publicworks@lakeparkflorida.gov SCAN AND BOOKMARK ME! 73 Exhibit D Exhibit E