Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Monday, April 13, 2015 3:00 PM Village Hall Village Council Workshop Bob Margolis, Mayor John Greene, Vice Mayor Matt Willhite, Councilman Anne Gerwig, Councilwoman John T. McGovern, Councilman Village Council Workshop Action Summary - Final April 13, 2015 1. CALL TO ORDER Mayor Margolis called the meeting to order. at 3:00 p.m. 2. REVIEW OF COUNCIL AGENDA Mayor Margolis stated that he had received support over the weekend regarding his request for payment of legal expenses relating to ethics complaints; however, he was requesting that it be withdrawn from the agenda. Mr. Schofield presented the agenda for April 14, 2015 for review. APPOINTMENT OF VICE MAYOR Mr. Schofield indicated that by Charter the Village was required to elect a Vice Mayor at the first meeting in April. A. 15-148 PRESENTATION OF THE AMERICAN PUBLIC WORKS ASSOCIATION (APWA) ACCREDITATION AWARD TO THE VILLAGE OF WELLINGTON PUBLIC WORKS DEPARTMENT Mr. Schofield presented the item. There were no changes recommended. B. 15-265 RESOLUTION NO. R2015-26 (FLORIDA ROWING CENTER LICENSE AGREEMENT) A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL APPROVING A LICENSE AGREEMENT WITH THE FLORIDA ROWING CENTERS, LLC, A GEORGIA CORPORATION, TO OPERATE A ROWING SCHOOL ON THE WELLINGTON COMMUNITY CENTER PROPERTY; AND PROVIDING AN EFFECTIVE DATE. Mr. Schofield presented the item. He stated that the Village had a contract with Florida Rowing Centers for years and this item was a recommendation for renewal. Mayor Margolis pointed out that, in the past, this item had been a consent agenda item. Mr. Barnes explained that this was on Presentations because Mr. Wolfe wanted to thank Council for their ongoing relationship. Councilman Willhite asked if the entity understood that there would be a relocation for potentially a year due to construction. Mr. Barnes stated that the Village had worked out the logistics. There were no changes recommended. C. 15-263 MINUTES OF THE SPECIAL VILLAGE COUNCIL MEETING OF MARCH 16, 2015 AND THE REGULAR VILLAGE COUNCIL MEETING OF MARCH 24, 2015 Village of Wellington Page 1 Village Council Workshop Action Summary - Final April 13, 2015 Mr. Schofield presented the item. There were no changes recommended. D. 14-763 AUTHORIZATION TO UTILIZE A FLORIDA SHERIFFS ASSOCIATION (FSA) CONTRACT, AS A BASIS FOR PRICING, FOR THE PURCHASE OF TIRES AND RELATED SERVICES Mr. Schofield presented the item. He explained that these were the best prices staff could find. At this point, Councilman Willhite raised a question regarding the Minutes. He stated that he did not believe there was a Council consensus given for the Mayor to execute the quit claim deed. Mr. Schofield stated that he would have the Clerk review the tape to see if there was a correction that needed to be made. Mr. Schofield returned to the agenda item. Mr. Barnes explained that the tires were being provided by Martino Tire, Callahan Tire and Elpex Tire. He said that local vendors were contacted but none could match this price. There were no changes recommended. E. 15-38 AUTHORIZATION AND APPROVAL TO UTILIZE LAW ENFORCEMENT TRUST FUNDS (LETF) TO PURCHASE GPS TRACKING EQUIPMENT FOR THE PALM BEACH COUNTY SHERIFF’S OFFICE (DISTRICT 8 WELLINGTON) Mr. Schofield presented the item. He explained that Law Enforcement Trust Funds were funds that the Village receives through forfeitures and seizures during the Sheriff’s Department’s operations. The requests were consistent with statutory guidelines and there were sufficient funds to cover this. Councilman Willhite asked what was going to be GPS tracked. Mr. Schofield said that the department put the GPS into the squad cars as a transponding recording GPS. . Councilman Willhite asked if this would stay in Wellington. Mr. Schofield stated that it stayed in Wellington unless the item is taken out of the Village. Vice Mayor Greene asked what the balance of the fund was. Mr. Schofield believed it was close to $80,000. Vice Mayor Greene asked how the process worked for seized property. Mr. Schofield explained that some percent of seizures, but not all, come back to go into a law enforcement trust fund. He noted that this fund was not used very much. Vice Mayor Greene said that he had never seen any report as to what gets transferred into the fund. Ms. Quickel said that the total was an accumulation of about 10 years; however, she indicated that staff could run a report for Council to view. Vice Mayor Greene asked if property that is confiscated from Wellington, goes to the county and then a share is distributed back to the Village. Mr. Schofield said that the Village receives a percentage of it. Councilman Willhite said he had asked Mr. Schofield to see if money was available for an elevated observation police station. Mr. Schofield confirmed and said that he had made the suggestion for it as well. Councilman Willhite explained that the elevated observation station is something that the Village Village of Wellington Page 2 Village Council Workshop Action Summary - Final April 13, 2015 did not have, but could be helpful. He noted that the Sheriff’s Department does not have such an observation station. Councilwoman Gerwig asked whether or not the Village would fund body cameras. Mr. Schofield stated that a body camera was a PBSO decision. He explained that a bill relating to body cameras is working its way through the legislature, and comes short of actually requiring them. He said that departmentally PBSO had looked into using the body cameras. Mr. Schofield referred Council to Captain Hart. There were no changes recommended. F. 15-235 AUTHORIZATION TO UTILIZE LAW ENFORCEMENT TRUST FUNDS (LETF) FOR THE PURCHASE OF IN-VEHICLE SURVEILLANCE EQUIPMENT FOR THE PALM BEACH COUNTY SHERIFF’S OFFICE (DISTRICT 8 WELLINGTON) Mr. Schofield presented the item. He stated that the surveillance equipment would be in car cameras for District 8. There were no changes recommended. G. 14-594 RESOLUTION NO. R2015-09 (OS DRESSAGE PLAT) A RESOLUTION OF WELLINGTON, FLORIDA'S COUNCIL ACCEPTING AND APPROVING THE OS DRESSAGE PLAT FOR A 8.853 ACRE PARCEL LYING IN SECTION 33, TOWNSHIP 44 SOUTH, RANGE 41 EAST, VILLAGE OF WELLINGTON, PALM BEACH COUNTY, FLORIDA, BEING THE EAST HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 33, TOWNSHIP 44 SOUTH, RANGE 41 EAST, OF PALM BEACH COUNTY, FLORIDA; AND THE WEST HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 33, TOWNSHIP 44 SOUTH, RANGE 41 EAST, OF PALM BEACH COUNTY, FLORIDA; LESS THE NORTH AND EAST 50 FOOT CANAL RIGHTS-OF-WAYS. Mr. Schofield presented the item. He explained the location of the property. It is a straight-forward, final plat approval. Councilman Willhite said that he preferred having plats on the Regular Agenda. There were no changes recommended. H. 15-187 RESOLUTION NO. R2015-22 (GIOVANETTI VACATION/ABANDONMENT) A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL, VACATING A 16.83 FEET PORTION OF THE 25 FOOT WIDE MAINTENANCE EASEMENT LOCATED AT THE REAR OF LOT 25, Village of Wellington Page 3 Village Council Workshop Action Summary - Final April 13, 2015 BLOCK 51, OF SUGAR POND MANOR OF WELLINGTON PUD (14178 ASTER AVENUE); AND PROVIDING AN EFFECTIVE DATE. Mr. Schofield presented the item. He explained that this was a request by the homeowner to abandon 16.83 feet of a 25 foot maintenance easement located at the rear of the property that is adjacent to one of the canals. Mr. Schofield directed Council to page 164 and said that there was 29 feet to the edge of water to the edge of the right of way; an additional 25 foot maintenance easement; and when everything is done; there will be 40.1 feet from the edge of the deck to the edge of water. He noted that this was reviewed by Engineering. Mr. Riebe said that it was actually 37.1 from the edge of the water to the concrete. He said the Village tries to go between 35 and 40 feet. He said that they can go lower if the Village can accomplish what they need to do. Councilwoman Gerwig thought that it appeared as an existing fence was an encroachment into the Village’s right of way. She asked if the owners would remove that if the Village needed it to be removed. Mr. Riebe responded that they will be removing the fence indicating that as a part of this anything closer than 35 feet to the water would have to be removed. Councilman Willhite said he wanted to move this to the Regular Agenda. He asked if this owner was asking for the abandonment but no one on either side was asking for it. He questioned whether they were asking for this abandonment just to install a pool. Mr. Riebe believed that the pool already existed. Councilman Willhite clarified that the plan said that the pool was proposed; however, Councilman McGovern said it stated that the pool had been built. Mr. Riebe explained that this was to clean up the title. He said that the owner was trying to sell the lot but the pool was there and it encroached into the maintenance easement. Councilman Willhite stated that, in theory, the Village could make the owners remove the pool. Mr. Riebe said theoretically yes. Councilman Willhite asked how the pool was put in originally. Mr. Schofield said that prior to 2001 it was standard practice to issue the permits within the extend maintenance easements. He said that for the period from 1974 and 1996, there are Acme approvals for most of those. Councilman Willhite stated that the pool was stated as proposed with a date of December 2014. Mr. Riebe clarified that the pool was proposed. Councilman McGovern stated that the item included the pool, pool deck and enclosure. Councilman Willhite said that as of April 13, 2015 the pool was not there. Mr. Schofield confirmed. Councilman Willhite asked if the neighbors had already received an abandonment on their property. Mr. Barnes indicated that was not known. Mr. Schofield stated that since incorporation there had been 50 abandonments and 16 of them had been in Sugar Pond. He stated that the Village could find out exactly where the homes are located. Councilman Willhite asked if it was possible to set an exact limit for all of the residents to clean up the canal easements. Mr. Schofield stated that question had been asked repeatedly over the past 16 to 17 years. He said what the Village can do was to determine on a canal-by-canal basis if it can be done generically. Village of Wellington Page 4 Village Council Workshop Action Summary - Final April 13, 2015 Mayor Margolis requested that this item be placed on the Regular Agenda. Mr. Schofield stated that this item would become item F on the Regular Agenda. I. 15-272 ORDINANCE NO. 2015-06 (WELLINGTON MUNICIPAL ELECTION 2016) AN ORDINANCE OF WELLINGTON, FLORIDA’S COUNCIL MOVING THE DATE FOR THE MUNICIPAL ELECTION TO BE HELD CONCURRENT WITH THE PRESIDENTIAL PREFERENCE PRIMARY; AMENDING THE CANDIDATE QUALIFYING PERIOD; AND PROVIDING AN EFFECTIVE DATE. Mr. Schofield presented the item. He stated that the Governor had just signed a bill that moved the March 2016 election. Mr. Schofield indicated that the Village needed to make their municipal election consistent with the new date per state law. Mayor Margolis asked if all of the municipalities were following that recommendation. Mr. Schofield said that in reading the statute he didn’t believe the Village had a choice. Ms. Cohen indicated that Palm Beach had a problem with it. It was noted that Palm Beach will be holding its own election and will not be using Palm Beach County’s Supervisor of Election. Councilwoman Gerwig stated that if the Village wanted to do it differently it would be very difficult. There were no changes recommended. J. 15-266 RESOLUTION NO. R2015-27 (SADDLE TRAIL PARK SOUTH PROJECT ASSESSMENTS) A RESOLUTION OF THE VILLAGE COUNCIL FOR THE VILLAGE OF WELLINGTON AUTHORIZING THE SADDLE TRAIL PARK (SOUTH) NEIGHBORHOOD IMPROVEMENT PROJECT; EQUALIZING, APPROVING, CONFIRMING, IMPOSING AND LEVYING CERTAIN NON-AD VALOREM SPECIAL ASSESSMENTS ON THE REAL PROPERTY SPECIALLY BENEFITTED BY SUCH IMPROVEMENT PROJECT TO PAY THE COST THEREOF; PROVIDING FOR THE PAYMENT AND COLLECTION OF SUCH SPECIAL ASSESSMENTS BY THE METHODS PROVIDED FOR HEREIN AND PURSUANT TO CHAPTER SECTION 3, AS AMENDED, OF THE VILLAGE OF WELLINGTON’S CODE OF ORDINANCES AND APPLICABLE PROVISIONS OF CHAPTERS 170 AND 197, FLORIDA STATUTES; PROVIDING FOR SEVERABILITY, CONFLICTS AND AN EFFECTIVE DATE. Mr. Schofield introduced the item. Mr. Riebe presented the item. He explained that this resolution approves the special assessment, the assessment plat, the project plan, the methodology report, special benefits, cost benefit distribution, addresses the financing approach, and approves or disapproves the assessment roll. He indicated that this project had been in the process since early 2014 when a neighborhood Village of Wellington Page 5 Village Council Workshop Action Summary - Final April 13, 2015 group came in who wanted to do certain improvements within this neighborhood. The project was at the public hearing process. Mr. Riebe explained that the Village had conducted numerous public meetings, Council meetings, neighborhood meetings and Equestrian Preserve Committee meetings. He noted that they had distributed a lot of information about this project. Mr. Riebe said that the assessment plat had not changed noting that the only difference was that there are 103 lots compared to 105 when the ballots went out. He then showed a typical section of the street. He said that for this section, staff gathered input from the individuals who live in the neighborhood as well as the Equestrian Preserve Committee concerning the design of the project. He said that the project had not changed much since March when the typical section was sent out as a part of the balloting process. Essentially there was the same typical section, and the differences were there is a 3-rail fence along the bridle trail and a water main closer to the property line. Councilwoman Gerwig asked how wide the bridle trail was along Pierson Road. Mr. Riebe explained that the trail was about 12 feet wide. He noted that at one of the neighborhood meetings, staff actually laid out a typical section and the same was done at the Equestrian Preserve Committee meeting. Mr. Riebe then showed the overall plan of the project. He explained that the plan positions the bridle trail on the south side of Appaloosa Trail. He stated that the individuals on the north side of the road would have access to the legal bridle trail on the north side. Councilwoman Gerwig asked if that would provide every lot in the community with some portion of the bridle trail. Mr. Riebe pointed out that most properties have some portion. Mr. Riebe pointed out that there was a two-prong test to the special benefits process. One of which is that the benefit had to be specific or special to the property owners that are within the assessment plat. The methodology report indicated that there is a special benefit derived by the property owners within the assessment area, specifically roadways being in front of the house will be paved versus shell rock and there will be a water main. There are those things that will specifically benefit the property and not the community in general. Mr. Riebe then showed the methodology report including the distribution of benefits and costs. He indicated that staff was recommending distributing the benefits and costs on an acreage basis. With regard to the financing, Mr. Riebe explained that it was difficult to determine at this point in the process. He said that because they have to compare costs versus benefits, they used a very conservative approach determining costs. He said that the staff wanted to overstate cost. For benefits, Mr. Riebe said that staff would understate if possible. He said that they chose a model that was the least risk to Wellington and is the most conservative cost. Mr. Riebe explained that meant that the property owners would absorb all of the risk and they wouldn’t have the full faith and credit backing of the Village of Wellington which matters to investors. He said when that happens there are generally higher interest rates. Councilwoman Gerwig asked if the risk of that would make the bond agent go after each property owner that doesn’t pay which would make it more difficult for the property owner. Mr. Riebe said that was correct. He said that there was Village of Wellington Page 6 Village Council Workshop Action Summary - Final April 13, 2015 a provision in the bond whereby if the property owners don’t pay; the property owner is still responsible for paying principle interest payments every year. He said that means that the following year when the assessments go up or fluctuate, everyone else who does pay will absorb the ones that do not pay. He said there was a little more risk for everyone, and more expensive. He said that there would be a better rate if the Village of Wellington participated. Mayor Margolis stated that the Village had assisted in funding other projects before, i.e., Pink Wall. He noted that the Village had not participated in funding the Boys & Girls Club at 0% interest for 10 years; however, the Village gave them $700,000, the land and they funded the facility. He said that they were in the process of paying the Village back Councilwoman Gerwig pointed out that the Village owned the Boys & Girls Club facility and the land. She said that the Village would own the roads and the bridle trails so she understands the point Mayor Margolis was making. Mr. Schofield said that the Village had participated in project funding in the past. Mr. Riebe stated that his experience in these kinds of deal, since it is a grass roots effort that is not for profit, the local government serves as the backstop for the financing, meaning that the government doesn’t pay for the improvements but acts as an underwriter. Mayor Margolis asked if the Village decided to do that would it reduce the amount or cost that property owners were currently looking at. Mr. Riebe stated that was staff’s opinion at the moment. At this point, Mr. Mark Raymond explained who would take the risk of non-payment in the assessment. In one model an investor would take the risk. If the landowner did not pay the assessment and the tax collector cannot sell tax sale certificates on the property then that investor does not get paid back. In another model, the Village could pay for all of the improvements and could impose the assessments and collect the revenue, and, in that case the Village takes the risk. Mr. Raymond then said a model in between the two; the Village would borrow the money, pledge the assessments as the main source of repayment but guarantee it in some for by the Village. Ms. Natalie Sidor indicated that this model would allow a lower interest rate because investors would feel that comfort level of having the Village basically guaranteeing the debt service if the assessments aren’t there to pay it. Mayor Margolis said his understanding was that there would be a lower interest rate if the Village guaranteed this. Mr. Raymond explained that the assessments will bear interest at a rate most likely as the borrowing rate. Mayor Margolis indicated that he was looking for an alternative to reduce the assessment cost. Mr. Raymond stated that they did not know what the interest rate would be and wouldn’t know until Council is asked to approve a financing in the future. Councilman Willhite said that the Village would be obliged to go after the landowner who did not pay if they financed the project. Mr. Raymond explained that would be done by the Tax Collector. He said that the enforcement of assessments is through the uniform method the same as ad valorem taxes, so if the property owner does not pay, a tax certificate would be offered for sale. Village of Wellington Page 7 Village Council Workshop Action Summary - Final April 13, 2015 He said that the other aspect is where does the money come from that is used to pay the project. Mr. Raymond explained that one scenario, the Village already has the money in reserves and the Village pays for the project, and collects assessments from the landowners and pays itself back. In another scenario, they would have to borrow the money from somewhere, and what is being promised to the lender as a source of repayment. Ms. Quickel stated that this would be going back to Council for the actual authorizing resolution. She asked Mr. Raymond to review that for Council as well. Mr. Raymond stated that assuming that Council passed the resolution there would be a subsequent resolution which authorizes the debt. Council would then pass a perimeters resolution which sketches out how the bond issue would work, but it doesn’t have the interest rate, has a not-to-exceed amount, doesn’t have a final maturity, and they will then file a test case in the Circuit Court asking a judge to determine that the Village has done everything in accordance with the law up to this point in time. He said later on, if they are still proceeding, they will bid out the project, find out how much it will cost, a financing package would be put together, and they would come back to Council asking them to adopt a resolution authorizing the borrowing. Ms. Quickel said that is the point where they will determine exactly what type of bid and how it is structured. Mr. Riebe explained that the estimate of the benefits derived from the improvements equals $16.278 million which is comprised of reduced insurance premium due to the water main primarily, and fire premium would go from a class 9 to a class 2 which would represent a big savings. He said that there would be reduced maintenances cost which includes property, vehicle, the benefit over the life cycle of the road. In addition, there would be approximately a 5% increase in land values as a result of paving the roads and putting in water mains. Mr. Riebe reiterated that these are fairly conservative numbers. He said that the $16.278 million is what is listed on the preliminary assessment roll which is distributed on an acreage basis. Mr. Riebe stated that the improvement cost is approximately $5.455 million dollars. He said that when they did an estimate in March 2014, they estimated about $5.089 million. He said the $5.455 million includes a $384,000 contingency. Financing assumes that the Village would capitalize interest which means the Village would have to borrow money to pay the first couple interest payments for the bonds. It also assumes that the bond issuance would fund the debt service reserve fund at $664,000. Mr. Riebe stated that a conservative grand total was $7.296 million. This amount did not include water service initiation or private plumbing charges. Councilwoman Gerwig asked what the estimation of those service charges would be. Mr. Riebe said that staff estimated for properties of that size would be approximately $8,905 for the meter and a service connection of approximately $6,000 to plumb from the meter to the internal plumbing. K. 15-267 RESOLUTION NO. R2015-28 (SADDLE TRAIL PARK SOUTH BOND ISSUANCE) Village of Wellington Page 8 Village Council Workshop Action Summary - Final April 13, 2015 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF WELLINGTON, FLORIDA INITIALLY AUTHORIZING THE ISSUANCE IN ONE OR MORE SERIES OF NOT EXCEEDING $6,770,000 BONDS OF SUCH DISTRICT TO FINANCE THE COST OF IMPROVEMENTS WITH RESPECT TO THE SADDLE TRAIL PARK (SOUTH) NEIGHBORHOOD IMPROVEMENT PROJECT; PROVIDING THAT SUCH BONDS SHALL BE PAYABLE SOLELY FROM SPECIAL ASSESSMENTS LEVIED BY THE VILLAGE PURSUANT TO RESOLUTION NO. R2015-27 ON CERTAIN PROPERTY AS DESCRIBED THEREIN AND OTHER MONIES AS PROVIDED HEREIN; PROVIDING FOR THE RIGHTS, SECURITIES, AND REMEDIES FOR THE OWNERS OF SUCH BONDS; PROVIDING FOR THE CREATION OF SPECIAL FUNDS AND ACCOUNTS; MAKING CERTAIN COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. Mr. Schofield introduced the item. Councilwoman Gerwig asked what the recommendation would be if the Village moved forward. Mr. Raymond said that this was a decision Council would have to make. Mr. Schofield stated that the Village had several options: (1) the Village could enter into this where the bond is issued and it is not the Village of Wellington’s obligation which would result in higher interest rates; or (2) the Village could go into the bond market guaranteeing it which would create a lower interest rate. Council would then decide if they wanted to use specific reserve funds or if the Village had sufficient assets on hand. Mr. Schofield stated that the reserve fund would be set up for those who do not pay. He stated that he would not have a particular problem recommending that the Village guarantee that. Mr. Schofield stated that another option was for the Village to finance the project. Mr. Schofield asked Mr. Riebe to look at the total number of lots, the total number of people who voted no and provide Council a number. Mayor Margolis stated that previously a non-vote counted as a no vote but technically a non-vote is just a non-vote. Councilman McGovern stated that the number is 75% in regards to lots and 73% in regards to owners. Mr. Schofield recommended moving forward so the Village could explore the other methods. He indicated that up until the Village awards a contract Council has the ability to say no. Mayor Margolis asked for a time frame of that. Mr. Riebe said it could be as late as January/February of 2016 or as early as September/October 2015. Mr. Schofield stated that this would have to be done in the budget process and Council would have to make a decision by September. Mr. Riebe stated that, in terms of opposition, the Village had not received a Village of Wellington Page 9 Village Council Workshop Action Summary - Final April 13, 2015 significant amount of emails from those individuals who had never responded. L. 15-226 COUNCIL APPROVAL OF A CODE COMPLIANCE FINE REDUCTION FOR 970 CITRUS PLACE TO BE FORWARDED TO THE SPECIAL MAGISTRATE Mr. Schofield presented the item. He asked that this item and item M be pulled and remanded to the Special Magistrate, the reason being that the property owner rejected the staff offer. Ms. Cohen said that the remedy at this point was to go to the Special Magistrate, not to have Council make the decision. M. 15-254 COUNCIL APPROVAL OF A CODE COMPLIANCE FINE REDUCTION FOR 1333 SAILBOAT CIRCLE TO BE FORWARDED TO THE SPECIAL MAGISTRATE This item was requested to be pulled from the agenda. N. 15-109 AUTHORIZATION TO AWARD A CONTRACT TO PROVIDE COLLECTION OF SOLID WASTE AND RECYCLABLE MATERIAL Mr. Schofield introduced the item. Mr. De La Vega presented the item. He indicated that the Village’s current contract with Waste Management was scheduled to expire on September 30, 2015. In response to RFPs let in February, the Village received five proposals. The Selection Committee reviewed each proposal, and scored and ranked each one as follows: (1) Waste Management; (2) Advanced Disposal; (3) FCC SA; (4) Southern Waste Systems and Republic were tied for fourth. He noted that four Selection Committee members ranked Waste Management first; while one had them tied for first. The Committee recommended that the contract award be given to the highest ranked proposer that being Waste Management. Mr. De La Vega said that a pricing analysis was put together comparing the current rate to each proposers proposed rates for both commercial and residential. He noted that late last week, it was noticed that the analysis that was prepared included in the current rates, 5% Franchise Fee while the proposals did not include that fee. He said that staff prepared a revised proposal which was distributed to Council. He said that if they wanted to do an apples-to-apples comparison, no franchise fees as part of the current rates or part of the bids received. On the residential side, FCC SA was $309,000 less than the Village’s current contract; Advanced Disposal was approximately $33,000 more; Southern Waste Systems was approximately $65,000 more; Republic was approximately $406,000 more; and Waste Management was a savings of approximately $13,000 from the current residential contract. With regard to the commercial collection services: Mr. De La Vega noted that FCC SA had an annual decrease of $86,000 for commercial and combined with the residential savings, the total annual savings for both residential and commercial was $396,000; Advanced Disposal had a $20,000 on commercial for a total combined increase of $12,000; Southern Waste Systems had an increase of $775,000 on the commercial side had a total increase of $841,000; Republic was $150,000 increase for commercial with a $557,00 combined increase; and Waste Management had a $97,000 increase on the commercial side coupled with the $13,000 savings for residential for a total $84,000 increase. Mr. De La Vega said that they also wanted to provide Council with an analysis comparing the numbers if the Council wanted to renew the existing contract Village of Wellington Page 10 Village Council Workshop Action Summary - Final April 13, 2015 with Waste Management effective October 1, 2015 where there would have been a CPI increase. At this point, that would have had a 1.67% increase from 2014 to October 1, 2015. He said that they took the 1.67% and placed it on the current rates to show the difference. Mr. De La Vega said that FCC SA has a $361,000 savings for residential; Advanced had a $18,000 savings for residential; Southern Waste Systems had a $14,000 increase, Republic had a $354,000 increase and Waste Management had a $64,000 decrease on the residential side. He said that was comparing bids as to renew with the CPI increase. On the commercial side, FCC SA had a total resident/commercial of $479,000 savings; Advanced had a $70,000 savings; Southern Waste Systems had $758,000 increase; Republic had $474,000 increase and Waste Management had a $1,399 increase. Mr. De La Vega said that under all of these scenarios there was an additional $60,000 savings for garbage carts that the Village no longer is responsible for purchasing which is included as part of these numbers. He noted that the proposers also provided in-kind services which were included in the handouts. He pointed out that when you total the in-kind services for Waste Management they equate to about $40,000. Mr. De La Vega said that if the Council only wanted to look at Waste Management they were looking at almost a breakeven based on going out to bid as opposed to renew plus a $60,000 savings on the cart, and $40,000 benefit for a total of approximately $100,000 over a five-year term and possibly a seven-year term with renewals. Councilwoman Gerwig pointed out that the Village was already receiving in-kind services from Waste Management. Mr. Barnes explained that the plan in this case is that they were specifically listed in this contract whereas previously it was just a benefit that they were not responsible to provide. Vice Mayor Greene asked what the CPI was on the new contract. In response, Mr. De La Vega said it was 1.67% which is 80% of CPI. Vice Mayor Greene asked if staff has spoken with FCC SA, and were they confident that they could get up to speed if they were awarded the contract. Mr. Barnes said that staff had not spoken with FCC SA specifically, but only reviewed the technical information and he and Mr. De La Vega have also contacted their references. Mr. De La Vega said that staff had reached out to them via email with some questions in terms of secure assets, trucks, etc. He noted that as part of their proposal, they proposed a total of 14 trucks with 3 to 4 spares while all of the other proposers proposed 17-18 trucks with 3-4 spares. Mr. De La Vega also pointed out that FCC SA does not have a location in this area, and their proposal indicated that they would lease a building, and if awarded the contract, they would then lease the building, purchase the trucks, and hire the staff. He said that Mr. Wright visited the location that they included in their proposal and it is an empty warehouse at this point. Vice Mayor Greene said that when they made the decision to go out for RFP, the consensus of Council was that they were not going to compromise the quality of service. He asked if FCC SA could meet those standards. In response, Mr. De La Vega said he was certain that FCC SA knew the high standards that Wellington expects based on the RFP, but he could not speak for them as to whether or not they could perform. Vice Mayor Greene asked, if at the Council meeting, could Council direct staff Village of Wellington Page 11 Village Council Workshop Action Summary - Final April 13, 2015 not to award the contract, but to move forward a select a vendor to negotiate. Mr. De La Vega said that Council had the discretion to award a contract, decline all contracts or take other action. Mr. Schofield stated that Council could direct staff to negotiate. Mayor Margolis said in the past, a letter of reference was received from municipalities that the company had serviced. He asked if Council had received any such letters regarding FCC SA. Mr. De La Vega said that FCC SA has no clients in the United Stated, but a letter was received from Valencia, Spain who said they were a good company, and two were received from the UK. Mr. De La Vega said that the company does not do any similar work in the United State. He said that they do have a contract with the City of Houston, but it is a sludge hauling contract. Councilman Willhite stated that he did not believe that any actions taken by Council had lowered any standards for solid waste collection. He noted that they changed the critieria, but the standards were not changed. He said that one of the reasons to put this out was to save money for residents and businesses. Councilman Willhite said that he was concerned the company being recommended by the Selection Committee has a potential increase of $97,000 to businesses. He said that they had not even known about FCC SA which is a 100 year old company with billions of dollars in revenue who have now bid noting that he had asked staff if this was a company that should give them concern, i.e., Orchid Man. He thought that they have the opportunity with this company to potentially save the residents and businesses money. He asked if they were willing to take a chance with a very large corporation. He pointed out that the Sheriff’s Department has said that Wellington was their first contract and is their shining star. Councilman Willhite said Wellington could be that company for FCC SA. He pointed out that company will hire employees, move and relocate their supervisors, buy new vehicles. With regard to the number of trucks each company has, he said that the Village can’t know that 14 trucks won’t be sufficient versus 17 trucks. Councilman Willhite said that these are things he has to think about. He said that he was glad that the $60,000 cart purchase was calculated. He said that they have to consider not only the savings to the residents, but to the businesses as well. Councilwoman Gerwig thought that the companies thought it would be more enticing to the Village to lower the cost to residents because the Village is 95% residential. She indicated that she would be happy if Council gave the instruction to negotiate this contract and try to take the $60,000 the Village is getting and relieve the extra commercial fees. She thought that FCC SA was a well-known company worldwide; but that it is an anomaly that a bid comes in so much lower than everyone else. She thought that South Florida was pretty unique when it came to garbage. Councilwoman Gerwig did not believe it was good to take risk with a contract this size. She said that she did not see any reason to go against staff’s recommendation. Councilwoman Gerwig asked Mr. Wright what problems had the Village experienced with the former provider. In response, Mr. Wright said that the biggest difficulty was having older trucks which created a lot of hydraulic spills on the roadways. He said that they brought in new trucks with the last contract which changed everything as far as the spills. Mr. Wright said that the commercial end of this is all inclusive. He noted that there is a cart rental maintenance fee that the Village sets, so businesses will see their costs reduce Village of Wellington Page 12 Village Council Workshop Action Summary - Final April 13, 2015 anywhere from $20 to $27. Mr. Barnes said that everyone on the commercial side is estimated based on the volume whereas the residential is generally a fixed rate. Mayor Margolis asked if this was the first time FCC SA was getting involved in the solid waste removal business in this country. Mr. De La Vega said that as far as staff knew this was the first time. Mayor Margolis asked if they had bid on any other waste accounts in this country and what the result was. Mr. De La Vega said that they were aware of two bids. The first was North Miami Beach where they were deemed non-responsive because they were not registered to do business with the State among other reasons\; however, they have now registered. He said that they subsequently tried to bid on a contract with the City of Pompano Beach where they were ranked 4th out of 5. Mayor Margolis asked if they were a wholly-owned company or a subsidiary. Mr. De La Vega said that when they bid in North Miami Beach they were going to be a subsidiary of the larger FCC; however, now the bidder is the FCC parent corporation. Mayor Margolis asked if there were any other subsidiaries under the parent company. Mr. Barnes said that they have related industries in environmental services, and most of the experience they have in this country is design/build infrastructure projects. He said that the state project is a road project in Dade County. Mayor Margolis asked if FCC SA had put in a bid to Houston for their garbage contract. Mr. De La Vega said that was one of the questions that was asked of them and they indicated they were performing those services in Houston. However, when Mr. De La Vega reached out to Houston, staff was advised that they were aware of the sludge hauling contract, but not the solid waste contract. O. 15-223 OUTSIDE LEGAL FEES AND COSTS Mr. Schofield introduced the item. Ms. Cohen indicated that this item was not an increase as it was within the budgeted amount. The projection was that the Village would come in under budget. Mayor Margolis asked what cases the outside legal services were dealing with. Ms. Cohen said primarily Straub-related entities. Councilman McGovern asked what the total amount for outside legal fees was. Ms. Cohen said that the total for outside legal fees was for $400,000 for the year. There were no changes recommended. P. 15-264 REQUEST FOR PAYMENT OF LEGAL EXPENSES INCURRED BY MAYOR BOB MARGOLIS RELATING TO ETHICS COMPLAINTS This item was requested to be pulled from the agenda. 5. MANAGER COMMENTS Mr. Schofield presented the following report. C23 MULTI-USE PATH Village of Wellington Page 13 Village Council Workshop Action Summary - Final April 13, 2015 Mr. Schofield stated that the contract had previously been awarded for the C23 multi-use path. He said that the Village received a request from the Palm Beach Point HOA to move that crossing a little further north which they agreed to pay for. Mr. Schofield indicated that if Council wished to consider slowing the award of the contract, it could be done as a unit price, and it could be added to the next agenda. Councilman Willhite questioned why this was being brought back to Council. Mr. Schofield indicated that he would not bring it back up it that was Council’s desire. Councilwoman Gerwig asked if it would matter if Council had already authorized the engineer to do the project. Mr. Schofield stated that Council authorized Option B which moved the pathway north of the canal. He said that the HOA was asking for an additional 100 ft. which, by the staff’s estimation, did not do much. Councilwoman Gerwig thought that Council should look at it if it makes the pathway safer. Councilman Willhite stated that he did not think there was a safer aspect to it. He said that this topic was debated for months and was even delayed because of such long debates. Councilman Willhite indicated that he was concerned that the project would not get done through the summer if delayed any longer. Mr. Riebe said that the contractor will mobilize on the following Monday to start the work. He will start doing the culvert replacement which would take about 4 to 6 weeks to complete. Mr. Riebe said that the option proposed by the HOA was not going to make the trail less or more safe, but it addressed more of the esthetic issues. He said that the change was doable but they have not designed that option. He said that there are very limited resources for redesigns so staff would have to make sure that the HOA was serious about paying for it. He said that if they are, then the Village will expend the resources to do a redesign. Mayor Margolis asked what the cost would be to do this. Mr. Riebe estimated the cost to be somewhere between $0 and $78,000 although he believed it could be approximately $30,000 to $40,000 but he won’t know for sure until the redesign was done. Councilwoman Gerwig said that the HOA was only offering $10,000. Vice Mayor Greene stated that he didn’t want to do anything that would delay the project. He did not like that people were trying to change the parameters that Council discussed and approved. He said that he did not want to add any additional cost to the Village. Mr. Riebe explained that the only reason this was being brought before Council again was because the HOA had agreed to pay for the entire change. Mr. Schofield stated that he wanted to know if Council wanted him to bring it back to them for consideration. Councilwoman Gerwig said that she didn’t want it brought back to Council, but suggested letting Mr. Riebe handle it. She said if the HOA was willing to pay for the change and Mr. Riebe found it acceptable, then she did not see why it would have to come back to Council. Village of Wellington Page 14 Village Council Workshop Action Summary - Final April 13, 2015 Mr. Schofield suggested that staff will take a look at it. If the cost to modify it does not delay the project and does not exceed $25,000, then he and Mr. Riebe would make the decision without going back to Council. However, if the project was projected to exceed $25,000, he did not have the authority to make then decision, then they would come back to Council with a recommendation. He stated that the HOA has to agree to pay all costs of the relocation, cannot delay the project, under $25,000 it stays with staff, and over $25,000 the decision comes back to Council. Mayor Margolis asked if this would alter the contract. Mr. Schofield said no, as it is a unit price contract. VILLAGE-OWNED PROPERTIES BY PLAT Mr. Schofield addressed Council’s inquiries as to Village owned properties by plat. He showed a slide of all of the village-owned properties. He said that they would remove from the slides those areas that were not impacted by the case law and statute that says if the Village doesn’t use something for its intended purpose within 60 months, it would go away. Mr. Schofield then showed the vacant properties. The K Park; property was acquired by the Village next to C-51 noting they have title to it, but it wasn’t acquired as part of a plat process. They believe that in the late 60’s/early 70’s SFWMD might have been looking to expand the West Palm Beach canal, and the last is the remnants of Lake Worth Road from South Shore to Mida which is a part of what the developer has submitted as part of the Lake Worth extension to 40th Street which would not revert back. Mr. Schofield said that the Village doesn’t have an easement over Mida, but only a reservation, which needs to go back because the Village no longer has a purpose for that. Mr. Schofield said that the Village needs to consider what they are going to do with the strip along the West Palm Beach canal. He also pointed to an arear under the power lines noted that most of it is the Village’s canals and there is no danger of reverting. He noted the line is not continuous throughout the Village and noted that in some places, it is owned by the Village. He said that they will have to decide what to do with that property. He recommended that they keep it as it is. Mr. Schofield said that they reviewed every piece of Village-owned property and the only the part of Lake Worth Road that is subject to the reverter as the other roads are built. K-PARK TOWN HALL MEETINGS Mr. Schofield provided Council with a schedule for town meetings for K-Park with a list of potential questions. He said he would like each Councilmember to review the questions and provide any additional questions they might like to ask. 6. OLD BUSINESS Mr. Schofield provided Council with an old business review dating as far back as one year. He said that they were also going back and completing the prior year; however, it was not completed at this time. He indicated that AT&T would be providing videos for Village meetings by May 1st. He said that a couple recommendations were sent regarding family members and committee members. Mr. Schofield said that staff was recommending that Council not change it. However, if Council chose to there were two options that staff suggested, one being an absolute exclusion, and they also believe that the Village of Wellington Page 15 Village Council Workshop Action Summary - Final April 13, 2015 exclusion should not be the Council alone, but should include a minimum of senior staff. Since the Council is Village employees, the policy was written for Village employees. Councilman Willhite expressed concern about the prohibition of additional employees because they could be residents as well. He believed they should be able to have an impact on the community and have a choice on those boards. Councilman Willhite thought employees should be able to participate in their community as well. Councilman Willhite thought that Vice Mayor Greene had requested a section on the agenda as old business. Mr. Schofield said that they agreed that there would be a discussion at the Agenda Review. Vice Mayor Greene thought this was fine to get them current, but he wanted to see that when they discuss something that it shows up on the next Council agenda so they are aware of the direction. Mr. Schofield thought that this would be the opportunity for Council to see it, and then to provide direction to staff to put the item on the agenda. 4. ATTORNEY'S COMMENTS Ms. Cohen stated that she had received a call from the attorney representing Wellington Gardens and they had elected not to file a lawsuit. She said that would conclude any potential issues with the bidding related to the K-Park site. 7. COUNCIL COMMENTS None 3. WORKSHOP A. 15-287 TENNIS CENTER PROGRAM/FACILITY MAINTENANCE DELIVERY OPTIONS Mr. De La Vega presented the item. He said that the contract with Cheatham Inc. was set to expire on September 30, 2015 for the tennis center maintenance and management. The Village had previously extended his contract from the opening of the new facility up until September 30th in order to provide some transition time for Mr. Cheatham and provide continuity of the program. He indicated that staff had met with each Councilmember individually on this item. Mr. De La Vega explained that there initially were three different options for consideration. The first being the current program which was RFP based where there is a percentage back from revenue. The second was a 70/30 split which resulted in a consensus that this was not a viable option, so that was eliminated from this discussion. Mr. De La Vega said that they were down to two options: (1) the current program; and (2) bringing the entire operation in house. Mr. De La Vega said that staff had prepared an analysis based on anticipated revenue of $765,000 noting the current revenue as of FY2014 was $580,000 which was based on 16 courts at $36,000 each. He explained they came up with the $765,000 anticipated revenue by multiplying 21 courts by $36,000. Councilwoman Gerwig asked how many additional courts there were. Mr. De La Vega stated that there were 21 as opposed to 16. Village of Wellington Page 16 Village Council Workshop Action Summary - Final April 13, 2015 Mr. De La Vega said that with option one, the Village’s contract calls for providing the Village with 4% revenue. With a 4% revenue the Village would get about $30,600. As far as expenses, the Village pays Cheatham Inc. $110,000 to maintain the facility that has been included as part of the operating expense. He said that electric is estimated to be at $21,000 noting the current provider had that number at $26,500. Utilities, water and sewer, were estimated at $9,000, $5000 was for repairs, $4,300 for SWA not waste management for a total expense of approximately $175,000 with a loss under that program of $145,200. With bringing the operation of the tennis facility in-house, Mr. De La Vega said that the Village maintains the exact revenue of $765,000. However, that would require the Village to hire a tennis operations director at about $155,000 annually including benefits, two full-time and one part-time maintenance workers at approximately $137,000 including benefits, a full-time recreation coordinator at $77,000 including benefits, and a recreation assistant, one full-time and three part-time, at $117,500 including benefits. The Village would be responsible for paying the tennis professionals, approximately seven, at $50,000 per tennis pro. Mayor Margolis asked if the tennis pros would be Village employees or independent contractors. Mr. De La Vega said that they would be independent contractors with no benefits. He said that the tennis professionals would be approximately $350,000. Maintenance, utilities, repairs and trash would all be the same costs. In addition, since the Village would be taking over the full operation, they would have to pay for clay, materials and supplies, small equipment, postage, printing, advertising, office safety, special events, programs, and membership for a total expense of $934,000 which leaves the Village with a loss of approximately $170,000. When these numbers were calculated, all of the salary expenses were at the highest possible level for every one of the positions. From a budgeting standpoint they typically use the higher number including the highest available benefits to those employees. Mr. De La Vega said that this would be the worst case scenario. He said that those employees would start off at the highest possible salary range. Councilman Willhite asked between clay and memberships, did the Village know any of those numbers to be what was currently being done or was that an assessment of what the Village might need. Mr. De La Vega said that those were estimates that were currently being handled by Mr. Cheatham. Councilman Willhite said that Option 2 was a scenario that could still have Mr. Cheatham being the tennis operation director. He said that the concern was estimating the revenues and the programming. Councilman Willhite believed that the facility would be better run in house as it would be maintained to a higher standard. Mr. Barnes said that he didn’t think he nor Mr. DeLaney would disagree relating to anything that the Village runs in house as it affords the Village the greatest amount of control. Vice Mayor Greene asked who would do inspections to make sure the facility and property were being maintained to the proper standard. Mr. DeLaney said that currently the maintenance inspections were done through the Parks Division. They provide a quarterly report as to the types of maintenance that are being done currently. He said that everyone was aware that the existing facility is an aging/older facility which was the reason why the Council decided to build a new one and also to increase the number of courts. Village of Wellington Page 17 Village Council Workshop Action Summary - Final April 13, 2015 Vice Mayor Greene said the Village was spending a lot of money on this new facility. He said Mr. Cheatham had developed an incredible program with tremendous support, and he would hate to lose any continuity in this program as the new facility opens. He said his position was to expand the contract with Mr. Cheatham for another year and give him the confidence to go out and continue to promote and expand the program. Vice Mayor Greene asked how long Mr. Cheatham had been with the Village. Mr. Barnes indicated that Mr. Cheatham had been with the Village since incorporation and prior to that the program was operated at the Wellington West Club. Mr. DeLaney said that he didn’t think it would preclude Mr. Cheatham if he was interested in pursuing a tennis director position. He fully agreed with Vice Mayor Greene that continuity of the programming was important to the move. Due to the fact that the Village has a brand new facility, Mr. DeLaney thought that this may be the time to explore a different opportunity on the delivery and maybe bring that program totally in house. Vice Mayor Greene said he wouldn’t support a change at this point because he thought it would be beneficial if the Village moved forward and let this facility operate for a year which he thought would allow for a more accurate look at the revenues and the operation of the facility. Councilman McGovern asked if there were renewal options under the contract. Mr. Barnes said that the current contract did not contain a renewal option. Councilwoman Gerwig stated that this contract was unique as the Village did not have to go out to RFP on it because it is a unique facility. She supported what the Vice Mayor was saying regarding leaving the program intact before the Village tried to do anything different. Ms. Cohen pointed out that the Village of Wellington was an Equal Opportunity Employer, so there was no guarantee that Mr. Cheatham would be the individual that would be hired if the program was brought in-house. She confirmed that there was no renewal on the existing contract but there was no requirement under the purchasing policy that it would actually go out for bid noting that the Council made a decision several years ago to put it out for bid. Ms. Cohen stated that if Council believed that this was in the best interest if the Village it might be a good idea to extend the contract or to offer a one year contract. She said that the purchasing policy allows Council to forego the competitive solicitation that Council might otherwise go through. Mayor Margolis thought that continuity was important, and believed that employees of an organization have more of a vested interest than consultants. He asked if the program was originally under the auspices of an employee. Mr. Barnes didn’t believe that Mr. Cheatham was ever a statutory employee. Mr. Schofield thought that there was a point where Mr. Cheatham and his instructors were employees, but it was a mixed agreement where the Village paid them and gave them benefits but there were also certain things that they could keep, such as the pro shop and tennis lessons. The Council then directed the Village to stop that hybrid operation and go to something that was much clearer. He said that Council was able to significantly reduce costs but lost the income that comes with it. Mayor Margolis stated that he was in favor of Option 2 but if in fact Council Village of Wellington Page 18 Village Council Workshop Action Summary - Final April 13, 2015 would like to continue to provide the continuity with Mr. Cheatham, he would recommend that Council increased the contract to 2 years instead of 1 year. Councilman McGovern said that he did not support a 2 year contract, as he thought that the Village had no idea how this new facility would operate. He said he could see the benefit of Option 2 bringing the program in house and that should be the long term option that the Village should do; however, he was unsure that it needed to be done at this time. Councilman McGovern said he would support a 1 year extension and a revaluation in one year after the move to the new facility. He believed that this would be the smartest course of action. He thought that there were a lot of new options at the new facility that the Village was unsure about at this time. Vice Mayor Greene said that 16 months would give the Village a larger snapshot of the revenue and expense side of the facility. Regarding the continuity issue, the Village can accomplish the continuity either way. He thought one of the concerns was that even at a year extension, he did not know if that would provide the continuity that customers or potential contractor were looking for. Within that year many programs need to get off the ground. Councilman Willhite said that for consistency and continuity of the Village programming it would be best to bring the program in house. Councilwoman Gerwig stated that she was not comfortable with bringing the loss down from $169,000 to a $369,000 loss. Her concern was the consistency. Mayor Margolis stated that this item should be put on the agenda for further discussion and a vote unless Council had a 3-2 consensus to renew Mr. Cheatham’s contract for another year. Vice Mayor Greene asked if Mr. Cheatham expressed an interest in either option. Mr. Barnes stated that Mr. Cheatham would be good either way. Vice Mayor Greene said that the risk was not having Mr. Cheatham anymore if the position was posted. He thought that they should allow Mr. Cheatham to continue what he has done successfully, in 12-15 months, the Village will have enough data to support making a decision that is either keep it as it currently is or it is brought in house. Mr. Barnes said he would work on a new contract. 8. ADJOURN There being no further business the meeting was adjourned. Village of Wellington Page 19