Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Wednesday, June 3, 2020 9:00 AM DIRECTIONS WORKSHOP Wellington Community Center Village Council Workshop Anne Gerwig, Mayor Tanya Siskind, Vice Mayor John T. McGovern, Councilman Michael Drahos, Councilman Michael Napoleone, Councilman Village Council Workshop Action Summary - Final June 3, 2020 1. CALL TO ORDER Mayor Gerwig called the Directions Workshop to order at 9:00 a.m. 2. PLEDGE OF ALLEGIANCE Mayor Gerwig led the Pledge of Allegiance. 3. INTRODUCTION TO DIRECTIONS WORKSHOP Mr. Schofield welcomed everyone to the workshop. He stated staff has prepared an agenda. He said staff is available to answer Council ’s questions. Mr. Schofield stated Council provided the topics of discussion, so they can go through them and set the order of discussion. He said staff can display exhibits, aerials or drawings for most of the items on the list. 4. ECONOMIC IMPACTS PBC Property Appraiser Update with Dorothy Jacks Ms. Dorothy Jacks provided an update regarding valuations and the impact of COVID-19. She discussed the residential and commercial markets and the various issues that affect both. She stated they will continue to watch and see how the markets handle the summer and go into the fall. She asked everyone to consider a flat market for 2021. Ms. Jacks mentioned the value adjustment board. She discussed the process for objections to property values and the filing of petitions. The impact of COVID 19 will be in 2021 when the values of properties will adjust. She discussed Wellington’s parcels (22,909) and stated for 2020, $12,747,000 is the adjusted value. Taxable value is $8.8 billion with a change of 2.52%. She stated VOW is a residential community. 19,000 are residential; the remaining are condominiums. She stated there is a significant amount of agricultural properties. 8% of value is in commercial property. New construction is $8.8 million. Ms. Jacks briefly discussed the Wellington Green Mall. She stated malls are having a hard time and have been for years. There are some that are doing exceptionally well. She referenced the Palm Beach Gardens and Boca Raton Malls as well as the Palm Beach Outlets. She stated she is not able to say what will happen with the malls or what they will morph into at this time. She stated VOW has a number of middle to high residential properties and has huge support from the equestrian community. Village of Wellington Page 1 Village Council Workshop Action Summary - Final June 3, 2020 Mayor Gerwig stated she thinks the Village will see a migration to the suburbs again and asked Ms. Jacks if she knows anything about those numbers. Ms. Jacks stated that will be a long trend and stated people may be less likely to return to downtowns or want to live close to each other. Councilman Drahos stated mortgage rates dropped to tremendous lows . He asked about how that has impacted numbers. Ms. Jacks stated it encouraged persons to buy and the number is holding steady. She stated they are seeing more homesteading. She spoke regarding the interest rates and the impact on affordability. Councilman McGovern stated the impact of COVID on taxable values of properties will not come for another year. Ms. Jacks stated it will come this time next year in September or October and they will have a good picture of how long lasting this will be and the values that are certified to the Village next year will show that impact. She stated they will defend their January 1 date and referenced appeals processes as well as circuit court. She stated the school system is a real concern. Ms. Jacks said the state is relying on the values out of the counties. She stated there will be an adjustment in April 2021. Councilman McGovern thanked Ms. Jacks and stated her and her team are consummate professionals. He asked what the valuation of mall is for this year versus six months ago. Ms. Jacks stated it is now at $90 million. The 2019 number was reduced by $247 million. She stated this is a decrease from last year. Councilman Drahos stated his concern is that the mall will continue to challenge the rates and asked what the mall has done across the last five years. Ms. Jacks stated every mall petitions every year and this is standard practice. An average was about 4,000 petitions per year. 70% of petitions are commercial with some residential. She stated she is proud of what their petition numbers are. Ms. Jacks stated that they defend the values that they place on properties. She stated often the value of the restaurants or other entertainment types are actually not a part of the $ 90 million, they are separate. The issue with the out parcels around the mall is that they may not be a part of the $90 million. Mayor Gerwig stated they are not part of the $90 million. Village of Wellington Page 2 Village Council Workshop Action Summary - Final June 3, 2020 Ms. Quickel asked what the land value of the mall is versus the total value. Ms. Jacks stated they value the whole property as one and does not have a separate land value. She invited Council to come in to her office and discuss the mall further if they wish. Ms. Jacks stated the mall is certainly paying higher taxes and spoke regarding values and the tax system. Councilman McGovern stated we have 529 new properties added to the tax roll due to Binks Pointe and asked how this is added to the tax roll. Ms. Jacks said the law states when the property is substantially complete. She stated they have had instances where the builder does not get the property completed until January and it is added to the roll whether there is a CO or not. She stated they have been challenged on that in past and have prevailed. Councilman Napoleone stated he has been asked by residents about why property values in the Village are not increasing the way other properties are in other places. He asked if Ms. Jacks has any information that the Village could share with the residents. Ms. Jacks stated in July they will release the July 1 numbers that begin the tax roll cycle which has detail and then, in August they will mail the notice of property taxes to property owners and will show them what their taxes are. Vice Mayor Siskind thanked Ms. Jacks for her time and asked if they are adjusting their valuations due to COVID. Ms. Jacks replied that they are governed by Florida Statutes and they are valuating properties based on the January 1 date. She stated they are finishing up their work for the July 1 numbers. She stated Palm Beach County is considered an In Depth county this year by the Department of Revenue who is looking at the numbers carefully. Mayor Gerwig asked if agricultural values are adjusted per acre or differently. Ms. Jacks stated it is based on different types of classifications. She stated she will provide a list of the different classifications. Ms. Jacks briefly referenced Loxahatchee Groves. Mayor Gerwig thanked Ms. Jacks for her time and presentation. Village of Wellington Page 3 Village Council Workshop Action Summary - Final June 3, 2020 Housing Update with Dr. Ned Murray, PhD, AICP Dr. Murray stated the metropolitan sector is beginning a Palm Beach Countywide study and it will be a bit of a challenge due to COVID and the economies being impacted in communities. He stated they will have to keep an eye on that. He stated nobody knows for sure where this is headed and stated the best projection they can give now is what they can look for next year and what will play out over the next six months. Dr. Murray stated we have not experienced anything like this previously other than perhaps 9/11. He stated this recovery will be consumer and demand driven. He stated the April numbers in terms of real estate are beginning to show the impacts over the year. Dr. Murray stated these numbers are based on the Realtors Association numbers. They can only track the numbers month by month or weekly going forward. Councilman Napoleone asked what the Inventory/Active listing numbers reflect. Dr. Murray stated the numbers are Palm Beach County numbers. Mayor Gerwig asked if there is a way to get the Wellington numbers versus Palm Beach County. Dr. Murray stated they only have the Wellington numbers from last year. Dr. Murray continued to discuss the PBC April Distressed Market Single Family sales. He stated they expect foreclosure rates to increase. He discussed the April Townhouses and Condo sales from April 2019 to April 2020 and the percent change year over year. He highlighted the real time data for the PBC Multi-family market asking rent per unit. He stated they are projecting a considerable drop in asking rents as the year progresses with recovery in 2021. He stated they expect there will be a decline in rent values. Dr. Murray also discussed asking rent per square foot. He reviewed the Multi-family Occupancy and Market Rent per Unit and stated it is starting to drop. He discussed the multi-family rental vacancy and asking rent and stated rents are going down to try to maintain a high level of occupancy. He reviewed multi-family market rent per unit and rent growth. He stated it has dropped by about 30%. He stated they are beginning to look at Wellington existing owner supply/demand analysis. He stated the VOW’s values have increased. Dr. Murray said the overall value of single family properties have increased over a period of time since the last study. He stated the most recent update that they looked at was to take what they had done a few years ago and update it to include a higher range of income: mid-market range. Census only allows you to go up to $150,000 regarding households. He stated there is a slight surplus in this category to a range Village of Wellington Page 4 Village Council Workshop Action Summary - Final June 3, 2020 of $410,000-450,000 which shows a supply of 1,100 units in this price range with a surplus of 43 units. He stated they also conducted a rental supply analysis. He discussed the housing market demand regarding essential workers and growing technology workers in terms of the annual mean wage. He stated there is an average supply of housing but it is relatively small. Dr. Murray stated on the rental supply side, they found 1,500 households within the moderate income category of $70,000 to $136,000. He stated these persons may be prospective homebuyers. He referenced the previous inflow/outflow they conducted. Dr. Murray stated these are the available updates at this point regarding Wellington specifically. Councilman Napoleone asked what the takeaways are from this presentation. Mr. Schofield stated the largest single component of the Village’s budget is capital and taxes. He discussed the age of the housing stock and the age based break in the value of homes with houses constructed in the 1990’s. Mayor Gerwig asked if since the housing study was done anything has changed. She commented regarding housing numbers for certain professions. Mr. Schofield commented regarding first time homebuyers and renters. Councilman McGovern referenced the demand/supply analysis and asked about the surplus of properties. Mr. Schofield stated they look at the workforce number of $100,000. Councilman Napoleone asked about the types of homes. Vice Mayor Siskind stated she has spoken to realtors who indicate that there is not enough inventory in Wellington to sell. She stated when a home is put on the market in Wellington, there are at least 8 showings for that home by 12 noon. Mr. Schofield stated the median household income for Wellington is $90,000 per year. Councilman Napoleone asked what this report tells Wellington about whether additional rental property is needed in Wellington. Mayor Gerwig referenced a comparison to Jupiter since it is very similar to Wellington in other demographics. Village of Wellington Page 5 Village Council Workshop Action Summary - Final June 3, 2020 There was brief discussion regarding unit counts and rental homes. Mr. Schofield stated he will review these numbers and discuss this with Mr. O’Dell and Dr. Murray and come back to Council with this information. Mr. Schofield stated staff will be coming to Council with a budget amendment. He stated they are looking at an approximately $5 or $6 million budget shortfall. He stated the housing values are likely going to remain the same. The Palm Beach County Property Appraiser is asking the Village to hold those numbers flat. He stated properties are selling at the asking prices and property values are remaining flat. Mr. Schofield stated revenue sharing is down by about 50%. He stated the budget next year will be $101 million with a $5 million reduction. He discussed the budget and revenue projections. He stated the revenue reduction due to COVID could be approximately $20 to $30 million. Councilman Drahos asked what the reason for the budget amendment this year is. Mr. Schofield stated this is due to the $1 million reduction of user fees in Parks and Recreation and also revenue sharing is being reduced due to significantly reduced gas and sales taxes. Mr. Schofield stated the budget amendment will come before Council in July or August. He stated there will be a change in service models. Mayor Gerwig asked if we are expecting any federal relief. Ms. Quickel stated the Village is applying for the CARES Act grants. Mayor Gerwig stated she is impressed with the efforts of the Village in regards to staff assisting with Feeding South Florida and stated it is important that we do the services that we have been doing. Mr. Schofield reiterated that due to the budget shortfalls this year and next year, service models will change. He also discussed the rate of inflation since 2008 when the Village cut staffing levels. Review 2019 Directions Workshop Action Items Ms. Quickel provided updates regarding Pathways & Trails. Mr. O’Dell provided an update regarding Beautification and Walls. He Village of Wellington Page 6 Village Council Workshop Action Summary - Final June 3, 2020 discussed the pilot project on the east and west sides of Forest Hill Boulevard for hedges and stated it is complete. The Village did the plantings and the irrigation is a part of the Village’s irrigation system. Mr. O’Dell stated this is a 30 month maintenance program. Discussion ensued regarding landscape buffers and walls as well as maintenance. Mr. Schofield and Mr. Barnes discussed the differences of the homeowner associations (HOA) regarding maintenance and properties with active HOAs and those that do not have active HOAs. Mayor Gerwig asked if the Council preferred hedges or walls. Councilman Drahos asked if this is consecutive, what are the costs and how many more areas does the Village have left to complete. Mr. Barnes stated the cost of installation and maintenance are the greatest costs. Councilman McGovern stated he would like to see this program ramped up significantly and would like to see it completed on the larger scale. Mr. Bruce Wagner discussed the type of plantings, Green Arboricola, and why it was chosen. Mr. Wagner stated the Village is watering these and it is re-use water. There was consensus of Council that they prefer hedges and would like to see the remaining homes in the pilot project along Forest Hill Boulevard completed. Mr. O’Dell briefly discussed the utility easement. Councilman Napoleone asked how it will be explained to certain residents that the Village would take care of their maintenance but not the maintenance for others. Councilman Drahos asked how much more is there to do. Mr. Barnes stated there is more to complete. He provided recommendations and stated staff can provide an accurate depiction of what has been done to date. He stated piecemeal of individual lots will be problematic. Councilman McGovern stated only five homes have been completed and he would like to have the remaining thirteen homes completed. Village of Wellington Page 7 Village Council Workshop Action Summary - Final June 3, 2020 Mr. Barnes stated it is a slow process and suggested that neighborhoods as a whole be pitched to regarding interest and discussed the possibility of assessments. Councilman Drahos asked what the Village’s Code says currently regarding fences and hedges. Mr. Schofield stated fences or hedges are not required. Mr. O’Dell discussed areas that the Village could concentrate on. Mr. Barnes provided an update regarding the walls for Big Blue. Mr. Schofield discussed the wall behind the Veteran’s Memorial. Councilman McGovern asked what the timeline is for completion. Councilman McGovern asked about those that want the wall along Big Blue. Mr. Barnes stated there is a core group of people that want it and discussed where the wall would be placed. Councilman McGovern stated the Forest Hill project and engaging the discussion about the wall along Big Blue can be done simultaneously. Mayor Gerwig stated she would like to know what the Village is looking at regarding cost. She stated the preference for walls need to be balanced out with costs. Mr. Barnes discussed the varying levels of maintenance and stated the Village has to be prepared for the perpetual maintenance of the walls and landscaping. Council briefly discussed the location of the walls. Regarding Equine Waste/Manure, Mr. O’Dell provided an update regarding the Horizon, LLC. Project on the SWA property and stated the goal is to be operational in late December or early January and explained how the process will work. Ms. Quickel and Mr. O’Dell provided an update on the property/land banking items. Village of Wellington Page 8 Village Council Workshop Action Summary - Final June 3, 2020 Regarding Facilities, Mr. O’Dell provided the Town Center Update. Town Center Phases Mr. O’Dell discussed the Town Center Concept-Phase II. Councilman Napoleone requested a hard copy of the map. Mr. Schofield stated staff developed this phase based on public input and design. He stated this will be brought to Council in a workshop. Mr. Schofield stated that the Promenade is complete. Mayor Gerwig stated that she likes that this is using what we already have i.e. amphitheater and green space. Councilman Drahos asked what the timeline is for this phase. Mr. Schofield stated the design costs will be in next year’s budget with construction in 2022. Mayor Gerwig stated she thinks that outdoor events will come back sooner than indoor events. She stated the Tourism Board indicated it will be a long time before people feel comfortable staying in hotels. Councilman McGovern asked about the timeline. Mr. Schofield stated if there is consensus to move forward, he would like to put the design and permitting into next year’s budget. It will take eight to nine months for that part of the process; and the goal is for construction to start fifteen months from now with a year or a little over a year to build. Mayor Gerwig stated the Village will not know the impact until next year. Councilman Drahos asked how much sales surtax money the Village has. Mr. Schofield and Ms. Quickel discussed the sales surtax funds. Councilman McGovern stated that he believes for now the general consensus is to move forward with Phase II. Mayor Gerwig asked if improvements to the Community Center will be included. Mr. Schofield stated it will include improvement of handicap spaces and Village of Wellington Page 9 Village Council Workshop Action Summary - Final June 3, 2020 access to the building. Mr. Barnes stated staff is reviewing kitchen improvements for the Community Center from a conceptual standpoint to determine the scope of what can be done. Mayor Gerwig stated being outdoors is safer in many ways. Councilman McGovern stated staff has had success with outside events. Discussion ensued between Council and staff regarding design, traffic circulation, docks and the Promenade. Regarding Cultural Arts, Mayor Gerwig asked about cultural arts and referenced a P3. She asked if staff has spoken with the mall. Mr. O’Dell stated they have been working with the Treasure Coast Regional Planning Council (TCRPC) and are developing a scope of services. Vice Mayor Siskind stated a partnership is the way to go. Mayor Gerwig stated that the Village has a weakness with business/office space. She stated in talking with some of the equestrians who remained here, there may be some growth of different branch offices. Councilman Napoleone stated an outside consultant is very important in determining what the village has currently and what the village needs. Mayor Gerwig mentioned North Course and stated it is a long term issue regarding access to the property and the road coming down to grade for same. Councilman McGovern stated he is not comfortable spending tax dollars on private property. Councilman Napoleone stated for those listening or watching the workshop, this is not a discussion for development on the property. Regarding the Police Substation, the construction start has been postponed until 2022. Regarding policy discussions, Ms. Quickel stated housing was discussed earlier in this workshop. Village of Wellington Page 10 Village Council Workshop Action Summary - Final June 3, 2020 Mr. Schofield stated a study was done regarding golf carts and a policy has been drafted but it is not final yet. He stated for residential streets with 35 mph or lower, golf carts will be permitted. Mr. O’Dell stated the ordinance will be brought forward within the next 30 days. Mr. O’Dell commended Ms. Rachel Bausch, Assistant Village Attorney, for her work on the ordinance regarding golf carts. Ms. Cohen provided an update regarding Rustic Ranches and stated there is pending litigation currently on appeal. She briefly discussed the lawsuits in relation to the appeal. Councilman McGovern asked about the appeal and if there would be more argument in the case. Ms. Cohen stated regarding a decision on the appeal, it could be a minimum of four to six months due to COVID-19. Mr. Barnes stated there have been some updates completed on the roads by Pine Tree. Long Range Financial Plan & Budget Ms. Quickel discussed the millage rate projections and stated the process was started back in 2018 regarding maintaining the millage rate across 5 years into 2023. She stated the millage rate has been extended to be held flat to 2025. Ms. Quickel discussed the unassigned fund balance preliminary projections for 2021. Councilman McGovern asked if the Village will discuss changing the service models in a way that will not have an effect on the residents. Mr. Schofield discussed customer service and the Tyler model that the Village is using which will change the number of people that are needed . He suggested keeping the lobby staffed from 8:00 a.m. to 1:00 p.m., Monday to Thursday, and in the afternoons the number of staff will be reduced with no customer service staff at all on Fridays. He stated he is also reviewing Parks & Recreation models for the services the Village provides. Mayor Gerwig asked about 4 day work weeks and stated she is willing to have this discussion again. Ms. Quickel spoke regarding the utility conversion. Village of Wellington Page 11 Village Council Workshop Action Summary - Final June 3, 2020 Councilman McGovern asked if persons will still be able to call on Fridays as it has been when the building was closed during COVID-19. He stated he would be in favor of this; once he sees the numbers. Councilman Drahos stated he would like to see the numbers regarding the change in hours for the lobby. It was Council consensus to have the changes as suggested by Mr . Schofield with a review of the costs, savings and service models that will not impact residents. Councilman Napoleone stated residents should be educated on what the Village offers and what they can do online. Mr. Schofield gave an overview of what has been done regarding staffing levels during COVID-19. Councilman Drahos stated the Council is in favor of natural attrition versus employees losing their jobs. Council Discretion Mayor Gerwig stated utility costs are going up. Mr. Schofield stated utility revenue is about $40 million per year. He stated he is not recommending changing the utility rate structure as it is. Mayor Gerwig inquired about celebrating Wellington’s 25th Anniversary and Fourth of July. She asked about the planning for the musical broadcast for the Fourth of July. Mr. Barnes stated it will be a drive-in type of July 4th celebration. Staff is currently reviewing locations for the celebration. He stated social distancing and other guidelines will be followed. He discussed a few brief points of what will take place. Mr. Barnes stated the Village currently has an AM radio station. He stated Zambelli will handle the production and fireworks. Staff will handle the broadcasting of the music. Councilman McGovern stated he feels the Village residents want and deserve the fireworks display. Vice Mayor Siskind expressed concerns with Wellington having the only live fireworks show due to the huge number of people who may attend. State Road 7 - TCRPC Timetable & Wellington Mall Village of Wellington Page 12 Village Council Workshop Action Summary - Final June 3, 2020 Mr. Schofield stated to the extent that we can avoid damage to the mall, he believes the Village should do so. K Park Options Councilman Drahos asked when the lease is due for Alderman Farms. Mr. Schofield stated the lease is up for renewal now. Councilman Napoleone discussed someone who is growing blueberries and stated he is interested in doing a “you pick” type of blueberry event or green market on that site. It will still be largely a farm but would have community engagement on the site. It would have on grass parking and no permanent structures. Councilman Napoleone stated he thinks it would be a good use for that parcel. Councilman McGovern stated they want something not as large as the Bedner’s concept just some farmer’s market type of events. Mr. Schofield asked if someone could provide him the number for the individual. He stated the Alderman Lease will be placed on Council agenda at the end of the month. He stated he needs to bring the lease into compliance as like all leases with leases being bid every five years . Mr. Schofield stated the Village makes $40,000 per year from the lease. Mayor Gerwig stated she does not want to sell K Park. Brief discussion ensued regarding uses for K Park. Ms. Quickel discussed how the surtax monies will be used. 5. CAPITAL PROJECTS Parks and Recreation Update Mr. Barnes stated this will be a team effort since Mr. Stillings and Mr. De La Vega also worked on this with him and Mr. Juckett. Mr. Barnes provided an overview of the Parks and Recreation plan completed by Aecom Consultants. Mayor Gerwig inquired about teen programming. Mr. De La Vega stated Community Services staff has been bringing programming to youth who cannot attend programming at actual Village facilities. He stated they are providing programming at various parks throughout the Village. Village of Wellington Page 13 Village Council Workshop Action Summary - Final June 3, 2020 Councilman Napoleone stated the Village should possibly fill the gap of what is not offered at schools for teens. Mr. Barnes reviewed various recreation trends. Mr. Barnes discussed the public involvement in the development of the plan. He provided a recap of where and when the community meetings and focus groups were held. He reviewed the public engagement themes, the online and statistical survey. He stated the survey participants were Village residents. Lastly, Mr. Barnes provided a summary of the plan and what the village measured themselves against . He stated the Village compares well. He stated the Village is one of the few CAPRA certified agencies in the county. He indicated the Village also compares better in the national benchmarks for the various categories. Mr. Barnes stated the Village is well on track to delivering what the residents want. Vice Mayor Siskind asked if the plan will be presented to the new Parks and Recreation Advisory Board. Mr. Barnes stated it will be presented to the Parks and Recreation Advisory Board. Paving South Shore & Pierson There was no discussion on this topic. 6. CLOSING COMMENTS There were no closing comments from staff or Council. 7. ADJOURN There being no further business to come before the Village Council, the workshop was adjourned at 4:09 p.m. Village of Wellington Page 14