Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Wednesday, March 29, 2023 8:30 AM DIRECTIONS WORKSHOP Village Hall - Conference Rooms 1E & 1F Village Council Workshop Anne Gerwig, Mayor Michael Drahos, Vice Mayor John T. McGovern, Councilman Michael Napoleone, Councilman Tanya Siskind, Councilwoman While this is a public meeting, there will be no opportunity for public comment at this workshop. This workshop will be Iive streamed, recorded and posted to the Village website for viewing. Village Council Workshop Action Summary - Final March 29, 2023 1. CALL TO ORDER Council Members present: Anne Gerwig, Mayor; Michael Drahos, Vice Mayor; John T. McGovern, Councilman; Michael Napoleone, Councilman; and Tanya Siskind, Councilwoman. Advisors to the Council: Jim Barnes, Manager; Laurie Cohen, Attorney; Tanya Quickel, Deputy Village Manager; Ed De La Vega, Assistant Village Manager; and Chevelle D. Addie, Village Clerk. Staff present: Robert Basehart, Nicole Coates, Cory Cramer, Paulette Edwards, DJ Helkowski, Eric Juckett, Anjuli Panse, Johnathan Reinsvold, William Silliman and Tim Stillings. WELCOME AND KICKOFF Mr. Barnes welcomed everyone to the workshop. Mr. Barnes reviewed the Directions agenda and provided an overview : Boys & Girl Club, interests in K-Park, developer interest in certain areas of Wellington, annexation issue and position vacancies. Vice Mayor Drahos inquired about the type of position vacancies. Ms. Quickel spoke regarding position vacancies and recruiting efforts. There was continued discussion between Council and staff regarding recruiting efforts and the job market. 2. PROPERTY UDPATE Dorothy Jacks, CFA, AAS, Palm Beach County Property Appraiser and Cecil Jackson, Chief Appraiser, were also in attendance. She conducted a PowerPoint regarding property values in Wellington. She reviewed her agenda: 2022 Value information, Property Tax Cap Impacts, Trends for 2023. She discussed Wellington’s 2022 Market and Taxable Value. Mayor Gerwig stated she would like to see the comparison between Wellington and Palm Beach County. Councilman McGovern asked if there are municipalities where residential goes down. Ms. Jacks showed an additional chart that displayed the parcel count (Residential, Condo, Agricultural, Multi Family, Other, Vacant, Village of Wellington Page 1 Village Council Workshop Action Summary - Final March 29, 2023 Commercial, Industrial and Tangible) with market and taxable values . She referenced property tax caps for the year 2021 and 2022. Ms. Jacks discussed the one year increase due to the movement of commercial property. She referenced the bill in the legislature right now regarding changing the 3% cap to 2% cap. She reviewed the Consumer Price Index. She discussed Wellington’s residential single-family median sale prices for 2022 ($715K -- an increase of 25% from 2021) and 2023 ($655K -- a decrease of 8% from 2022). Ms. Jacks highlighted the trends for 2023. She thanked Council for the opportunity to present. Councilman McGovern inquired about the trend/value for the Wellington Green Mall. Vice Mayor Drahos inquired about Wellington Bay and how it is valued. Ms. Jacks stated it is valued as commercial property and discussed how each section of the project/facility will be added to the tax roll as it is completed. She stated it has to be substantially complete and able to be used for its intended purpose. Ms. Jacks responded to all of the questions and stated she will provide data and statistics. Council thanked Ms. Jacks for her presentation. 3. ECONOMIC UPDATE Mr. John F. Grady III, Managing Director, Public Trust Advisors, stated they work closely with Ms. Quickel and her team. Mr. Grady provided an Economic Update and Investment Strategy Review. He discussed the Gross Domestic Product (GDP), the Labor Market and unemployment rate. Florida’s unemployment rate is 2.6%. He discussed the median housing prices and new home affordability. He referenced the Consumer : consumer confidence, consumer sentiment, and auto sales. The next topic was inflation. Mr. Grady highlighted the Bloomberg Survey Forecast - March 24, 2023--Economic Activity: Real GDP and Price Indices: CPI - 8% inflation growth in 2022. He showed Yield Curves Scenarios and Economic Expectations. He referenced the Federal (FOMC) funds rate for March 2022 to March 2023. Vice Mayor Drahos inquired about the rate increase and how it compares over the last five years. Mr. Grady responded to Vice Mayor Drahos’s question. Mr. Grady highlighted the Longer-Term Trend-Lower Rates than Federal Village of Wellington Page 2 Village Council Workshop Action Summary - Final March 29, 2023 Funds Rate. Significant Volatility in 2023, rates have been trending lower from October 2022 to January 2023. Then, it changed in March regarding the treasury. He discussed Investments. Referencing Banking System Concerns, Mr. Grady said U.S. Treasury rates have plummeted in recent days as investors moved into U.S. Treasury bonds. Mr. Grady discussed the Operating Strategy Update. He said the Village has an Operating Portfolio and Capital Projects Portfolio. He summarized the Village of Wellington Investment Program. Mayor Gerwig asked about the loan for utilities and asked if it was the right time to do that. Ms. Quickel responded to Mayor Gerwig’s question. 4. ECONOMIC FORECAST Ms. Quickel highlighted the Financial Plan Elements: Financial Trend & Market Analysis, Revenue & Expenditure Forecast, Fund Balance Analysis, Capital Improvement Program, and Financial Policies. She also referenced the Long-Term Financial Plan Executive Summary. She said they look out five to ten years and present information to the Village Council. She also indicated that they identify and discuss key trends; and develop strategies/solutions that look at those. Ms. Quickel mentioned the nationwide banking crisis concerns which is a reminder of how quickly things can change. She noted that the Village continues to see rising costs, continued inflationary pressures, meeting staffing demands, capital maintenance needs and the demand for Village resources and services. She referenced the ongoing plans and studies. She noted the summaries of the Financial Trend Analysis and pointed out the Consumer Price Index (CPI) which is expected to remain high for this year. Ms. Quickel spoke about the Financial Forecast, Considerations and Recommendations. She referenced the Forecast of Revenues and Expenditures for the General Fund, ACME, Utility Enterprise Fund and Solid Waste Collection Fund. Ms. Quickel spoke regarding the Fund Balance and Reserve Analyses. She referenced the Market Analysis and the Five-Year Capital Plan by Funding Source. There was discussion regarding ACME rates. Mr. Barnes and Ms. Quickel responded to Council's questions regarding various costs, reserves and rates. 5. ACME RENEWAL & REPLACEMENT UPDATED 10 YEAR REVOLVING PLAN Jonathan Reinsvold, P.E., Village Engineer, conducted the presentation on the ACME Repair & Renewal program. He showed Council a video of the history of ACME and improvements that have been made. Village of Wellington Page 3 Village Council Workshop Action Summary - Final March 29, 2023 Mayor Gerwig asked how often does the Village use Pump Station 2. Mr. Reinsvold spoke regarding the canal levels. He discussed the original ACME R&R Plan from 2014. He showed Council the proposed improvements from that time. He stated alot of those improvements were completed over the last nine years. Mr. Reinsvold stated 19 projects have been completed over the last nine years and spoke regarding the conveyance capacity. He stated the capacity has been dramatically increased. Mayor Gerwig spoke about Basins A and B and referenced gravity. Mr. Reinsvold stated it is still gravity with the exception of Pump Station 2. He discussed the pipes and choke points in the system. He stated staff has more work to do and referenced the capital projects that they hope to accomplish over the next ten years. He referenced the C -9 Canal. Mr. Reinsvold discussed what the ACME R&R funds would be used for regarding pumping capacity. He said Mock Roos used the ICPR technology to complete the analysis to show the location of the choke points. Mr. Reinsvold discussed the proposed new Pump Station 10 to getting the water out of Basin B faster to the C-23 canal. Mayor Gerwig asked about the cost. Mr. Reinsvold stated they would apply for resiliency grants to assist with the cost of it. Mr. Barnes discussed the re-plumbing. Mayor Gerwig inquired about the direction of the C-51 canal. Mr. Barnes discussed daily maintenance. Ms. Quickel discussed funding for the projects and when funding normally becomes available. She referenced the funding applied for by staff. There was brief discussion regarding applying for grants, allocations and the benefit assessment model. Mr. Barnes informed Council that since 2011, ACME was raised to $200 and was eventually changed to $230 in 2014. 6. UTILITIES - REGULATORY DISCUSSION Anjuli Panse, P.E., Utilities Director, stated staff does not believe Wellington has any issues with lead or copper. The reason for the Village of Wellington Page 4 Village Council Workshop Action Summary - Final March 29, 2023 presentation is the new legislation regarding lead and copper. She stated there could be fiscal impacts down the line. She referenced her agenda: Lead 101, Lead and Copper Rule-1991 (she reviewed historical lead testing results and historical copper results). The EPA standard is “0” lead in a home. Lead and Copper Revision Rule (LCRR) - the goal is to remove lead sources in drinking water, educate the community and protect children. She discussed the major components that have to be completed prior to October 2024. Ms. Panse discussed ownership of the service line. The Village owns between the main and the meter. Regarding Service Line Inventory, she said the Village must develop inventory by October 2024 and instructions to access the inventory must be published with the Consumer Confidence Report. Ms. Panse reviewed the Lead Service Line (LSL) Replacement Program - 1) based on the results of the inventory, Utility must submit a Lead Service Line Replacement Plan in October 2024, 2) program must include strategy for informing customers of replacement and 3) Utility must replace their side of the service line within 45 days if customer replaces their lead piping. She discussed the Lead Trigger Level. Ms. Panse reviewed: Lead Sampling at Schools and Childcare and Ongoing Efforts and Next Steps: Develop Lead Inventory, Sampling Schools and Childcare Facilities and Public Outreach and Education . Ms. Panse reviewed the internal GIS Dashboard. She reiterated that Wellington is a newer community with good quality water. Mayor Gerwig asked when the testing had to be completed. Ms. Panse stated by October 2024. She noted she would like to have the inventory done twelve months from now. Councilman McGovern inquired when replacement has to be done. Ms. Panse stated a plan would have to be developed. Mayor Gerwig inquired about the cost/budget. Ms. Panse said staff is planning to do a pilot program. 7. WELLINGTON - PAST, PRESENT, FUTURE Tim Stillings, Planning and Zoning Director, provided an overview from the time of incorporation. Wellington was 18,353 acres for 1995 incorporation. Wellington increased to 28,947 acres with annexations Village of Wellington Page 5 Village Council Workshop Action Summary - Final March 29, 2023 and approvals during 1998-2016. He reviewed Wellington New Units 2017-2021. Councilman Napoleone asked when Isla Verde was approved. Mr. Stillings stated it came in 2006 and was approved in 2012. Ms. Cory Cramer explained when it came in. Mr. Stillings spoke regarding density in Section 24. He discussed Wellington Pending “New Units” (active petitions) and Wellington Pending requests using “Existing Units”. He discussed the Planned Development Timeline. He stated Mr. Basehart would discuss annexations. Mr. Robert Basehart reviewed Future Annexations. He discussed Annexations by Year from incorporation to 2023. Mr. Basehart explained the Primary Reasons for Annexation (Property Owner and Municipality). Councilman McGovern asked if Panther Run was the 25th annexation. Mr. Basehart stated that it was and it was a voluntary annexation. Mr. Basehart reviewed Future (Reserve) Annexation Areas. Mr. Barnes discussed traffic and code enforcement in gated communities. Mr. Basehart discussed Potential Annexations. Northwest Annexation Areas--Arden was referenced and Mr. Barnes gave background information. There was continued discussion between Council and staff regarding the Northwest Annexation Areas. In addition, there was brief mention of Indian Trail Improvement District’s request for incorporation as “Village of Loxahatchee” that is moving through the legislature. Mr. Basehart discussed pending legislation regarding Chapter 171.042-Feasibility Study. 8. CONSENSUS DIRECTIONS & WRAP-UP The new District 8 Commander in Wellington, gave brief comments. She will be formally introduced by Captain Silva at the April 11, 2023 meeting. Mr. Barnes provided background information of past visioning sessions . Village of Wellington Page 6 Village Council Workshop Action Summary - Final March 29, 2023 He mentioned Village-wide engagement (council, stakeholders, community, staff, directors) regarding the vision. He spoke regarding Town Center, the Mall, 10-acre site. He stated Town Center is at Phase II and regarding the Mall issue, staff stays engaged with them. He indicated the Village needs to have framework in place for once the Mall is prepared to do something. The Village started the process by having the Treasure Coast Regional Planning Council (TCRPC) complete the study. Regarding K Park, staff continues to be prepared for what may come up in terms of offers (unsolicited proposal for $25 million). Mr. Barnes referenced the new proposal regarding North London Collegiate School. Council asked brief questions regarding the school. Mr. De La Vega spoke regarding Project Lighthouse. There was brief discussion. Councilman McGovern inquired about Lotis II. Mr. Stillings provided an update regarding Lotis II and Lotis I. Ms. Panse also spoke regarding the project’s private sewer elements and she stated that her understanding is that the health department had some comments. Mr. Stillings stated staff needs updated information regarding their timeline. Mr. Barnes spoke regarding partnership with the Palm Beach County Sports Commission. He referenced the Perfect Game Tournament. In addition, the Village is starting a Memorial Day tournament and will put it together in about 90 days. He referenced other events. There being no further business to discuss, the workshop adjourned at 4:00 p.m. Village of Wellington Page 7