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1989.08.22_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH FINANCIAL ADVISORY BOARD REGULAR MEETING - MINUTES Tuesday, August 22, 1989 9.30 A.M. A Regular Meeting of the Financial Advisory Board was called to order by Chairman Fred Firstenburg at 9:30 A.M. on Tuesday, August 22, 1989 in the Commission Chambers at Town Hall. Members present included Chairman Firstenburg, Richard Brunton, Victor Page and Grover Ensley. Vice Chairman Benjamin Cohen was absent. Also present were Mayor Joseph A. Boulay, Town Manager Mary Ann Mariano, Chief Accounting Officer Stanley Novak and Deputy Town Clerk Doris Trinley. (� A MOTION was made by Mr. Brunton/Mr. Page to approve the minutes of the July 11, 1989 meeting as submitted. All members voted AYE. OLD BUSINESS Mr. Page addressed Town Manager Mariano asking her to clarify the need for two additional employees in the Maintenance Department as reflected in the 89/90 FY budget which the FAB has already recom- mended for approval. Specifically, he wanted to know if these em- ployees would eliminate the need for all contractual services re- garding janitorial and landscaping services. Mrs. Mariano re- sponded affirmatively and further stated that with such an addi- tion the Town would achieve a better aesthetic quality as there will be more control of the workload, rather than an itinerant ap- proach to same as happens with contractual and/or part-time labor. Members of the Board were presented with copies of comparison figures regarding COLA and percentage spreads of merit -increases compiled from surrounding communities by Town Manager Mariano. A brief discussion followed, with Mr. Brunton questioning how the COLA figures could vary so much. Mrs. Mariano explained that not all municipalities use CPI, as does Highland Beach. It was generally agreed by the members that the Town's standing in this compilation was favorable. I • FINANCIAL ADVISORY BOARD August 22, 1989 Regular Meeting - Minutes Page 2 of 4 NEW BUSINESS Review of July Financial Statement/Final Budget Transfers Mr. Novak addressed the Board regarding the July Financial State- ment and Final Budget Transfers, noting that he would cross- reference same as he gave his review. He gave an in-depth expla- nation of the financial statement, concluding that in general it was on target. The final budget transfers included additional advertising and services required for the Comprehensive Plan, additional hours required for a permanent part-time accounting clerk, an increase in regular salaries due to the addition of a temporary part-time employee in the Maintenance Department, an increase in bond paying agent fees, and finally, monies required for additional legal counsel regarding Broadview litigation (Hid- den Harbor). Mrs. Mariano noted here that the Town Attorney's fee for these services is $75-$90 @ hour; the additional legal counsel fees are billed to the Town at $125-$150 @ hour. Mr. Brunton asked if the amount of monies indicated for additional legal counsel might have a deleterious effect on the opposition should they become aware of that amount. Both Mrs. Mariano and Mayor Boulay felt it would make no difference since trial is set for December 1989. Regarding expenditures, the Town Manager noted that the Town Com- mission had not only authorized a reverse osmosis study regarding the Town's water needs, but had also called for an' addendum to same, to include location of the plant behind Town Hall, cost of another water line under the Intracoastal Waterway, and any envi- ronmental concerns the engineers (J.M. Montgomery) thought appli- cable. Mr. Novak and Mrs. Mariano discussed current expenditures regard- ing delinquent water bills, explaining that at least 25-30 notices are sent out monthly at the cost of $2.00 each for "Certified Mail, Return Receipt Requested." Under this system, the Town not only incurs a sizeable yearly cost, but turn-off dates vary considerably since turn-off takes place five (5) days after the signed receipt arrives back at Town Hall. It was felt that under this system some consumers were "beating the system" by refusing to sign for the notice; therefore, no receipt, no water shut off. The proposed system, which has been cleared with the Town Attorney, would be in "Notice" form, sent regular mail, advising that service will be terminated ten (10) days after the date of Notice should invoice not be honored. Utilization of this system will stabilize the date of turn-offs, conserve time for water plant personnel, and the Town will not have to bear the cost of certified mail. This system will be presented to the Town Commission, in ordinance form, for discussion at their August 29 Workshop Meeting. FINANCIAL ADVISORY BOARD Regular Meeting Minutes August 22, 1989 Page 3 of 4 When the discussion regarding the July Financial Statement and the Budget Transfers had concluded, a MOTION was made by Mr. Brunton/ Mr. Ensley recommending that the transfers be approved as pre- sented. All members voted AYE. At this time, the Town Manager and Chief Financial Officer opened a discussion regarding the concept of "cafeteria," i.e., "pick and choose" fringe benefits. Mrs. Mariano offered that some companies already have put this concept into effect and, for the purpose of future consideration, she had asked Mr. Novak to work up an across the board figure as to what the Town's fringe benefits are worth. Basically, they explained, this concept allows employees to re- ceive the value of their fringe benefits in "cash;" in turn, they can then shop for their own coverage regarding life, health, dental, accident/liability, retirement, etc., with the proviso that the company receive proof of such coverage. Chairman Firstenburg stated that while he would welcome more information on the concept, he felt this approach defeats the reason for fringe benefits, as some employees might opt to take the money and not think ahead, to which Mrs. Mariano repeated that proof of cover- age to the employer was a key factor in utilizing this system. Mr. Firstenburg added further he believes a fringe benefit of "X dollars cash" would purchase substantially more benefits for an • employee of low age than it would for an older employee. If such be the case, it would be basically unfair to older employees, while extremely liberal to younger employees. Fringe benefits, he stated, are historically a paternalistic gesture on the part of an employer and to "saddle" the employee with making his own individual insurance negotiations as opposed to group negotiations could defeat the whole concept of employee fringe benefits. After a lengthy discussion of this concept, including many ques- tions from the Board members, it was the CONSENSUS of the members that this approach to fringe benefits would bear discussion at a future meeting. Regarding the upcoming fiscal year's contract with County Sanitation, Mrs. Mariano and Mr. Novak asked the Board to make a recommendation regarding an increase in rates due to elevated tipping fees and the inclusion of three holidays (Thanksgiving, Christmas and New Year's Day) as days for garbage pickup, noting that these holidays fall on regular pickup days. After a discus- sion regarding what additional charges would be incurred, a MOTION was made by Mr. Brunton/Mr. Ensley to recommend that the Town increase the fees to include these three holidays for garbage pickup, based on a 5% administrative charge. ri U FINANCIAL ADVISORY BOARD Regular Meeting - Minutes August 22, 1989 Page of 4 of 4 It was decided by the Board members not to set a date for the next meeting, but to await word from the Town Manager as to when same will be needed. There being no further business to come before the Board, the meeting was properly adjourned upon MOTION by Mr. Brunton/ Mr. Ensley at 11:40 A.M. i APPRO rED,-Q Fred Firstenburg, Chairman -ABSENT - Benjamin Cohen. Vice Chairman Richard Brunton �5/' ;-, e 0� Grover EnsYet Victor P ge ATTEST DATE: