1990.08.23_FAB_Minutes_Regular•
TOWN OF HIGHLAND BEACH
FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Thursday, August 23, 1990 1:30 P.M.
This Regular Meeting of the Financial Advisory Board was commenced by
Chairman Fred Firstenburg in Commission Chambers at 1:30 P.M.
Present were the Chairman and Regular Members Richard Brunton, Victor
J. Page and John F. Rand.
Also present were Town Manager Mary Ann Mariano, Chief Accounting Offi-
cer Michael W. Seaman, Utilities Director Jack Lee and Deputy Town
Clerk Doris M. Trinley.
After reviewing the minutes of the Regular Meeting of August 14, and
upon MOTION by Mr. Brunton/Mr. Rand, same were unanimously approved.
The meeting's agenda called for continued review of the Enterprise Fund
Budgets and water rate recommendations for fiscal year 1990/1991. As
requested by the members at the August 14 meeting, Chief Accounting
Officer Michael Seaman had prepared detailed information regarding
'payees in certain of the fund's accounts. In this regard, Utilities
Director Jack Lee was present to answer any questions the members might
have.
Discussion first took place regarding fees for contractual services and
the members were advised by Mrs. Mariano that the Town's contract with
Harvel Utilities was on a retainer basis of cost plus 10%. She added
that for the coming year Harvel was seeking a 30% increase (the first
in two years) and she would only recommend the entering into of a
three-month contract in order to check with other firms before extend-
ing this contract. Mrs. Mariano did note that Harvel has always
responded to their 24-hour on -call basis promptly and efficiently,
providing their own backhoe and after 5:00 PM assignments at no extra
charge. She informed the Board that their invoice for a major water
main break several months ago at the Villa Costa site, which
necessitated their working from 6 P.M. straight through to 8:00 A.M.
was approximately $2700, which the Town recouped in pass -through
billing. When asked how the number of Harvel's hours are established,
Mrs. Mariano explained that this is done through work order, with their
personnel checking in at Town Hall before and after a job. Mr. Lee
added that he is aware of, and checks on, all Harvel assignments.
Several other payees were questioned by the members and Mr. Lee ex-
plained who they were, what services they performed and why those ser-
vices were necessary.
A lengthy discussion took place regarding pass -through billing and the
Board's CONSENSUS was that a method of easily identifying these ac-
counts would be a significant improvement over the present financial
Financial Advisory Board
Regular Meeting - Minutes
is
August 23, 1990 Page 2 of 2
presentations. Mr. Seaman will look into ways to implement this recom-
mendation. Mrs. Mariano also suggested that the Board could meet on a
more regularly scheduled basis to be kept more fully informed, which
idea had previously been discussed by the members.
Regarding the water plant itself, a discussion took place regarding up-
grades and improvements. Mr. Lee advised that it has been ten years
since any renovations have been done; however, since the Town Commision
has not yet made a decision as to a long-range water supply, and in
consideration of impending SFWMD conservation mandates and the Safe
Drinking Water Act, both he and Mrs. Mariano felt it would not be eco-
nomically sound to invest in extensively upgrading the plant now in
view of these unknown factors.
After thanking Mr. Lee for his input and agreeing that all the members
had benefited from his explanations, discussion of the Enterprise Fund
Budgets continued.
The need to allocate monies for two (2) new lines under the Intra-
coastal was addressed and Mrs. Mariano reminded the members that the
budget was so designed as to reflect the recommendation of the Water
Resources Advisory Board. This did not mean, she continued, that the
Town Commission would approve same. As to the correlation of in-
creased water rates with the proposed budget, she said that if the
Board did recommend approval of the Enterprise Fund as presented, and
the Commission in turn did not approve it, the Board could meet again
to determine water rate reductions.
A lengthy discussion ensued with the members' reiterating the stands
they had taken at the August 14 meeting. The discussion culminated in
a MOTION by Mr. Rand/Mr. Page as follows:
THE BOARD MOVES THAT THE TOWN COMMISSION CONSIDER APPROVAL
OF THE BUDGET FOR THE WATER SYSTEM AND THE SEWER SYSTEM AS
PROPOSED, WITH THE UNDERSTANDING THAT THE $250,000 FOR WATER
PIPE INSTALLATION BE ADDED TO THE CONTINGENCY FUND.
Chairman Firstenburg asked for a show of hands for an AYE vote, which
was as follows:
Mr. Rand ........... AYE
Mr. Page ........... AYE
Mr. Firstenburg.... AYE
A call for a show of hands for a NAY vote resulted as follows:
Mr. Brunton ........ NAY
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Financial Advisory Board
August 23, 1990
Regular Meeting - Minutes Page 3 of 3
During the discussion regarding water rates to be recommended, Mrs.
Mariano noted that the Town has had a two-tier system for two years;
she added that this approach to conservation is soon to be mandated by
South Florida Water Management District. Simply put, Mrs. Mariano said
this system is translated to mean "If you use more, you pay more."
Concluding their discussion of the water rate schedule, a MOTION was
made by Mr. Rand/Mr. Page as follows:
THE BOARD RECOMMENDS A SCHEDULE OF WATER RATES FOR FISCAL
YEAR 1990/1991 TO BE $1.25 PER THOUSAND GALLONS FOR THE
FIRST 10,000 GALLONS PER MONTH; $1.50 PER THOUSAND GALLONS
FOR ANYTHING OVER 10,000 PER MONTH; AND A UNIT CHARGE OF
$3. 00.
The MOTION met with unanimous approval.
Mr. Brunton requested that if the water rate schedule is approved by
the Town Commission, the Town Manager notify condominium managers as
soon as possible so they could incorporate these costs into their own
budgets. Mrs. Mariano assured that this would be done.
There being no further business to come before the Board at this time,
the meeting was adjourned upon MOTION by Mr. Rand/Mr. Firstenburg at
4:03 P.M.
APPROVE(-- tiL
Fred Firstenburg, Chairma
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ATTEST:
DATE:
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F. Rand, Vice Chairman