2012.05.29_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
WORKSHOP MEETING
Tuesday, May 29, 2012 1.30 PM
Mayor Bernard Featherman called the Workshop Meeting to order in Commission Chambers at 1:30
PM.
CALL TO ORDER:
Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor Ron Brown; Commissioner
Doris M. Trinley; Commissioner Dennis J. Sheridan; and Commissioner Louis P. Stern. Also present:
Town Attorney Glen Torcivia; Town Manager Kathleen Dailey Weiser; Town Clerk Beverly Brown;
Finance Director Cale Curtis; Public Works Director Jack Lee; Assistant to the Manager Zoie Burgess;
and members of the public.
Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence.
Civility Pledge: The Civility Pledge was recited by the Town Clerk.
1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA
Mayor Featherman asked for any additions or deletions. Receiving none, the agenda was accepted
as presented.
2. PUBLIC COMMENTS AND REQUESTS
Jim Jiovanazzo — 3700 S. Ocean Blvd.
At a previous meeting, he requested that benches be installed along the walking path. He wanted
to publicly state that he stands corrected, there are benches about every 1/4 mile along the path..
3. PRESENTATIONS:
• Acting Finance Director Cale Curtis — Financial Update
Earlier this month, the Town received a preliminary estimate of its Taxable Assessed Value
(T.A.V.). While the good news is that the T.A.V. increased slightly (from $1,734,330,765 to
$1,743,988,788), the bad news is that we are still anticipating the General Fund to be short on new
Town Commission Workshop Minutes
May 29, 2012 Page 2 of 8
revenues. Under the current circumstances, staff is projecting an appropriation from the unassigned
fund balance of approximately $1,000,000 to close the projected budget gap in FY 2013.
Back in 2011, the Town Commission established a mandatory minimum fund balance reserve to
provide budget stabilization during the months of slow revenue collections (typically October and
November). The mandatory minimum fund balance over the next four years is required to be
approximately $2,350,000 - $2,500,000. Over the last 5 years this surplus of cash has been used to
close the budget gaps of past budgets. The combination of unassigned and mandatory minimum
fund balance comprises the Town's total GF fund balance. I anticipate total fund balance to be
approximately $4.5 million at FY end 2012. We have been fortunate to benefit from a number of
good financial years in the early 2000s that helped build the cushion of surplus funds. However, in
more recent years the Town has had to use these surplus funds to balance the budget. And, if the
current trend sticks and we continue to use our surplus funds to balance the budget, the Town will
have all but depleted its unassigned fund balance (surplus) funds over the next two years. By FY
2015, the Town's mandatory minimum fund balance could be underfunded by approximately $880k
(as shown by the gap between the blue and green for FY 2015). If our fund balance falls below the
mandatory minimum reserve, we will run the risk of being short on funds needed to cover our
expenses during the first few months of the fiscal year while we await the flow of tax collections.
The next slide provides information on various taxing options that could be used to close the
anticipated budget gap and preserve the unassigned fund balance surplus of funds.
The above chart (chart can be located after last page of minutes) illustrates various taxing options
for closing the estimated $lmillion Budget Gap for FY 2013. It also shows the levy effect those
taxing rate options have on a variety of assessed home values. The first column shows a variety of
assessed property values ranging from $500k to $10 million. The second column provides you with
our starting point and shows you what the current GF operating tax rate generates from the provided
assessed values. The third column (FY 2013 Budget Gap Fully Closed) provides you with the
additional taxes levied at various assessed values and the rate change needed to fully close the
projected $1 million budget gap. Looking at column 3 (FY 2013 Budget Gap Fully Closed); each
person with an assessed property value of $500,000 would pay $1,704 plus $287 for a total of
$1,991 toward completely closing the gap in the Town's GF operating budget. The person with an
assessed value of $750,000 would pay $2,555 plus $430 for a total of $2,985, and so on and so
forth. The fourth and fifth columns provide the Commission with the options of using a
combination of new taxes and fund balance to close the FY 2013 budget gap. For example, column
4 uses a tax rate that generates an additional $750,000 toward closing the GF budget gap. The
remaining $250,000 needed to close the gap would have to come from service cuts or the
Unassigned Fund Balance. Column 5 levies an additional $500,000 in new taxes toward the gap.
Again, the balance would have to come from service cuts or the Unassigned Fund Balance. Serious
consideration should be given to how we address the budget gap. Over the last 5 years we have
used the GF Unassigned Fund Balance to fill the budget gap and provide Highland Beach property
owners with tax relief while maintaining a high level of service. However, if we continue to follow
this pattern, the GF fund balance could be underfunded by the end of FY 2014. Over the course of
the budget process I will provide you with more scenarios and options. There isn't any action to
take at this time. However, at a special meeting in mid -July you will be asked to adopt a tentative
maximum millage rate for the 2012-2013 fiscal year. The purpose of this presentation was to bring
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May 29, 2012 Page 3 of 8
awareness and to start discussions on the continued use and depletion of the Town's fund balance to
balance the budget.
4. BOARDS AND COMMITTEES
A) Board Correspondence:
• None
B) Board Action Report:
• None
C) Board Vacancies:
• Board of Adjustment & Appeals — One Appointment
Interview — Talent Bank Application:
Bert Shaprio — 3606 S. Ocean Blvd.
Mr. Shapiro stated that he was a retired Dentist and has owned property in Highland Beach
for ten years. His past experience includes construction of an office building; running a
private dental practice and consulting for the sheriff's department. He shares his time
between a house in Boca Raton and his condo at the Highland Beach Club.
It was determined that Dr. Shapiro was a Boca Raton resident and was not eligible to serve
on any Town board.
• Boca Airport Authority Aviation Advisory Committee — Re -appointment
Interview — Talent Bank Application
Paul Resnick — 4740 S. Ocean Blvd.
Mr. Resnick was not in the audience, so his re -appointment would be carried over.
• Code Enforcement Board — One Appointment
Interview — Talent Bank Application
Jack Halpern — 4511 S. Ocean Blvd.
Mr. Halpern could not make this meeting, so his interview will be carried over.
D) Monthly Board Meetings
• Charter Review Board — June 6`h — 2:00 PM
• Financial Advisory Board — June 7th — 9:00 AM
• Beaches & Shores Advisory Board — June 12t' — 9:30 AM
• Planning Board — June 13t' - Cancelled
• Bd. of Adjustment & Appeals — June 19th - Cancelled
• Code Enforcement Board — June 20t' — If Needed
Town Commission Workshop Minutes
May 29, 2012 Page 4 of 8
5. PROPOSED ORDINANCES AND RESOLUTIONS
None Proposed
6. NEW BUSINESS
A) Discussion on the Walk Path Alternatives
Town Manager Weiser — At their regular meeting on May 1, 2012, the Town Commission voted to
include repairs/resurfacing of the Town's Walk Path in its three-year Strategic Plan. This project can
consist of various alternatives from a simple patch and repair to decorative stamped concrete with
features. There has been some discussion about the liability associated with the walk path. Finance
Director Curtis, who also serves as our Risk Manager, has spoken to our insurance carrier and has
prepared a memo explaining that our financial exposure is low. Given that the Commission has also
put into its Strategic Plan the construction of new Town entryway signs and development of a
slogan/logo, the Commission may want to consider tying these projects together and creating a
"streetscape plan" that would incorporate all these projects. Such a plan would address all these
elements including possible decorative paving. Should the Commission choose this alternative, a
landscape/streetscape architect would need to be hired in the future through appropriate competitive
negotiation process.
DISCUSSION: Comm. Stern — Very exciting concept, can this be financed over a three-year period?
Comm. Sheridan — I agree. Vice Mayor Brown —Would like to see it started immediately. What is the
benefit of putting it off. Comm. Trinley — Where is the funding coming from? Vice Mayor Brown —
Why can't we give it to the Financial Advisory Board (FAB) to look for options to pay for it? Comm.
Sheridan — We also have to consider funding the construction of the Police Department and
Commission Chambers. Mayor Featherman — We need to look at what we are going to do with the
entire walkway. We have insurance that will cover falls, but we have two lawsuits pending over
sidewalk falls. We need to start soon to hold onto these prices. We need to keep our sidewalks safe
and maintained. Vice Mayor Brown —If you have not walked the path, you need to. It is probably the
most used commodity in Town. Some sections are in such disrepair, I would suggest replacing the
whole thing, not repairing it. Comm. Stern — Suggest that we refer this to FAB for recommendations
on how to fund it. Vice Mayor Brown — Agree that we should send it to the FAB for advice. I have
received numerous calls from residents with concerns regarding the replacement of the walk path. One
of the things that you see when you get to Boca is that their path is concrete rather than asphalt.
Personally, would prefer that we replace the entire path with concrete. Comm Stern- Extremely
important that it be included on the next agenda so that we can forward it to the FAB for funding.
Comm Trinley — Due to the dollar amount involved, will this have to go to referendum? Mawr
Featherman — The question is do we replace the whole path or just repair it? We will continue this
item to next week's regular meeting where a vote can be taken. If we are going to forward this to the
FAB, we need to give them direction.
B) Discussion of Town Manager Performance Evaluation and Merit Increase
Mayor Featherman — Has everyone submitted their evaluations? Once they are all submitted, copies
will be made and shared with each of the Commissioners. In prior years, Commissioners each give
Town Commission Workshop Minutes
May 29, 2012 Page 5 of 8
their recommendation of a percentage of salary increase; it is then divided by five, and the increase is
included in a Resolution; then adopted by the Commission. Shall we continue this procedure? Vice
Mayor Brown — Do we have to follow that procedure? Comm. Trinley — It had been the procedure the
Town Commission has always followed. Mayor Featherman - At the Regular Meeting, the
Commission can determine if there will be a salary adjustment for the Town Manager and it will be
incorporated into a Resolution. Will the Town Clerk give a copy of the Manager's contract to the two
new members on the Board? Town Manager Weiser — At your last meeting, we discussed the process.
C) Consideration of declaring Library Books and Audio Books surplus.
Town Manager Weiser — Library Director Mari Suarez has requested that the Town Commission
declare one hundred twenty two large type books and one hundred twenty five audio books surplus.
The books being declared surplus are based on the number of books by each author and shelving
space. At least five books published by each author are still on the shelf.
Comm. Sheridan - Why are we disposing books that were purchased in 2010 and 2011? Manager
Weiser — If the popularity is not there, they are declared surplus. Comm. Sheridan — That is wrong.
These are recent purchases. Comm. Stern — I assume these were purchased with their annual stipend.
Suggest we do not make any decision without the Library Director present.
Item carried over to Regular Meeting of June 5, 2012.
D) Commission Authorization to Purchase three (3) new Pulsafeeder Sulfuric Acid
Metering Pumps from TSC Jacobs, Inc.
Town Manager Weiser — Town Staff would like to replace the old sulfuric acid metering pumps in the
Reverse Osmosis Water Treatment Plant. The pumps are eight years old and are worn out. The cost
to purchase new metering pumps is $26,014.00 and they come with one year warranties.
Public Works Director Lee — We recently replaced the old acid piping in the Reverse Osmosis Water
Treatment Plant. The next step in the rehabilitation process of the Sulfuric Acid System is the
replacement of the acid pumps. TCS Jacobs is the sole source supplier for all municipal Pulsafeeder
pumps and equipment in the State of Florida. These pumps control the PH in the water.
Consensus was to include on the June 5, 2012 Consent Agenda.
E) Selection of a Voting Delegate for the 2012 Florida League of Cities Annual Meeting.
Town Clerk Brown - The Florida League of Cities will be holding its 85th Annual Conference at the
Westin Diplomat, Hollywood, Florida on August 23-25, 2012. The annual business meeting will be
held on Saturday, August 25`h. The Town will need to identify, in advance, who from our
Commission will serve as our voting delegate. In the past, the Mayor has served in this role; however,
any attending elected official can be appointed to serve as the Town's voting delegate.
Town Commission Workshop Minutes
May 29, 2012 Page 6 of 8
Consensus was to appoint Mayor Featherman as the voting delegate and include on the June 5, 2012
Consent Agenda.
F) Authorization for Mayor to Sign Renewal of existing Employee Health Insurance
Plan, BCBS Blue Options 5461.
Town Manager Weiser - The Town's group health insurance plan with Blue Cross Blue Shield
(BCBS) is up for renewal on July 1, 2012. Part of the renewal process is to review similar insurance
plans offered by competing insurance providers to compare costs. We also review alternate plans that
are less expensive, but the result is a reduction of benefits to the participating employees and their
dependents. Per Florida Statutes we are required to offer health insurance to our retirees. As a result
only three insurance providers would offer us a quote. The renewal of the existing plan is 1.62%, or
$8,876 higher than the prior year. Based on the current insurance rate environment, this is an excellent
renewal proposal.
Comm. Sheridan — What percentage of the monthly insurance cost is paid by the employee? Finance
Director Curtis — The Town covers 100% for the employee and 20-22% for dependent coverage.
Comm. Sheridan — Is this the norm for municipalities? Manager Weiser — It is all over the Board.
No questions or comments received from Commission.
Consensus was to include on the June 5, 2012 Consent Agenda.
G) Authorization for the Town Manager to approve two Blanket Purchase Requisitions.
Town Manager Weiser — Last year the Town Commission authorized the issuance of annual blanket
purchase requisitions for chemicals (sodium hydroxide and sulfuric acid) purchased and used by the
Water Plant. Those blanket purchase requisitions have expired or are near their expiration. Water
Superintendent Dave Ailstock has obtained the required three quotes for each chemical. Harcros
Chemical was the low bidder on each chemical and we estimate an annual savings of approximately
$3,000 from the prior year's winning bid.
No comments or questions received from Commission.
Consensus was to include on the June 5, 2012 Consent Agenda.
7. MISCELLANEOUS — ITEMS LEFT OVER
A) Minutes
April 24, 2012 — Workshop Meeting.
May 1, 2012 - Regular Meeting
No corrections received from Commission.
Consensus was to include minutes on the June 5, 2012 Consent Agenda.
Town Commission Workshop Minutes
May 29, 2012 Page 7 of 8
8. REPORTS — TOWN COMMISSION
A) Commissioner Stern — Congratulated Cale Curtis on his appointment.
B) Commissioner Sheridan — Would like to congratulate Cale Curtis on his well -deserved
appointment as Finance Director. In addition, would like to thank him for the revised monthly
Financial Report. It is easy to read and understand. I would also like to commend Chief Hartmann
and the entire Police Department for the 54% decrease in Part One Uniform Crimes in the past year.
C) Commissioner Trinley — I also would like to congratulate the Police Department on the
decrease and to Cale Curtis on his recent appointment.
D) Vice Mayor Brown — I will also extend my congratulations to Cale Curtis and the Police
Department. In addition would like to report on my meeting with Ed Masi and his vacant property.
He presently has an offer on the property and will get back to me if the sale does not proceed.
E) Mayor Featherman — Once again, my congratulations to Cale Curtis and his recent
appointment. Have been reviewing the tape from the last Code Enforcement Hearing and would like
to address the conduct of that meeting in the future.
9. REPORTS — TOWN ATTORNEY
Requested that in accordance with Section 286.011(8) of the Florida State Statutes, the Town
Commission schedule an Attorney -Client Private Session immediately following this
meeting.
10. REPORTS — TOWN MANAGER
Just a reminder, that starting tomorrow Channels 95 and 96 will be moved to Channel 99. This
change has been posted on our website and we have sent out an email to all the condo managers.
I will be attending the Florida Manager's conference in Bonita Springs and will be out of the office
for the rest of the week. The Town Clerk will be in charge during my absence.
11. CONSENT AGENDA
None.
12. PUBLIC COMMENTS AND REOUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
Harold Hagelmann — former Mayor residing at Boca Highlands
Town Commission Workshop Minutes
May 29, 2012 Page 8 of 8
I agree with the Vice Mayor in replacing the entire walk path. I have been here over twenty eight
years and some of the black top is twenty seven years old. Feel the concrete would be an
improvement. When we own a home, we make repairs. The sidewalk in Highland Beach is a
necessity. Should get a cost for the whole project and distribute that cost over three years. I ride a
bike on the walking path, and the ruts from the trees are very dangerous. Would encourage replacing
the entire walk path with concrete.
Tim Burnich — 4505 S. Ocean Blvd.
Do not agree with the former Mayor; stick with asphalt. It has more give for the runners that use it.
Carl Feldman — 3210 S. Ocean Blvd.
Would like to thank Vice Mayor Ron Brown for talking with Ed Masi and giving a report.
13. ADJOURNMENT
There being no further business to come before the Commission, Mayor Featherman adjourned
the Workshop Meeting at 2:30 PM upon a MOTION by Commissioner Stern and seconded by
Commissioner Sheridan.
APPROVED:
Bernard Fe erman, Mayor
RErown, Vice Mayor
Dom M. Trinley, Commissione
Dennis J. Shefjali, Commissioner
P. Steixf, Commissioner
ATTEST:
2
Beverly M. B�`wn, M
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