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2014.12.19_FAB_Minutes_Regular TOWN OF HIGHLAND BEACH MINUTES OF THE FINANCIAL ADVISORY BOARD REGULAR MEETING Friday, December 19, 2014 9:30 AM Members Present: Chair Gerald Gitner, Board Member Dragos Alexe, Board Member David Buchsbaum, and Board Member Edward B. Kornfeld. Member Absent: Board Member Bruce Giacoma. Also Attending: Finance Director Cale Curtis, Deputy Town Clerk Valerie Oakes, and members of the public. CALL TO ORDER Chair Gitner called the Regular Meeting to order at 9:00 AM in the Town Hall Conference Room. Roll call was taken by Deputy Town Clerk Oakes. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA Chair Gitner called for any additions, deletions to the agenda, hearing none, the agenda was accepted as presented. PUBLIC COMMENTS AND REQUESTS: Rhoda Zelniker, Regency Highland stated that she wants to assist in the publicity of the water infrastructure project. PRESENTATIONS• No presentations. Financial Advisory Board Regular Meeting Friday, December 19, 2014 Pase 2 of 4 APPROVAL OF MINUTES: • October 17, 2014 — Regular Meeting Chair Gitner called for a motion to approve the October 17, 2014 Regular Meeting minutes, as presented. MOTION: Member Buchsbaum moved to approve the minutes of October 17, 2014 Regular Meeting as presented. Member Kornfeld seconded the motion, which passed unanimously. OLD BUSINESS: A) Update on the Sale of the Surplus Property Finance Director Cale Curtis reported that the surplus property expenses totaled approximately $19,000.00 and the additional proceeds totaled at approximately $14,000.00. The total net proceeds were under $3.49 million, which were invested in a one -year CD at 55 basis points with Citi National Bank and can be withdrawn once without penalty. Chair Gitner recalled discussion on establishing a program to review possible energy savings. It was recommend to review the cost savings for energy bills rather than leave the money sitting in the bank at a low interest rate. Member Alexe stated that the Town could use the surplus funds to pay for the water infrastructure project. Finance Director Curtis explained the benefits of the state loan such as the low interest rate. B) Update on the Recommendation to Town Commission to Appoint an Ad Hoc Committee Director Curtis reported that there was a consensus of the FAB to use surplus funds for the walk path, and to use state loan financing for the water main replacement project. Member Giacoma requested a chart that provides the Town's total debt and how a tax bill would appear if it were paid through ad valorem taxes. As member Giacoma was not present, the chart will be provided at the next board meeting. The chart will show two options: 1) add $340,000 a year in debt service payments — the taxes amount to .17 mills which is equivalent to $17 per $100,000 of assessed property value; or 2) charging a flat service fee on utility bills of $78 per year, per unit. Financial Advisory Board Regular Meeting - - Friday, December 19, 2014 Page 3 of 4 NEW BUSINESS: A) Discussion on Procurement Ordinance and Purchasing Policy and Procedures Manual Director Curtis read the procurement code overview into the record (attached as Exhibit `A' to the minutes). Chair Gitner asked if there was data to show the number of times that the requisite quotes were unattainable. Director Curtis explained that over the last year, for items over $25,000.00, it has been difficult to obtain three bids. Such bid processes include the solid waste bid and the town hall renovations. While there is initial interest in the projects, we did not receive the three bids required by our policy. Chair Gitner stated that defining the use of the word "required" is the purpose of this conversation. Member Alexe recommended providing a list of qualified vendors on the Town's website. Director Curtis explained that he reaches out to the City of Boca Raton and the City of Delray Beach for their vendors list. Furthermore, he explained that state statues clearly read that it is acceptable if two bids are received. If but one bid is received, then the project director will need to provide a written justification on the recommendation to award or reject that sole bid. We follow our procurement policy which calls for three bids. Member Buchsbaum asked if the proposed changes to the policy make it easier or more difficult to bid. Director Curtis confirmed that the policy would not determine that, it would come from the Request for Proposals requirements. Member Buchsbaum felt that this policy is creating a burdensome administrative process with the legal proceeding, and suggested that any litigation should be handled through the court. Director Curtis would obtain a determination from the Town Attorney. Member Kornfeld suggested adding a definition for "sealed bid ". Member Buchsbaum questioned if the Town had the discretion to extend the deadline. Director Curtis would have to consult with the Town Attorney to determine if that is legal because ultimately, that would give a rejected proposer reasonable grounds to dispute the process when they submitted the bid in accordance with the deadline, and another bidder was awarded the contract due to the extension of the deadline. It needs to be a fair and competitive process. Chair Gitner clarified that the board is not suggesting granting an extension due to the (low) amount of bids received, merely that the Town does reserve the right to Financial Advisory Board Regular Meeting Friday, December 19, 2014 Page 4 of 4 extend the process. B) Election of Chairman Chair Gitner called for a motion to elect a chairman. MOTION: Member Buchsbaum moved to elect Gerald Gitner as Chair of the Financial Advisory Board. Member QEggos seconded the motion, which passed unanim ously. Y ADJOURNMENT: Chair Gitner announced that the next Financial Advisory Board meeting will be held on Monday, January 16, 2015 at 9:00 AM. There being no further business, Chair Gitner called for a motion to adjourn the meeting at 10:21 AM. MOTION: Member Buchsbaum moved to adjourn the meeting at 10:21 AM. Member Alexe seconded the motion, which passed unanim ously. APPROVED: z Gerald Gitner L Dragos Al e, Board Member K 'e TOWN SEAL David Buchsbaum, Board Member w Bruce ma, ember Valerie Oakes, CMC Acting Town Clerk Edwar . o e oard Member Date: