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2008.05.06_TC_Minutes_Regular• TOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING REGULAR MEETING Tuesday, May 6, 2008 1.30 P M Mayor Jim Newill, CPA called the Regular Meeting to order in Commission Chambers at 1:30 P.M. CALL TO ORDER: Roll Call: Members present: Mayor Jim Newill, CPA; Vice Mayor Miriam S. Zwick; Commissioner Doris M. Trinley; Commissioner John J. Sorrelli and Commissioner John J. Pagliaro. Also present: Town Attorney Tom Sliney; Town Manager Dale S. Sugerman; Town Clerk Beverly M. Brown; and members of the public. Pledge of Allegiance: The Pledge of Allegiance was given, followed by a moment of silence • in honor of members of the military, both living and deceased. Civility Pledge: Town Clerk Brown recited the Civility Pledge for the Commission and public. 1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA Town Manager Su eg_rman - In my weekly report last Friday, I had given aheads- up in regards to the mandated fencing around the water plant. Since that time, we have received the mandatory three quotes that are necessary when an item is over $15,000.00. I would like to add an item under New Business, identified as: "Awarding a Contract for the Installation of Fencing at the Water Plant." 2. PUBLIC COIVIlVIENTS AND REQUESTS Jerry Marshall - 1088 Bel Lido Drive -Representing Bel Lido Property Owners Assoc. The water plant costs ran two and a half times what was originally presented to the residents. Can someone re-numerate for us what is the remedy to offset these additional costs? Raise taxes? Issue bonds and pay them off when the property is sold? When everything else is going up, raising rates is not a remedy. Can we sell some of the water to . Boca Raton or Delray Beach? Raise the taxes so that we can deduct it from our income tax. Was the plant built too large? Town Commission Minutes Mav 6, 2008 Pa eg 2 of 8 • Mayor Newill - It is being subsidized by property tax. All residents are looking for tax and insurance relief. We do not produce enough water consistently to sell it. Town Manager Su eg rman -The Water Plant has the capacity to produce 3 million gallons a day. The demand most days is between 2.1 and 2.5 million gallons. The Town has to be prepared to distribute 80 % of the water produced to its residents. We may not have enough to sell as we need to keep 20% in reserves for our residents. The Water plant is sized just right. We are at 80% capacity and have allowed for 20% growth. Suggesting tax payers share the cost of paying for the water plant, is not an equitable solution. Not all tax payers are water users. Mayor Newill -Even if we raise the rates, the deficit is $650,000. T'he gap will be narrowed, but taxes will still have to pay the difference. Town Manager Sugerman -When we adjust the rates, people start conserving and use less water. With the increased rates, there still will be a gap of $200,000.00 which will be covered by taxes. Beverly Knight - 4023 S. Ocean Boulevard Have asked residents to attend an informal meeting at the library tomorrow evening to learn more about the proposed Milani Park application. The information is not getting out to the residents. Everyone from the town is welcome to attend. If the Town lets this park be constructed, Highland Beach will be opened to the public. It will affect our sea turtle nests and hatchlings; the American Indian archeological site; traffic on AlA; police services; crime rate. Section 4.1 of the Code of Ordinances designates the entire area within the corporate limits as a bird sanctuary. The residents can make a difference. We • need to unite and speak out at the Planning Public Hearing on May 14~'. Mayor Newill - I commend you on your enthusiasm. Town Mana e~ r Su erman -The Planning Board has had three workshops to bring out all the information available on this application. The Town has hired their own professional experts who have given testimony. All this information is accessible in Town Hall for the asking. Town Attorney Sliney - T'he County comes with a large entourage whenever they have an application before a community. We were off setting this entourage with our own professional experts. We have not taken this application lightly. There are reams of material to read. The Planning Board has held workshops up until now. The official Public Hearing will be held on May 14`~ at 9:30 A.M. Every resident should make themselves heard. Mayor Newill - Do you agree with the Town Manager that the elected officials should not attend? Atty. Sliney - Yes. The Commission should let the Planning Board receive the information presented by the County and make their own decision. The application then will come before the Commission for their approval. 3. PRESENTATIONS Stan Novak -Finance Director The Finance Department has the overall responsibility for administration and management of the accounting and financial activities for the Town. These include: processing accounts payable, purchasing, office supplies procurement, utility billings, accounts • receivable, payroll processing and administration of employee benefits, investments, maintaining the Town's fixed assets, and debt service activities. The department also Town Commission Minutes May 6, 2008 Page 3 of 8 • works with the Town Manager and department heads to prepare the annual budget. The bulk of the Town's money is invested with National City Bank which is currently paying 2.66%. Additional money is invested with Branch Banking & Trust, Commerce Bank and the Florida State Investment Pool. The Finance Department also works with the Town's Auditors, currently Nolen, Holt & Minor to prepare the year-end Comprehensive Annual Financial Report. As the Commission is aware, the audit is late again this year. They were rehired last year based upon their experience and cost, and the promise that the audit would be completed in a timely manner. I am extremely disappointed in their performance. Mayor Newill - As the Commission is aware, I was very hard on the auditors last year and initially was not in favor of hiring them. After the commitments that were made on their part, I voted to rehire them. Recommend resurrecting the Audit Committee and look for another firm. National City Bank has now been downgraded, and will possibly be sold. On the most recent balance sheet, a number of accounts are in the wrong position. 4. BOARDS AND COMIVIITTEES A) Board Correspondence • None B) Board Action Report • Report read into the record by Town Clerk Brown • C) Board Vacancies • None D) Monthly Board Meetings -read into the record by Town Clerk Brown. • Beaches & Shores Advisory -May 13th -Regular - 9:30 A.M • Planning Board -May 14th -Regular - 9:30 A.M. Public Hearing -Milani Park (to follow) • Bd. of Adjustment -May 20th - 1:00 P.M. Public Hearing -Renaissance Project, 3200 S. Ocean Blvd. (to follow) Workshop -Goldstein Boat Issue - 4307 Intracoastal Drive (following) • Code Enforcement Board -May 21S`. Regular - 9:30 A.M. • Cultural Board -May 22nd -Regular - 9:30 A.M. 5. PROPOSED ORDINANCES AND RESOLUTIONS A. ORDINANCE N0.07-003 O (Tabled) AN ORDINANCE OF THE TOWN OF HIGHLAND BEACH AMENDING IN FULL THE TOWN CODE, CHAPTER 29 ENTITLED "WATER SYSTEM," SECTION 29-10 ENTITLED "CHARGE FOR WATER SERVICE," AND PROVIDING FOR AN EFFECTIVE DATE. • Town Mana eg r Superman -The "First Reading of Ordinance No. 07-003 O was held on Town Commission Minutes May 6, 2008 Pa e 4 of 8 • October 2, 2007. Instead of holding the Public Hearing and Second Reading, the Commission voted to "table" Ordinance No. 07-003 O. To bring it off the "table," it would need a motion and a second. Under the rules of the Commission, before a Public Hearing or Second Reading can take place; it would need a ten day public notice. It can be discussed, once it is off the table, but no action can take place without a public notice. MOTION: Commissioner Pa liaro moved to remove Ordinance No. 07-003 O from the table; seconded by Commissioner Trinley. ROLL CALL: Commissioner Pagliaro - Yes Commissioner Sorrelli - No Commissioner Trinley - Yes Vice Mayor Zwick - Yes Mayor Newill - Yes Motion carried with a 4-1 Vote. Town Manaeer Su erman -The current adopted 07-08 Budget included an assumption that the water rates would be adjusted. After the budget was adopted, the ordinance did receive the first reading on October 2, 2007 and was scheduled for a public . hearing and second reading on November 6, 2007. The ordinance was tabled prior to receiving the second reading. The increase in water rates was never implemented. We now have a $650,000 gap between expenses and revenues. The only place we can take money to offset this deficit is by using tax dollars. By taking the Ordinance off the table, the Commission is using the opportunity to rethink the adjustment to the water rates. Vice Mavor Zwick -Vividly recall the discussion -town's taxes or rate users. Yes, we would like the money to come from the rate users rather than taxes, but it would impose a hardship on the rate users. Since the propensity of the town is to have the taxes pay some of the water expenses, raising the water rates will also affect me as a resident. The Commission needs to be fiscally responsible to the Town. Suggest cut deficit by raising the rates 1/z way and pay the balance with taxes. Mavor Newill - Do you have any statistics on the rate increases in the communities surrounding Highland Beach? Town Mana er Su e~ -Have heard from 5 to 35%, but will confirm that next meeting. This is not a huge percentage increase. All customers that use less than 13,000 gallons per month will see an increase of $.32 per gallon delivered. For users above the 13,000 gallons per month, the increase of $.20 for every gallon delivered. The highest tier has a reduction of $.45 for multi users and $.55 for single users. This • is not a rate increase, but a rate adjustment. The magnitude is not significant. Town Commission Minutes May 6, 2008 Page 5 of 8 • Mayor Newill -You also need to include the $10.00 basic charge every other month. There are only two sources to cover these expenses -water rates or real estate taxes. Not everyone would get a tax break by increasing the taxes to cover the water expenses. It would not affect the high income property owners and the retirees generally take the standard deductions. Do we need to schedule a special meeting? Town Mana eg r Sugerman -The ordinance can be considered at next month's regular meeting. Make one other suggestion: (turn to page 2) Change the effective date to the June/July 2008 billing cycle, with the August 1, 2008 bill reflecting the new rates. Change the names of the Commission and the day it was approved. Commissioner Trinley - It would be helpful to have the percentages included with the chart. B. RESOLUTION N0.08-003R A RESOLUTION OF THE TOWN OF HIGHLAND BEACH, FLORIDA, AMENDING RESOLUTION N0.07-13R WHICH APPROPRIATED FUNDS FOR THE 2007-2008 FISCAL YEAR BUDGET, WHICH BEGAN OCTOBER 1, 2007 AND ENDS SEPTEMBER 30, 2008. MOTION: Vice Mayor Zwick moved to adopt Resolution No. 08-003 R, seconded by Commission 5orrelli. ROLL CALL: Commissioner Pagliaro - Yes Commissioner Sorrelli - Yes Commissioner Trinley - Yes Vice Mayor Zwick - Yes Mayor Newill - Yes Motion carried with a unanimous vote. 6. NEW BUSINESS A) Awarding a Contract for the Installation of Fencing at the Water Plant • Town Mana er Sugerman -Earlier this year, we heard from the Palm Beach County Health Department that we would have to put a perimeter fence around our Water Treatment Plant. This stipulation was part of the mandates from the Department of Homeland Security. Staff tried to work with the Health Department asking them for permission to allow us to put up temporary fencing until next budget year. The answer was no and we are incurring a fine of $250.00 per day for each day that we don't have the fence up. Jack Lee checked one more time with the Health Department and they said if we were able to get the fence up within the next four or five weeks, we would not be fined. Town Commission Minutes May 6, 2008 Pa e 6 of 8 • Jack's initial thought was that the fence would be less than the $15,000, the threshold where the Town Manager could approve the purchase. The three quotes received are over the $15,000 threshold, and therefore, I do not have authority to approve the purchase. Jack Lee explained the location, type of fence and security stations being installed. MOTION: Commissioner Sorrelli moved to award the contract for the fencing of the Water Plant to Fritz Massie Fence for a total $21,142.00; seconded by Commissioner Pagliaro. ROLL CALL: Commissioner Pagliaro - Yes Commissioner Sorrelli - Yes Commissioner Trinley - Yes Vice Mayor Zwick - Yes Mayor Newill - Yes Motion carried with a unanimous vote. 7. MISCELLANEOUS -ITEMS LEFT OVER A) Amending the Revised Investment Policy Town Mana eg r Superman -All of the changes that the Commission requested have been incorporated into this document. Once it receives final approval, the document will be updated and distributed to everyone. Mayor Newill - Is the State Investment Fund still included? Reply -Yes. I personally will not be able to support it with this fund listed as an investment vehicle. MOTION: Vice Mayor Zwick moved to adopt the "Revised Investment Policy -May 2008;" seconded by Commissioner Pa lg iaro. ROLL CALL: Commissioner Pagliaro - Yes Commissioner Sorrelli - Yes Commissioner Trinley - Yes Vice Mayor Zwick - Yes Mayor Newill - No Motion carried with a 4-1 vote. • Town Commission Minutes May 6, 2008 Page 7 of 8 • S. REPORTS -TOWN COMMISSION Commissioner Pa lg iaro - No Report Commissioner Sorrelli - No Report Commissioner Trinley - No Report. Vice Mavor Zwick - Recently I have been inquiring about the numerous false alarms that seem to be listed on the weekly police report that are causing a lot of unnecessary work. Understand that Chief Angelillo submitted a proposed ordinance to the Town Manager, and they are reviewing it and making some revisions. Mavor Newill - No Report, but would like to recognize our new Palm Beach Post reporter Gretel Sarmiento. 9) REPORTS -TOWN ATTORNEY • No Report 10) REPORTS -TOWN MANAGER. • Have two items. Want to make the community aware of a problem here in Florida created by the State Legislature. They have created stipulations on taxes that will affect out taxes. The monies received from the property tax in Highland Beach constitutes 80% of our revenue. The probability that our revenue will be down is very high. In an effort to be prudent, recently made a determination and have put it in place. Town Staff was notified that a hiring and spending freeze was put in place effective May ls`. Ongoing expenses will continue, but no unusual expenses will be approved. Second item -Will the Commission please stay around after the meeting adjourns for a group picture. 11) CONSENT AGENDA Consent Agenda: • Minutes Approval Special Meeting -March 18, 2008 Workshop Meeting -March 25, 2008 Special Meeting -March 25, 2008 Regular Meeting -April 1, 2008 MOTION: Vice Mayor Zwick moved to approve the Consent Agenda; seconded by Commissioner Pa lg iaro. • Town Commission Minutes May 6, 2008 Page 8 of 8 • Motion carried by unanimous voice vote. 12) PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT MEETING Gerry Marshall - 1088 Bel Lido Drive Would like permission from the Commission to visit with the Town Manager to discuss the rate increase further. Town Manager Sugerman stated that he was always available to the residents for questions. George Barlow - 1084 Bel Lido Drive When a municipality approves a major bond issue, isn't the bond issue paid out of the tax base? What was the total expenditure on the water plant? Town Mana eg r Su erman - $17.25 million dollars. The taxpayers of Highland Beach will pay $619,435 this year to support the $8 million of indebtedness. Bonds were never issued. Borrowed money on short term loans and through the state. Mr. Barlow - In a perfect world, the funds for the water plant would come out of the tax base. Mayor Newill -The Commission has to decide what is best for all the residents. • 13. ADJOURNMENT There being no further business to come before the Commission, Mayor Newill adjourned the Regular Meeting at 3:20 P.M. upon a MOTION by Vice Mayor Zwick seconded by Commissioner Sorrelli. ;' APPROVE A, ATTEST• • Beverly M. rown, MMC, Town Clerk