2008.06.03_TC_Minutes_Regular•
TOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
REGULAR MEETING
Tuesday, June 3, 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 Mana eg r Su erman -Requesting the Commission consider moving Agenda Item #5
A -Ordinance No. 07-003 O to be heard after Agenda Item #6C -placement of
referendum issue. The Referendum issue will have an impact on the Ordinance.
MOTION: Vice Mayor Zwick moved to place Item #SA -Proposed Ordinances and
Resolutions after Item #6 -New Business; seconded by Commissioner Trinley.
Motion carried by unanimous voice vote.
2. PUBLIC COMMENTS AND REQUESTS
Jason grodsky - 4517 S. Ocean Boulevard
even or eight years ago, my son and I circulated a petition to create a special tax for the
r~=nourishment of the beaches in Highland Beach. The residents on the west side were
against it. Now we are talking about a special tax for cleaning the beaches. Everyone has
• ~ access ±o the beaches. There is no need for a special tax. Town Mana e~ r Su eg rman -The
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'June 3 ' 2008 Pa e 2 of 12
• whole concept of the "Taxing District" will be explained at the June 24`~ Workshop. Mr.
Brodsky -Will the meeting be broadcast? Renly -Yes. What about beach re-
nourishment? Is that a dead issue? Town Mana er Su eg rman -The Beaches and Shores
Board meets the second Wednesday of every month, and has discussed it a number of
times. The reason it is not done in Highland Beach, is that there are no public beaches.
Sharon Stein -President -Bel Lido Property Owners Association
Water rates -Homeowners request Commission debate and come to an equitable solution
for everyone. Further ask that the rates be adjusted to one tier. Please make certain the
information shared with residents is accurate.
Joe Yucht -Boca Highlands
A gallon of water for a condo or a single family home costs the same. Very difficult
problem to determine a rate. Four months ago, I made a rate chart and shared it with the
Commission. Under certain conditions, condo owners pay a higher rate than private
homes.
Jerry Marshall - 1088 Bel Lido Drive -
Agree with Joe Yucht's statement. Have a letter from John Rand that he has requested to
be read into the record. Mr. Rand was on the Commission when the new plant was
proposed and is unable to attend today's meeting.
• John Rand's letter was read into the record by the Town Clerk. Actual statement can be
found as part of the backup material for this meeting.
Mayor Newill -Permitted the letter to be read into the record to give every side an
opportunity. Would like an opinion from the Town Attorney and Town Manager as to
letters being submitted to be read at Commission meetings. Town Attorne Sliney_ - I
think a relatively short letter could be read into the record. I think it is reasonable to let it be
read, but preferable that they come themselves. Town Mana e~ r Su elan -There is no
entitlement for someone to read a letter for others, if they do not appear. It is my belief that
it is at the discretion of the chair to allow the read of a letter by someone who does not
appear. I respect Mr. Rand, but there are a number of incorrect statements within the letter.
Mayor Newill - I subscribe to the Town Managers read o it. I let the letter be read in trying
to be fair to all. Do not want us to be barraged with letters. Reading a letter from someone
else, accomplished very little.
Jerry Marshall -
We recently discovered, that the Town reads the meters and the bills are made out
according to the usage. However, the condos have more than one meter. The entire
calculation is very much screwed with multiple meters. In addition, no one has said what
you are gp~fi to do with the money once you sell the old water plant.
` M,ayor Newill -This has been discussed many times. The last Commission agreed that it
would apply all the monies to the debt service. Disagree that the water plant is owned by
• the water department.
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'June 3,'2008 Page 3 of 12
• Barry Seideman - 4312 Intracoastal
No homeowners are represented on the Commission. Feel it should be fair and square.
Recommend meetings be held at 6 P.M. Water bills should only cover the cost of
manufacturing the water. Everyone should pay the same rate. The cost of the building
should be covered by taxes. Want the Highland Beach Police Department to stay in
Highland Beach. We are the safest town in the area and would like to keep it that way.
Bob Leone -Bel Lido
Is the Police Department being offered to anyone else besides the Sheriff's Department?
Will you be putting it out to bid? Reply -You do not put that type of service out to bid.
Allen Teller - 4210 S. Ocean Boulevard
Did not realize that condo buildings have multiple meters. This type of system could run
into abuse by alternating meters. A gallon of water costs the same for everyone. Town
Mana e~ eg_ rman - In larger condos, there are multiple meters. T'he hydrology of the
water flow creates the need for multiple meters. All meters stand alone. No one can
reroute the water flow.
George Barlow - 1084 Bel Lido Drive
Is someone aggressively marketing the two parcels of property on a continuing basis? It
• would behoove us to market the property to reduce the debt rather than raise taxes. Town
Mana eg_r Su erman - We spent $8,000 in November and December advertising this
property with national advertisements. From this campaign, we received two offers.
Commissioner Pa lg iaro -Agree -that the sale of the property would off set the debt.
Commissioner Sorrelli - It has always been my thought that the monies received from the
sale of the property would be used towards the debt.
Vice Mayor Zwick -Add to the record - It has always been the understanding that
whatever funds we received for the sale of the property would be used to reduce the debt.
Nothing was put in writing as to not restrict future Commissions.
Mayor Newill - We are going to have a difficult time with our budget this year. We have
subsidized the water plant by $650,000 this year. The money will not be there next year.
Will not vote for a give away sale just to reduce the rates.
3. PRESENTATIONS
A) Building Department Update
Rcibert Dawson -Building Official
" My D.epartriient is often considered both good and bad guys. Good guys because we are
•
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'June 3; 2008 Page 4 of 12
• working to protect occupants and owners from unsafe construction and unlicensed and
uninsured individuals. Bad guys because we often stop code complaint work from
proceeding. This does from time to time have owners angry at delays, until they realize we
want them to have work that meets code. We want the building to stand up to hurricanes
and to withstand a fire long enough to allow the occupants to flee to safety. In 2006/2007,
we issued about 1500 permits and performed 3600 inspections. Of the permits issued, we
have streamlined the process by allowing certain types of permits -water heater change-
outs and A/C change-out to be applied by fax. This system allows emergency repairs when
we are closed as to not inconvenience our citizens unnecessarily. We are also the
department that processes all applications for variances, Planning Board review
applications, and all code enforcement work. In addition, we also provide assistance to our
residents and condo associations.
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B) Presentation of the 2006-2007 Comprehensive Annual Financial Report
Nowlen, Holt & Miner, P.A. Auditors
Ed Holt, Managing Partner
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the Town of Highland Beach, Florida's basic financial
statements. The introductory section, combining fund statements, other supplemental
information, and statistical data listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the basic financial statements of the Town
of Highland Beach. The combining fund statements and other supplemental information
have been subjected to the auditing procedures applied in the audit of the basic financial
statements taken as a whole. The introductory and statistical sections have not been
subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
September 30, 2007
Governmental Activities Business-type Activities TOTAL
Assets $11,337,171 $21,032,268 $32,369,439
Liabilities
Total Net
Assets
5,589,382
$ 5,747,789
14,839,431
$ 6,192,837
20,428,813
$11,940,626
Rec_r~rnendations:
Accounts Receivable - In order to ensure proper valuation of the accounts, we recommend
that the reconciliation be performed monthly and that reconciling items be resolved
promptly. Ire--addition, we recommend that accounting management review and initial the
reconciliations..to ensure propriety and completeness.
Payroll - We recommend that as a routing procedure, the accuracy of the payroll
calculation be rechecked by an employee other than the one originally preparing the
payroll. ,
Town Commission Minutes
•June 3,' 2008 Page 5 of 12
• Commissioner Sorrelli -Why was the report late again? Mr. Holt - It was not our fault
that it was three weeks late. There was a problem with payroll records that needed to be
clarified. Getting the job done is important. Mayor Newill - We will need to resurrect the
Audit Committee and let them be the judge.
4. BOARDS AND COMMITTEES
A) Board Correspondence
• None
B) Board Action Report
• Report read into the record by Town Clerk Brown
C) Board Vacancies
• None
C) Monthly Board Meetings -read into the record by Town Clerk Brown.
• Planning Board -June 4~' -Continuation of Milani Park P.H. - 9:30 A.M.
• Beaches & Shores Advisory -June 10th -Regular - 9:30 A.M
• Code Enforcement Board -June 18`~ -Regular - 9:30 A.M
• Planning Board -June 19th -Regular - 9:30 A.M.
Public Hearing to follow
• Beaches & Shores Advisory -June 24~' -Workshop - 9:30 A.M.
• Cultural Board -June 26th -Regular - 9:30 A.M.
• 6. NEW BUSINESS
A) Acceptance of the 2006-2007 Year-End Audit Report
Town Mana eg_r Su eg ~an -You can either accept or not accept the report. It is a
professional opinion, and the action of the Town Commission is not about approving
the report.
MOTION: Commissioner Pagliaro moved to accept the 2006-2007 Year-End Audit
Report; seconded by Commissioner Sorrelli.
Motion carried by unanimous voice vote.
B) Authorizing Entering into a Palm Beach County Law Enforcement Mutual Aid
Agreement
'T'own. Mana er Su eg rman - In Palm Beach County, the 24 existing police
departments along with the School District, FAU, and the Palm Beach County
- Shexiff s Office always enter in a Mutual Aid Agreement for the provision of
operational assistance and voluntary cooperation between all of these departments.
The current Mutual Aid Agreement is set to expire in January of 2009. The
• Agreement includes a couple of revisions from the existing one, including
ahthorization for responding officers to deal with both felonies and domestic
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_'June 3,:2008 Page 6 of 12
•
violence. If approved, the Agreement will run through January 31, 2013.
MOTION: Commissioner Sorrelli moved to authorize the Mayor, the Town
Manager and the Chief of Police to sign the Mutual Aid Agreement; seconded by
Commissioner Pa liaro.
Motion carried by unanimous voice vote.
C) Authorizing theplacement of a referendum issue on the November 4, 2008 ballot
asking the voters of Highland Beach for approval to pay the remainder of the
outstanding debt on the Reverse Osmosis Water Treatment Plant through the use of
voter approved ad valorem taxes instead of adjusting water rates to accomplish the
same.
Town Mana eg_r Su eg rman -Budgeted Water Revenues in the 07-08 Budget were:
$2,429,270; Actual and Estimated Revenues are $1,688,273.80; Difference or a
short fall in revenue is: ($749,996.20); Mid-year budget transfer from General
Fund (OS-06) $650,000.00; leaving a difference of ($90,996.20).
Options are: 1) Ask the voters in November of 2008 to approve the use of ad
• valorem tax revenues to pay the second half of the outstanding annual debt service
payments. Note -Cash from this option will not flow into the Utility Fund until
December of 2009 - 18 more months. 2) Adjust rates now as provided for in
ordinance 07-003 with an effective date of the June-July billing cycle. Cash from
this option will flow into the utility Fund after August 1, 2008 - 2 more months.
3) Adjust rates now as provided for in Ordinance 07-003 O with an effective date
of the December 2008-January 2009 billing cycle. Cash from this option will not
flow into the utility Fund until February 1, 2009 - 9 more months. Will result in
another $500,000 in missed revenue.
MOTION: Vice Mayor Zwick moved to authorize the placement of a referendum
issue on the November 4, 2008 ballot; seconded by Commission Pa lg iaro.
Discussion:
Vice Mayor Zwick -This is what our residents have been asking for. They would
rather use ad valorem taxes rather than increasing rates.
Commissioner Trinley -Those who use the most water will be in favor of it; those
who do not will be against it?
Mayor.Newill - I believe that this is the direction the Commission should take. Let
the 3,2t7d voters decide what is best for them. The Commission is facing some
- serious financial concerns.
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'June 3; 2008 Page 7 of 12
•
ROLL CALL VOTE:
Vice Mayor Zwick - Yes
Commissioner Pagliaro - Yes
Commissioner Sorrelli - Yes
Commissioner Trinley - Yes
Mayor Newill - Yes
Motion carried by unanimous vote.
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.
MOTION: Commissioner Sorrelli moved to remove Ordinance No. 07-003 O
from the table; seconded by Vice Mayor Zwick.
• Motion carried by unanimous voice vote.
PUBLIC HEARING•
Mayor Newill opened the Public Hearing by having ORDINANCE N0.07-003 O
read into the record and requesting comments from the public.
Joe Yucht -Boca Hi lands
You have just approved a referendum question asking the voters to approve using ad
valorem taxes to pay for the building. What will increasing the water rates do?
Town Manager Su e~ -The water rates do not bring in enough revenue to pay
for all the expenses. The Town transfers tax monies into the water fund yearly to
cover the shortages created by the bonds and notes. Mr. Yucht -This information
should be shared with the public. Mayor Newill - We are developing an information
package and presentation to share with the voters.
Receiving no further comments, Mayor Newill closed the Public Hearing.
Discussion:
Vice Ma~or~wick - If we approve this ordinance, and the referendum passes, can we
go back and .lower the rates? If we don't raise the rates, we will continually be
fP.~ding a~ valorem taxes into the water plant. I am in favor of raising the rates with
the understanding that they will revert to the lower rate if the referendum passes.
•
Town Commission Minutes
'June 3; 2008 Page 8 of 12
• Town Manager Su erman -The rates can be readjusted if the referendum passes. But
there are some rates being lowered with this ordinance. If the electors approve the
referendum, I will look to the Commission to reverting the rates back.
MOTION: Vice Mayor Zwick moved to adopt Ordinance No. 07-003 O on second
and final reading; seconded by Commissioner Trinlev.
ROLL CALL VOTE:
Vice Mayor Zwick - Yes
Commissioner Trinley - Yes
Commissioner Pagliaro - Yes
Commissioner Sorrelli - Yes
Mayor Newill - Yes
Motion carried by unanimous vote.
Vice Mayor Zwick -When the property is sold, the water rates will be adjusted if the
referendum is a success.
C_ ommissioner Trinlev -Can all the pertinent information be shared with the residents
through the water bills?
7. MISCELLANEOUS -ITEMS LEFT OVER
. A) Consideration of Entering into an Agreement with the Bell David Planning
Group, Inc. of Miami, Florida for the Preparation of the Town's Evaluation
and Appraisal Report
Town Mana eg r Su eg_rman -The plan for the completion of the Evaluation and
Appraisal Report, which was due June 1, 2006, is still to be determined. I have asked
the Bell David Planning Group to work with Bob Dawson to attempt to come up with
a balanced plan where out staff does as much as of the work as we can. The revised
cost estimate by Bell David for the completion of the EAR is $18,000. They have
advised that based on statutory requirements, and their expertise, it will take no less
than 200 hours.
Discussion:
Vice Mayor Zwick -Town Manager are you still willing to offer your services?
Mana e~ eg rman -There revised proposal is still high. Could do it as Town
Manager and use time on the week ends. Mayor Newill - If the Commission is going
to have the Town Manager do it, he would also have to get Bob Dawson into it. Do
not "Tike to spend a dollar, but are we putting to much on our staff? Can we table this?
As this is-the time he should be working on the budget. Town Attorney SlineX -This
is a technical plan, but we have hardly any undeveloped land? Do not know of any
fine. Do not see the urgency. Mana e~ eg rman -The only time there would be a
penalty is if we were going to change the Comp Plan. There are a few parcels of
• undeveloped land in town that we could get a zoning change request. If we do not get
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'June 3; 2008 Paae 9 of 12
the EAR done, we would be penalizing ourselves for the next 24 months, as we could
• not do anything. Commissioner Trinlev - We should approve the contract and have it
done professionally. Commissioner Pa liaro maybe we should table it for now.
MOTION: Commissioner Trinlev moved to enter into an Agreement with Bell David
Planning Group for $25,000 for the preparation of the Town's Evaluation and
Appraisal Report; seconded by Vice Mayor Zwick.
ROLL CALL:
Commissioner Trinley - Yes
Vice Mayor Zwick - Yes
Commissioner Pagliaro - Yes
Commissioner Sorrelli - No
Mayor Newill - Yes
Motion passed with a 4-1 Vote.
B) Annrovine the offering of a Voluntary Early Retirement Program to Town Employees
Town Mana eg_ r Su eg rman -Last week, my office introduced to the Commission the
concept of offering Town employees a voluntary early retirement program. This item
appears on the agenda in order for the Town Commission to take action on the matter
• (either to grant approval or deny the program). Since last week's meeting, two items
have come to light which changed the basic initial information. One of the eight
missed the eligibility date by one month if we set the trigger age as 57 1/s. Reducing
the age to 57, the eligibility list would still remain at 8 employees. Second the Finance
Department originally did not calculate the value of sick leave at 100%. If a118
eligible employees accepted the voluntary early retirement, the final cost would be
$567,729.83. Employees have until July 16 to accept the offer, so the final numbers
will not be known until it is determined how many actually accept the option. The
voluntary retirement package would include if approved: 100% cash out of vacation
leave accruals; 100% cash out of sick leave accruals; the equivalent of a lump sum
payment of 90 days of salary; and 12 months of continuing employee health insurance
premiums. If this package is approved, all eight employees will be notified this week.
MOTION: Commissioner Sorrelli moved to approve the offering of a Voluntary
Early Retirement Program to Town Employees; seconded by Vice Mayor Zwick.
ROLL CALK;
Commissioner Pagliaro - Yes
Commissioner Sorrelli - Yes
-Commissioner Trinley - Yes
~- ''Vice Mayor Zwick - Yes
1Vlayo~ Newill - Yes
t _
• Motion ca+rr~ed with a unanimous vote.
Town Commission Minutes
`June 3: 2008 Page 10 of 12
•
8. REPORTS -TOWN COMMISSION
Commissioner Pa liaro - No Report
Commissioner Sorrelli - Will be out of Town for the next two meetings.
Commissioner Trinley - Where is the new phone system? Z. Bur ess - It has been
ordered, just waiting for a proposal for the new service. It should be resolved by the end
of the month.
Vice Mavor Zwick - Will the microphones be replaced soon? Town Clerk Brown -
The quote came in at a higher number than expected, so have been trying a few different
options. Vice Mavor Zwick -Would like them replaced.
Mayor Newill -During the recent campaign I received numerous questions about the
Police Department which have been answered and comments about keeping the Town
Manager. I know he has been tempted twice to leave. I would like to go back and
review his contract.
MOTION: Commissioner Pa liaro moved to authorize the Mayor to meet with the Town
Attorney and the Town Manager to revisit the Town Manager's contract; seconded by Vice
Mavor Zwick.
Discussion:
Commissioner Pa lg iaro -When was the last time he received araise/? Mayor Newill - At
his last review in March. Town Mana eg_r Su eg rman - When I was hired, it was under an
employment agreement of an unknown entity. The Mayor might be alluding to the
language of the agreement. Commissioner Sorrelli - We put a freeze on spending. Why
are we making an exception? Manager Su eg rman- People are getting their raises, it is a
hiring freeze.
ROLL CALL:
Commissioner Pagliaro - Yes
Commissioner Sorrelli - Yes
Commissioner Trinley - Yes
,Vice Mayor Zwick - Yes
Mayor Newill - Yes
Motion carried with a unanimous vote.
9) REPORTS -TOWN ATTORNEY
• • IVo F.Eport
Town Commission Minutes
• June 3', 2008 Page 11 of 12
• 10) REPORTS -TOWN MANAGER
The closed door session for the Collective Bargaining meeting will be held in the large
conference room in Town Hall immediately following the close of this meeting.
11) CONSENT AGENDA
MOTION: Vice Mayor Zwick moved to approve the Consent Agenda; seconded by
Commissioner Pa liaro.
Motion carried by unanimous voice vote.
Consent Agenda:
A) Reappointments:
Cultural Board: - 3-Year Term (6/1/08 - 5/31/11)
Emily Firtell
Betty Altman
Lois Feldman
Planning Board - 3-Year Term (6/1/08-5/31/11)
Patricia A. Pembroke
B) Appointment -Cultural Board -3-Year Term (6/1/08-5/31/11)
• Rene Yucht
C) Minutes Approval
Workshop Meeting - Apri130, 2008
Regular Meeting -May 6, 2008
12) PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
None
13. AD TOURNMENT
here being no further business to come before the Commission, Mayor Newill adjourned
the Regular Meeting at 5:50 P.M. upon a MOTION by Vice Ma, or Zwick seconded by
Commissioner Sorrelli. ~
r`
i /~f/~L,
APPROVE:
Jim Ne ill, CPA, Mayor
•
Miriam S. Zwick, e Mayor
•
Town Commission Minutes
~`
Doris M. Trinley, Commi
John J. Sorrelli, Commissioner
John J gliaro, C issioner
ATTE5
~~,~ ~ LJ~~~~_~
Bev 1 M. Brown MMC
Y
T n Clerk
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