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2015.12.14_FAB_Minutes_Regular TOWN OF HIGHLAND BEACH MINUTES OF THE FINANCIAL ADVISORY BOARD REGULAR MEETING Monday,December 14,2015 9:00 A.M. Members Present: Board Member Dragos Alexe, Board Member David Buchsbaum, Board Member Bruce Giacoma, Board Member Stephen Golding, and Board Member Edward Kornfeld.Absent:Board Member Ronald Robins and Board Member Lori Wolin. Also Attending: Finance Director Cale Curtis,Deputy Town Clerk Patrice Robinson, Commissioner Louis Stern, Commissioner Rhoda Zelniker, Town Manager Beverly Brown,Mayor Bernard Featherman[arrived at 9:25]and members of the public. CALL TO ORDER: Member Giacoma called the Regular Meeting to order at 9:00 A.M. in the Town Commission Chambers.Roll call was taken by Deputy Town Clerk Robinson followed by the Pledge of Allegiance. ADDITIONS,DELETIONS OR ACCEPTANCE OF AGENDA: Member Giacoma called for any additions, deletions to the agenda, hearing none, the agenda was accepted as presented. PUBLIC COMMENTS AND REQUESTS: There were no public comments. PRESENTATIONS: A. Introduction of New Member Stephen Golding Member Golding introduced himself and provided his background. The Board welcomed Member Golding. B. Introduction of New Member Ronald Robins This item was not heard due the absence of Member Robins. APPROVAL OF MINUTES: • August 20,2015—Regular Meeting Financial Advisory Board Regular Meeting Minutes Monday,December 14,2015 Page 2 of 7 Member Giacoma called for a motion to approve the August 20,2015 Regular Meeting minutes,as presented. MOTION: Member Golding moved to approve the minutes of the August 20, 2015 Regular Meeting as presented.Member Buchsbaum seconded the motion,which passed unanimously. OLD BUSINESS: A.Appointment of Board Chair Member Giacoma called for nomination(s)for the office of Chair. MOTION:Member Buchsbaum moved to elect Bruce Giacoma as Chair of the Financial Advisory Board.Member Golding seconded the motion,which passed unanimously. NEW BUSINESS: A.Review of 2015-2016 Adopted Budget Finance Director Curtis provided a review of the 2015-2016 Adopted Budget.At the final budget meeting,the Town Commission adopted a tax rate of 3.5 mills,which was a further reduction from the roll back rate of 3.70.The 0.45 mills is 11.3%less than the tax rate last year.The Town is in a fortunate position to lower taxes.The tax rate that was adopted produces$6.97 million in taxes,which is about$370,000 less than last year. The total general fund budget was adopted at$10,745,000,which is$630,000 less than the prior year. The repaving of the Town Hall parking lot is estimated at $100,000. Interior renovations to the fire station is estimated at$50,000. A utility rate study is currently underway.The two major projects that were approved back in March of last year under referendum are the water main replacement project which is estimated at$3.75 million and the water plant chemical system project is estimated at$1.25 million.The water main and the chemical delivery system have been awarded design contracts.The design contract for the water main replacement has come in at $363,000 and the design contract for the chemical system has come in at$267,000.Both projects were approved by referendum and they are moving along under design.We are 2'/1 months into the budget and there isn't much to review and reflect on. I think the Financial Advisory Board had a larger role in the process last year which I think was very helpful to the Town Commission. Member Kornfeld—The total of the two major projects is under a million dollars?Finance Director Curtis—No.We're estimating the total for both projects to be$5 million.Member Kornfeld—What are the two numbers that you gave?Finance Director Curtis—The water main replacement is estimated at$3.75 million. The chemical system is$1.25 million. Member Kornfeld—That is more than we anticipated.I thought we would use the state funding. Finance Director Curtis—Yes.Member Kornfeld—The state funding is flexible. Financial Advisory Board Regular Meeting Minutes Monday,December 14,2015 Page 3 of 7 We just estimated what we would need.Finance Director Curtis—We went to referendum for up to an amount of$5 million.We assumed these projects would come below that. Member Giacoma requested to be informed to be informed if there were issues. Member Alexe—Are there any changes to the fire services contract with Delray from a financial perspective? Finance Director Curtis — Yes. We are currently in contract negotiations. We finalized our negotiations with the City of Delray Beach and the Commission will be hearing the contract on Friday.The new contract will provide for a ten year extension but it will also provide fire service vehicles.Member Alexe—Is there an increase?Finance Director Curtis—According to my projections,we are basically at a spending neutral. There will not be much of an increase.Member Komfeld—The budget does cover the cost of this contract?Finance Director Curtis—Yes. Member Buchsbaum—Are there any significant variances in the first 2'/2 months relative to the budget?Finance Director Curtis—No.That's typical for this time of year.Residents of Highland Beach typically take advantage of paying their taxes early and getting the 4% discount.Our tax revenue floods in the month of December.That's probably the major variance in the budget.You'll see that revenues and ad valorem taxes are a lot higher in December than if they just bought in equal amounts over 12 months.Member Kornfeld— I'm assuming the money received is going to the usual spots at very low interest but very safe.Finance Director Curtis—Yes.Member Giacoma—There are no high interest rates. There was a brief discussion about interest rates. Member Buchsbaum—Can we have an update on where we are with the state financing on the water infrastructure project?Finance Director Curtis—Before we issued RFPs and RFQs for engineering services, I reached out to the state Department of Environmental Protection to find out their process and procedures.The first thing we had to do was get on their funding list.To do so we provide them with a background of the projects and they take a look at it and say yes or no regarding if they qualify for the funding.We have been able to get on their funding list.The next step in the process is to have the design team put together a design and bid documents.The bid documents will then trigger the next step in the process.There are specific rules with regard to bidding on these projects that we must follow with regard to the state.Within our design scope we have included that the engineer will assist the town in that process along the way.Both of the engineering firms that we have hired are very familiar with the SRF(State Revolving Fund)loan program. I don't anticipate any trouble along the way with getting these projects funded. The financing terms are still extremely favorable.Member Buchsbaum—Is there any way to review it just before it is submitted?Finance Director Curtis—The review will come from the staff level.Our contact will review it to make sure that we're not missing anything.Member Buchsbaum—When do you think you will know the answer on that?Finance Director Curtis—The design is scheduled.I think we have 180 days in design.The loan program allows for administrative allowances that don't require backup for costs incurred.At 180 days once we have those bid documents put together we'll probably put together a mock draft of our loan packet to make sure that it's 100%funded.We'll know a lot more at 180 days. Financial Advisory Board Regular Meeting Minutes Monday,December 14,2015 Page 4 of 7 B.Review of Resolution No.15-012 R/2016 Meeting Dates Meetings shall occur as called for by the Town Manager. Member Giacoma stated the meetings shall be called by the Town Manager on an as needed basis.Member Buchsbaum—This is a resolution that has already been passed.Member Giacoma—Yes. Member Buchsbaum—Before it was put up for adoption,why didn't we know about it.It would have been nice to know that there was a resolution affecting our Board before it's adopted. There was discussion about being notified in advance. Finance Director Curtis — The Commission wanted some uniformity in the way that advisory boards call their meetings. Each board had their own individual rules on who called a meeting. The Commission asked that the Town Manager put together some uniformity for all of the Boards and this was the solution they were satisfied with. Member Komfeld—At our last meeting,we passed two resolutions.One was not acted upon and one was reducing the tax rate lower than we had resolved.I think we should have been made aware of the outcome of those two resolutions.Member Buchsbaum—I don't know if that is always the Finance Director's responsibility.If there is a resolution affecting our Board directly,I'd request that the Deputy Town Clerk send us what may be proposed if it's available.The millage rate was very well publically disseminated.Most people were aware of it because of the public discussion. Member Komfeld—The resolution I made was to review all the personnel policies and procedures to determine if we are competitive.If we are too low we will lose employees and if we are too high then we have to do something about it.Member Buchsbaum—I would suggest that this is the Chair's responsibility to follow up. Member Alexe—I do have a question related to the budget.I think we took note a couple of meetings ago to look into better human resource practices for performance reviews for town employees. I know that we have been looking at reducing their compensation package,which I didn't think was a good idea.The Town Manager took note of looking at a better way to access performance reviews. Member Komfeld—That was part of my resolution to review all aspects of personnel regulations. Member Alexe—What is the status on that?Has it been agreed to reduce their compensation?Finance Director Curtis— One of the proposals that you addressed at your final budget workshop was to hold off on making any personnel changes until a comprehensive review was done. That recommendation was passed on to the Commission,but it was not acted upon. We are currently getting ready to go through a complete review of the Town's personnel rules and regulations in which a lot of these human resource matters will be addressed specifically. Member Komfeld—Is the hiring of a consultant still on the table or has it been decided by the Commission not to do it? Finance Director Curtis—That would be something that would be decided by the Commission. Financial Advisory Board Regular Meeting Minutes Monday,December 14,2015 Page 5 of 7 Member Buchsbaum—When would be the appropriate time for that to be raised with the Commission? Finance Director Curtis — We are planning to review the rules and regulations at the January workshop meeting.Member Giacoma—Can we expect to be a part of the process? Finance Direction Curtis—That would be up to the Town Commission and Town Manager to decide.Member Giacoma—Would someone like to put that into a motion as far as being kept in the loop? Member Buchsbaum—I think we need more specificity.Member Giacoma—We should be a part of the process.Member Buchsbaum —In terms of the new policy with the Town Manager and calling meetings what is the process that you would like us to follow?Town Manager Brown—You can be notified when the Commission decides to have their workshop to discuss personnel rules and policies so that a member of this Board can speak for the whole advisory board. A consultant had been hired at the end of 2013 and the personnel rules had been adopted by the Commission in January 2014.The Town Commission wants to review the personnel policies.I am not certain if they are in favor of hiring a consultant to do it.If you pass a motion then we can bring it to the Commission. Member Buchsbaum—We already passed a motion.Member Kornfeld—The motion was more far ranging in updating the rules of 2014.My presentation indicated that it was done properly but there were other areas that should be looked at regarding benefits,hiring practices and payroll levels.There was a comment made about employees that have reached the maximum of their pay range.In my experience when employees reach the maximum pay they are jumped to another category with a title change.There has to be a way of handling employees that reach the maximum of their pay range. Town Manager Brown — The consultant that we hired reviewed communities of the same size and responsibilities.There was a survey and everyone had to write down exactly what they did.A lot of the job descriptions are an overall guesstimate of what you do but what we actually do is different. So they reviewed them with communities of the same size in the same geographic district and that's how they came up with the salary ranges for positions. Unless the employee takes on additional responsibilities,we are not going to change the position just because the maximum of the salary range has been reached. Member Komfeld—I was more focused on payroll and benefits. Town Manager Brown—Another problem is that we have had some employees who have been here 25 or 27 years.If the job description hasn't changed we are not able to advance them to another position. Member Kornfeld—That's good news and bad news. It's a quandary if we continue that. There has to be a way to handle that. Town Manager Brown—This past year everyone that had reached the maximum of their salary range was given a bonus which was 3%of their salary.Even though their salary didn't change they got a bonus of 3%,which was given in one lump sum. Member Kornfeld—It doesn't increase their base?Town Manager Brown—No.Member Komfeld—There are solutions. If this person is a good employee then we don't'want to lose that person.How do we work with such a system or modify a system in order to accommodate these situations? Town Manager Brown—The Commission also adopted a longevity bonus this year.It had been in the personnel rules for a long time and then it was removed a couple of years ago.Long time employees are given some benefit for staying here and being a good employee. Member Komfeld—The bonus is not a part of their base salary?Town Manager Brown— It does not go in their base salary.Member Komfeld—There are ways to deal with this.I believe it is best to do it within a whole global structure of everything an employee gets Financial Advisory Board Regular Meeting Minutes Monday,December 14,2015 Pane 6 of 7 and how we can compensate them properly. Town Manager Brown—I will bring it up at the workshop. Member Giacoma—Is there any further business? Member Buchsbaum—At the last meeting I raised the issue of the police union contract being made available to the board before negotiations begin.Can I have an update on when it will be available? Finance Director Curtis — The current contract is good through September 30'2017. When we have our first discussion with the Town Commission regarding opening up negotiations,I will advance the Board's desire to be a part of that process. Member Giacoma—Is there any further business? Member Komfeld—If this is outside the purview of the Board then let me know. A letter was received by a homeowner regarding a police foundation which is doing good work to support our police department. It said that they paid for and supplied the police department with body cameras. My reaction was that if we have a$3 million budget and Chief Hartmann requested the cameras why it was not included in the budget. Member Giacoma—I am on the Board. Chief Hartmann indicated that this was something that would be of assistance for the police.As a result the creation of the foundation enabled the police to get some additional opportunities should they need it.Chief Hartmann believed that the body cameras were a very important tool as far as protecting the officer so that there is no confusion as far as what actually occurred while on duty. There was further discussion amongst the Board regarding the foundation being a good idea and the generosity of the community. ADJOURNMENT: There being no further business to come before the Board,the meeting was adjourned at 9:29 a.m. Financial Advisory Board Regular Meeting Minutes Monday, December 14, 2015 Page 7 of 7 APPROVED: ffl_ Dragos • r x-11oar ember 1 1\144,./-id 6 , 6,„“1\6-6.--2--- David Buchsbaum, Board Member 71 L��V Bruce Giacom.. Hoard Member est r- .Q ri Stephen Qojding, Board Mem-er ,/ i j_______ TOWN SEAL Edw. d :. to• el•, B•ar• Member ed) Absent . Ronald Robins, Board Member Va erie Oakess,CMC Town Cler Date: /1 . t D+ Q6 l 9- Absent Lori Wolin, Board Member