2009.10.27_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
WORKSHOP MEETING
Tuesday, October 27, 2009 1.30 PM
Mayor Jim Newill, CPA called the Workshop Meeting to order in Commission Chambers at 1:30
PM.
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 minute of silence in
honor of members of the military, both living and deceased.
Civility Pledge: The Civility Pledge was recited by the Town Clerk.
1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA
Agenda accepted as submitted.
2. PUBLIC COMMENTS AND REQUESTS
Arnold Banks -President of Boca Highlands Center Board
We are confronted with a novel legal and political situation involving four separate entities.
There is the FDOT which has given their un-conditional written commitment to Boca
Highlands for the issuance of a permit for the construction and installation of a pedestrian
traffic signal at their A 1 A crosswalk. This approval was based upon an independent study
conducted by the DOT of the vehicle and pedestrian traffic at the crosswalk. This study results
in their recommendation for the installation of a pedestrian traffic signal to be privately funded
by Boca Highlands. This signal would remain green for vehicular traffic for an estimated 98%
of the time. Boca Highlands has complied with all of the DOT requirements and has spent
substantial sums of monies in reliance upon the DOT's approval of their application. We are
prepared to fund the traffic signal and have received multiple bids for the construction and
installation of a signal. The DOT also required approval from Palm Beach County with an
agreement by the county to assume maintenance of the proposed signal after installation. We
Town Commission Workshop Minutes
October 27, 2009 Page 2 of 11
have received a written commitment from the county to do so. After having two hearings, I
doubt that there is anything further that can be said that will change the opinion of advocates
for or against the signal. However, I wonder if any thought has been given to the contingent
liability that the state and the town may face in the event that the state decides to renege on
their commitment and denies the permit for the traffic signal and a serious accident occurs
resulting in serious bodily injury or death. We have been fortunate to date but surely this is an
accident waiting to happen. There is now of public record the DOT's recommendation for the
installation of a pedestrian traffic signal in recognition of the safety issue. In addition, the
intervention and opposition of the Town that might result in denial of the permit would also be
of record. What a dream state of facts this would present to a plaintiff's attorney representing
an injured party or an estate of a deceased person killed in an accident. Boca Highlands has
acted in good faith and is an innocent party to the conflict between the state and the town.
Despite all rhetoric, the one indisputable fact that stands out is that we have a serious public
issue that must be addressed.
Seymour Strauss -Boca Highlands
The Lyric Chamber Orchestra is going into rehearsals starting next month. The Orchestra
draws the largest audience for any event in Highland Beach. Would like to be able to advertise
their concerts and show them live on Channel 97. The fee for these events is only $10.00 per
show. Some years we do not collect enough money to cover the gas expense for the
performers.
Mayor Newill -Town Attorney can you check into this. Would we lose our free broadcasting
channel by advertising paying events? Town Attorney -Will look into it.
3. PRESENTATIONS
A) Police Chief Craig Hartmann introduced the newest member of the Management Team -
Lieutenant Eric Lundberg. Chief Hartmann stated Lieutenant Lundberg's qualifications
for the Commission.
B) Water and Wastewater Rate Study
Town Manager Su e~ - In order to meet our commitment to the public of lowering the
water rates as a result of the public vote in November 2008 which authorized a new ad valorem
tax on the second half of the outstanding indebtedness of the water system, we commissioned a
rate study with the firm of Camp Dresser & McKee. The lead engineer on the rate study was
Dan Anderson who has handled the Town's last three rate analyses. The results of the rate
study will be incorporated into a new rate ordinance which will be introduced under the
Ordinances & Resolutions portion of the agenda. Since this is a workshop meeting, no action
on the proposed rate ordinance can be taken at this time.
Dan Anderson, P.E., BCEE; Camp Dresser & McKee Inc.
The Town authorized Camp Dresser & McKee (CDM) to prepare a water and wastewater rate
study in April 2009. The driver for the water component was the approval of the November
2008 referendum providing for full servicing of water system debt. The amount of annual debt
Town Commission Workshop Minutes
October 27 2009 Page 3 of 11
service removed from the water system revenue requirements is approximately $1.18 million.
The driver for the wastewater component was the fact that the City of Delray Beach increased
the charge for wholesale wastewater service to the Town during Fiscal Year 2009. CDM
prepared a cash flow pro forma for each of the systems individually to forecast the rate
adjustments required annually through Fiscal Year 2014. For the water system, rate reductions
are projected to be achievable for Fiscal Years 2010 and 2011, with the potential need for
upward adjustments beginning in Fiscal Year 2012 depending on inflation. We recommend the
Town adopt reduced water rates. For a three year average of Fiscal Years 2010 through 2012,
an overall rate reduction of approximately 2.5 percent could be achieved while providing
revenue sufficiency. We recommend that the rate reductions be applied to the volume charge
components only. For the three existing tiers of the inclining volume block structure, we
recommend that the first tier be reduced by 3.2%; the second tier by 4.2%; and, the third tier by
5.2%. We recommend the Town adjust its wastewater rates. For a three year average of Fiscal
Years 2010 through 2012, an overall rate adjustment of approximately 19.5 percent is projected
as necessary to provide revenue sufficiency. Because the wastewater user charge is a fixed
monthly amount, all customers would experience this same percentage change in their bill for
this component. On a combined bill basis, the overall percentage change will depend upon
usage levels. For example, a customer using 1,000 gallons every two months would experience
a change in their bi-monthly bill from $65.12 to $71.47, or by $6.35, equating to 9.8%.
Alternatively, a customer using 40,000 gallons every two months would experience a change in
their bi-monthly bill from $201.21 to $201.37, or by $0.16, equating to 0.1%. As a point of
reference, for both existing and recommended water volume charges, the equivalent uniform
volume charge to generate the same amount of revenues falls between the first and second tiers
of the inclining block structure. Under the recommended rates, the volumes are grouped
slightly more closely around the equivalent uniform volume charge.
4. BOARDS AND COMMITTEES
A) Board Correspondence
• None
B) Board Action Report
• None
C) Board Vacancies
• Beaches & Shores Advisory Board -One Unexpired term (7/10)
Interview:
Susan Hiles - 4324A S. Ocean Blvd.
Mrs. Hiles stated that she was a full time resident and a turtle volunteer. She is
interested in preserving the environment and our beaches.
Consensus: The appointment of Susan Hiles to the Beaches & Shores Advisory
Board to fill the unexpired term ending 7/10 to be included on the November 3, 2009
Consent Agenda.
Town Commission Workshop Minutes
October 27, 2009 Page 4 of 11
• Beaches & Shores Advisory Board -Three Full Terms beginning in Dec. 2009
• Boca Raton Airport Advisory Committee -Three-year Term (01/2010 - 2013)
• Cultural Advisory Board -One Unexpired Term (5/11)
• Cultural Advisory Board -One Unexpired Term (11/11)
D) Monthly Board Meetings
• Beaches & Shores Advisory Board -Nov. 10th -Regular - 9:30 AM
• Planning Board -Nov. 11th -Regular - 9:30 AM
• Bd. of Adjustment -Nov. 17th -Regular - 9:30 AM
• Cultural Advisory -Nov. 19th- Regular - 9:30 AM
• Complete Count Committee -Nov. 19th - 10 AM
5. PROPOSED ORDINANCES AND RESOLUTIONS
A) Ordinance No. 09-004 O (Second Reading and Public Hearing -11/3/09)
AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF HIGHLAND
BEACH, FLORIDA, RELATING TO THE RENEWAL OF A GAS FRANCHISE
WITHIN THE TOWN OF HIGHLAND BEACH: GRANTING TO FLORIDA PUBLIC
UTILITIES COMPANY, ITS SUCCESSORS AND ASSIGNS A GAS FRANCHISE;
IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO;
PROVIDING A CONFLICTS CLAUSE AND SEVERABILITY CLAUSE;
PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
Town Clerk Brown read the Ordinance, title only, into the record.
Town Manager Su e~ -The ordinance is scheduled for second reading and public hearing
at the November 3, 2009 Regular Meeting. No action is scheduled, but it gives the opportunity
for the Commission to ask questions or make additional comments.
B) ORDINANCE N0.09-005 O - (First Reading 11/3/09)
AN ORDINANCE OF THE TOWN OF HIGHLAND BEACH AMENDING IN FULL
THE TOWN CODE, CHAPTER 22 ENTITLED "SEWERS," SECTION 22-2
ENTITLED "SERVICE CHARGES", AND SECTION 22-4 ENTITLED "BILLING
PROCEDURES; DELINQUENCY", AND CHAPTER 29 ENTITLED "WATER
SYSTEM", SECTION 29-10 ENTITLED "CHARGE FOR WATER SERVICE", AND
SECTION 29-11 ENTITLED "BILLING DATES; DELINQUENT BILLS;
DISCONNECTION" AND PROVIDING FOR AN EFFECTIVE DATE.
Town Clerk Brown read the Ordinance, title only, into the record.
Town Mana eg r Su eg rman -Now that the Town has conducted a utility rate study, in order to
implement the results of the study, the Town Commission will have to consider an ordinance
with a public hearing conducted before the final adoption but after the second reading. The
proposed rate ordinance reduces the water rates and adjusts the wastewater rates upward,
specifically as a result of the increase in wholesale sewer rates imposed upon the Town by the
City of Delray Beach. In summary, for all classes of water, rates will go down effective with
Town Commission Workshop Minutes
October 27, 2009 Page 5 of 11
the first utility bill due on or after February 1, 2010. For all classes of wastewater customers,
rates will go up from $16.45 per unit to $19.66 per unit. Finally, the new rate ordinance
imposes a 1.5% late fee per month (18% per annum) and removes the current (flat-fee) late fee
of $3.29 per month. This item is being presented for discussion purposes only. If it meets with
your approval in its draft form, we will place the first reading of the Ordinance on the
November 3rd regular Town Commission meeting agenda.
C) RESOLUTION N0.09-014 R
A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF
HIGHLAND BEACH, FLORIDA, AMENDING RESOLUTIONS NO. 833 AND
NO. 859 WHICH ESTABLISHED THE CULTURAL ADVISORY BOARD
Town Clerk Brown read the Resolution, title only, into the record.
Town Manager Su e~ - At the October 6th Regular Town Commission meeting a
discussion was held on whether or not the Cultural Advisory Board's enabling legislation
allowed for individuals, other than Highland Beach residents, to participate in Cultural
Advisory Board activities. As it turns out, the enabling legislation is not particularly clear on
the matter. We have drafted a resolution which could be used to amend the existing Resolution
No. 833 which originally created the "Cultural Board." Since this is a workshop meeting, the
draft resolution contains a number of alternatives from which the members of the Town
Commission can pick and choose how the modified legislation should be crafted. Alternative
#1 -Participation in activities of the Highland Beach Cultural Advisory Board is restricted to
residents of Highland Beach only. Alternative #2 -Participation in activities of the Highland
Beach Cultural Advisory Board is not restricted to residents of Highland Beach only and any
resident o£ a) Palm Beach County, b) the State of Florida, c) the United States; may participate
in Cultural Board activities. We have even placed a complete blank at the bottom of the draft
resolution should there be any alternative thoughts of the Town Commission. With specific
guidance and direction from members of the Town Commission, we will craft a final proposed
Resolution which will be placed on the November 3rd regular Town Commission agenda.
Commissioner Trinlev -Would like to discuss the merits of this resolution and how we might
proceed with a third alternative. I recently received a four page brochure from the Friends of
the Library listing their activities for the month of October. The only activities for the Cultural
Advisory Board are classes being held in the Cultural Art Center in our building. The art
instructors use our facilities, free of charge, and charge the participants for the classes. Since
its inception, the Cultural Advisory Board has had six members quit within a few months of
appointment, one member completed his three-year term; and two members are deceased.
Commissioner Pa lg iaro -How many people participate in the classes? Renly - Do not know.
Comm. Pa lg i~o - If Highland Beach is offering the classes in our facility, they should be
restricted to Highland Beach residents only.
Commissioner Trinlev -Think the Cultural Board should go into sunset mode by the end of
the year.
Town Commission Workshop Minutes
October 27, 2009 Page 6 of 11
Vice Mayor Zwick -All the alternatives should be considered at the next meeting.
Mayor Newill -Town Manager place on the agenda for the regular meeting with the three
alternatives.
Town Mana eg r Su eg_rman - I will add a third option: "sunset the Board by 12/31/09" to the
draft resolution.
D) RESOLUTION N0.09-015 R
A RESOLUTION OF THE TOWN OF HIGHLAND BEACH, FLORIDA,
AMENDING RESOLUTION NO. 08-009 R WHICH APPROPRIATED FUNDS FOR
THE 2008-2009 FISCAL YEAR BUDGET, WHICH BEGAN OCTOBER 1, 2008
AND ENDS SEPTEMBER 30, 2009.
Town Manager Su eg_rman - As mentioned in my Weekly Update Report this past Friday, we did
not discover the final Water Fund shortfall until after the close of the workshop meeting agenda,
and therefore, this item is being passed out at the meeting. The Town's fiscal year ended on
September 30, 2009, however, the books are kept open for the next 60 days to allow for any
outstanding bills (encumbrances) to come in and to be paid out of last year's budget. We will
officially close those books completely by November 30~'. As we get to the final closing, we go
through the budget and adjust the bottom line for any department that has come in overspent for
the year. There are four adjustments that need to be made this year. The final, year-end
adjustments are: General Fund: Post Office (increase) - $1,500.00; Water Fund (increase) -
$200,000.00; Reserve for Contingency (decrease) - $201,500.00. Sewer Fund: Sewer Fund
(increase) $45,000.00; Appropriation from Reserve (decrease) $45,000.00; Net Sewer Fund
Change - $0. The net effect of the re-appropriation of these dollars is $0.00 both in the General
Fund and in the Wastewater Fund. That is, we are covering the Post Office shortfall and the
shortfall in the Water Fund by taking money from the Reserve for Contingency line item of the
General Fund budget. In the case of the Sewer Fund, there were not enough dollars in its
Reserve for Contingency, so funds have to be appropriated from the Fund Balance of the Sewer
Fund.
Commissioner Sorrelli -Why the increase in the Post Office? Deputv Finance Director Curtis
- There was an error in the salary line item, and it was overspent by $1,500.00.
Vice Mayor Zwick - In the Water Fund #401-533-000-563.000 -what is the improvements
other than Building? Deputv Finance Director Curtis -This was the appropriation in the 2008
budget to cover the design fee for the AlA water transmission line. Unfortunately, this line
item was not carried forward.
Mayor Newill -Item to be included on the November 3, 2009 Consent Agenda.
Town Commission Workshop Minutes
October 27 2009 Page 7 of 11
6. NEW BUSINESS
A) Authorizing the Mayor to sign the Second Amendment to Interlocal Agreement
R2001-2103 for the use of the County's 800 MHz Radio System
Town Mana eg r Swan -The Town's Police Department uses Palm Beach County's 800
MHz Trunked Radio system for purposes of communication amongst the members of the
department and with other police agencies throughout the County. The system is owned and
operated by Palm Beach County. We have an Interlocal Agreement (R2001-2103) which
coordinates and allows for our use of this radio system. The Agreement, dating back to 2001,
is set to expire at the end of this year. We would like to renew our agreement with the County
because this is a cost effective method for maintaining radio communications. The County has
offered us a four year renewal, using the same terms and conditions of the original 8 years.
The renewal must be approved by the Commission and the Agreement must be signed by the
Mayor. Chief Hartman is in attendance to answer any questions.
Vice Mayor Zwick - Is this the radio system that is used when you dial 911 after hours our
people are dispatched? Reply -Yes.
Mayor Newill -Item to be included on the November 3, 2009 Consent Agenda.
B) Authorizing the Purchase of Two 85 HP Submersible Pumps for Lift Station #1
Town Mana eg r Su eg rman -Wastewater Lift Station #1 has been having continuing problems
with the two pumps which move the wastewater through the lift station. The new budget
contains a capital purchase line item of $70,000 for the purchase of two replacement pumps.
Our pump vendor, ITT Water & Wastewater is the only certified Flygt Pump vendor serving
the State of Florida and a copy of their quote along with their sole source letter is included with
the recommendation cover memo from Jack Lee, Public Works Director. Funds are available
in the Sewer Fund budget, account numer 402-525.000.564.000 Machinery and Equipment for
this purchase.
Commissioner Pa lg iaro -Will these two pumps alleviate the problem at the lift station?
Reply -Yes.
Commissioner Sorrelli - What does the Engineer have to say about this problem? Utility
Maintenance Supervisor Bill Moore -The pumps currently in use at lift station # 1 were
purchased and installed in 2003. These pumps have been in the repair shops for repairs to the
bottom end due to rags clogging up the volute and causing damage to the impellers and wear
rings. The new pumps use specially designed impellers and wear rings that can handle the rags
in the sewer system. They have a sharp cutting edge on the wear rings and impellers which
allows the impellers to cut the rags into very small pieces, thereby eliminating the blockages.
The old pumps cannot be modified to install the cutters on the pumps.
Town Commission Workshop Minutes
October 27, 2009 Page 8 of 11
Commissioner Pa liaro - Can we advertise not to throw those rags down the drains? Bill
Moore - 90% of it is cleaning services, maids, Holiday Inn. We met with Holiday Inn and they
have stopped using some of the supplies that were creating a problem. These pumps have been
rebuilt twice since installation. The availability of these types of cleaning rags was not
common back in 2003 when the pumps were initially purchased.
Mavor Newill -Item to be included on the November 3, 2009 Consent Agenda.
7) MISCELLANEOUS -ITEMS LEFT OVER
A) Minutes
August 6, 2009 -Budget Workshop
August 18, 2009 -Budget Workshop
August 25, 2009 -Workshop Meeting
September 1, 2009 -Regular Meeting
September 3, 2009 -Budget Public Hearing
Receiving no additions or correction, minutes to be included on the November 3rd Consent
Agenda.
8. REPORTS -TOWN COMMISSION
Commissioner John Pa lg iaro - No Report.
Commissioner John Sorrelli - Where does the money from police violations do? Town
Marra eg r Su eg rman - If the ticket issued is a statute violation, we do not receive any of it. If
the violation is a town ordinance, we receive a portion of it.
Commissioner Trinlev - No Report.
Vice Mayor Zwick - As you approach the Spanish River intersection on Federal Highway,
there is a sign with an arrow that states Highland Beach. When you come over the Spanish
River Bridge there is no further indication of which way to turn to go. Is it possible to ask
DOT to install a sign indicating the direction of Highland Beach? Commissioner Sorrelli -
Once before we requested a sign, but Boca Raton refused to let us install it. Town Manager
Sugerman -The appropriate authority is FDOT, since it is a state road. Do not believe Boca
can deny the installation. Do you want to encourage people who do not have a specific reason
to come to Highland Beach, as we do not have any commercial property?
Mavor Newill -Yesterday, held my 7~' Coffee with the Mayor, with a large audience in
attendance. Discussions included: traffic light; bikes; dogs and dogs on the beach; and people
living on boats. The next coffee is scheduled for January 25, 2010.
Town Commission Workshop Minutes
October 27 2009 Page 9 of 11
9. REPORTS -TOWN ATTORNEY
No Report.
10. REPORTS -TOWN MANAGER
A) Authorizing the Town Manager to Make an Offer to Purchase a Set of Engineering
Plans
On October 16th, I sent a letter to Jim Wolfe, FDOT District 4 Secretary, asking him to hold off
on issuing the permit for the proposed pedestrian activated traffic control device for the Boca
Highlands crosswalk. In that letter it was my suggestion to Mr. Wolfe that I would ask the
Town Commission for authority to make an offer to the Boca Highlands Beach Club and
Marina, Inc. to purchase their engineering plans for an amount not-to-exceed $20,000.00.
Secretary Wolfe committed to me that he would hold off on issuing the proposed permit until
the offer was made and responded to. Therefore, it will be my recommendation to the
Commission to authorize me to send a letter to the General Manager of the Boca Highlands
Beach Club and Marina, Inc., with an offer of $20,000.00 to purchase their engineering plans
for the proposed pedestrian activated traffic control device. No formal vote can be taken at this
meeting, since it is a workshop meeting. If there are no objections from the members of the
Commission, this item can be placed on the Consent Agenda for the November 3rd meeting.
Commissioner Pa 1~ iaro -Consent Agenda.
Commission Sorrelli - Do not like the sound of this. Are we going to own the plans? Manager
Su eg rman -Then we would be the permit applicant for the light. Town Attorney Sliney -
Point is -this would be a public service. We would be the applicant and permit holder, then
the Town could decide if we want to apply for the permit. Some times you have to spend
money to get to a certain position. Comm. Sorrelli - We have been tightening our belts. If we
have an extra $20,000.00, let's give it to the employees.
Mayor Newill -Due to my occupation, I will have to think this recommendation through
thoroughly. When I ran for office, I committed to the voters that I would keep the Town like it
is.
Town Attorney Sliney - The Town's Comprehensive Plan classifies AlA as a minor arterial
highway with no traffic lights.
Mayor Newill -Include on the November 3rd Consent Agenda and any Commissioner may
vote to exclude it if they so choose.
Town Commission Workshop Minutes
October 27, 2009 Page 10 of 11
B) Request for an Executive Session -Collective Bargaining Negotiations
Town Manager Su eg rman -The Town has received the first set of demands from the Florida
State Lodge Fraternal Order of Police on behalf of the members of the Highland Beach patrol
officers' and sergeants' union. We will be holding our first collective bargaining session with
the union later today. Once we have a full understanding of their positions and demands, Jim
Cherof and I would like to meet with the Town Commission in an Executive Session to discuss
these items and prepare the Town's response. If Commissioners are available immediately
following the November 3rd regular Commission meeting, we can then go into an Executive
Session in the large conference room.
Consensus is to meet immediately following the November 3rd meeting.
C) Consideration of cancelling the December 29th Commission Workshop Meeting
Town Mana er Su erman -The regularly scheduled Workshop meeting of the Town
Commission for the month of December falls on Tuesday, December 29th. This falls during
the week between Christmas and New Years. In past years, the Town Commission has seen fit
to cancel this meeting because members of the Commission, members of the staff, and the
general public are tied up with family and holidays. It is likely that little or no business would
be conducted at this meeting, especially since it is only a workshop meeting anyway. If the
Commission should choose to cancel this meeting, it will need to be done by a formal motion,
second, discussion and vote.
Mayor Newill -Item to be included on the November 3, 2009 Consent Agenda.
11. CONSENT AGENDA
None
12. PUBLIC COMMENTS AND REOUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
Joe Yucht -Boca Highlands
Truly amazed by the paltry offer being made for the plans for the pedestrian light. If I have
anything to say about it, we will not accept anything less than $200,000.00. Heard no reason
why the Commission is against the light. The Commission said they knew nothing about it.
Harold Hagelmann brought it up in 2004. The Commission should have known about it since
the spring. You are not interested in the facts.
Eleanor Banks - 4750 S. Ocean Blvd.
Was the letter that Arnold Banks read into the record garbled? I could read it again.
Arnold Banks -President -Boca Highlands
Will submit a copy of the letter for the record tomorrow with the clerk's office.
Town Commission Workshop Minutes
October 27, 2009 Pale 11 of 11
13. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned the
Workshop Meeting at 3:05 PM upon a MOTION by Commissioner Pa~liaro; seconded by
Commissioner Sorrelli.
APPROVED:
Jim Neill, CPA, Mayor
('
ATTEST:
:~
Be rly M. Br , MMC
Date
Miri S. Zwick, V~ ayor
Q-L~,
Doris M. Trinley, Commissioner