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2021.03.29_FAB_Minutes_Special TOWN OF HIGHLAND BEACH TOWN FINANCIAL ADVISORY BOARD SPECIAL MEETING MINUTES Town Hall / Commission Chambers Date: March 29, 2021 3614 South Ocean Boulevard Time: 2:00 P.M. Highland Beach, Florida 33487 1. CALL TO ORDER Chairperson Stern called the meeting to order at 2.03 P.M. 2. PRESENT UPON ROLL CALL Member Ronald Reame Member John Stump Member Richard Greenwald Member Neil Eisenband Chairperson David Stern Administrative Support Specialist Ganelle Thompson ADDITIONAL STAFF PRESENT Town Manager Marshall Labadie Finance Director Matthew Lalla 3. PLEDGE OF ALLEGIANCE Chairperson Stern noted that today is Vietnam War Veterans Day and the Board members led the Pledge of Allegiance. 4. APPROVAL OF THE AGENDA Chairperson Stern read the title into record. MOTION: Stern/Reame - To approve the agenda as presented. The motion passed on a 4 to 0 vote. 5. PUBLIC COMMENT There were no preregistered public comments. Financial Advisory Board Special Meeting Minutes Page 2 of 6 Date: March 29, 2021 6. APPROVAL OF MINUTES A. December 17, 2020 Chairperson Stern read the title into record. Member Eisenband joined the meeting at 2.05 P.M. MOTION: Stern/Reame- To approve the minutes as presented. The motion passed on a 5 to 0 vote. 7. UNFINISHED BUSINESS A. Discussion of Town Commission Salary Comparison Chairperson Stern introduced this item and discussed the possibility of raising the Town Commissioners salaries, noting that there has been no salary increases for the Mayor or The Town Commissioners since 2004. MOTION: Stern/Stump - Effective the first of next month (April 1, 2021), to increase the salaries of the Commissioners and the Mayor by twenty percent, which would represent increases of$2,400 for the Commissioners and $3,000 for the Mayor. Both Members Reame and Stump were in favor of raising the Commissioners and Mayor's salaries. Member Reame stated that the Commissions salaries should be raised by $5,000. Member Greenwald commented that the current salaries were generous enough compared to other municipalities. The motion passed on a 4 to 1 vote with Member Greenwald dissenting. 8. NEW BUSINESS A. Presentation and discussion of the Highland Beach Fire Feasibility Study Town Manager Labadie introduced this item and stated that there are three alternatives the Town Commission is considering. He stated that the Town is considering renegotiating with the City of Delray Beach based on the findings of the consultant in order to lower the cost of services, looking into creating a municipal fire department, and looking into private EMS services to provide the medical needs of the Town. Mr. Robert Finn with Matrix Consulting Group joined the meeting virtually. Chairperson Stern asked Mr. Finn what would happen if the Town chose not to continue with the Delray Beach Fire Department, and what kind of an impact it would have on their response time, on their costs, on their coverage and if there is any motivation for them to negotiate based upon the additional financial responsibilities that they will have. Mr. Finn Financial Advisory Board Special Meeting Minutes Page 3 of 6 Date: March 29, 2021 explained that Highland Beach is responding to just as many calls in Delray Beach as they are answering calls in Highland Beach. Meanwhile, Delray Beach is answering fewer calls in Highland Beach. In addition, Highland Beach is providing more service than they are receiving. He also explained that Highland Beach is first due in Delray Beach where a gap has been identified in their station coverage and the Highland Beach station is better able to provide coverage to that area than any other station in Delray Beach. The City of Delray Beach is able to see value with Highland Beach remaining with the City of Delray Beach because of this. The Board discussed whether or not it is a large incentive for the City of Delray Beach to have the Town stay with their municipality for fire services as well as the benefits to both municipalities keeping fire services with Delray. Member Reame shared concerns about the projected cost of the municipal and public safety hybrid, where the Town provides all services including EMS transport done under the public safety concept. Mr. Finn stated that although those numbers were not provided to the Board members, they should be included in the final report. He stated that it would be less than the municipal standalone department, as the Police Chief and Deputy would become the leadership of the new department and that there would be less requirement for command staff in the new department. Town Manager Labadie elaborated on the public safety model of a possible standalone station. The Board members discussed possible issues with the fire safety models of firefighters reporting to the Police Department. Mr. Finn stated that it would be based on the leadership and managerial skills and less about the technical operation skills at that level. Member Eisenband discussed the possibility of higher insurance cost for taking on the fire department, and stated that he would imagine that when a new fire department is started, they would not automatically receive the highest Insurance Services Office (ISO) rating. Mr. Finn explained that it was less likely the Town would receive an ISO rating that was class one, and more likely the Town would receive a three. He explained that it would depend on the insurance company, as several company base-rates on multiple factors in determining the rates and that as long as the ISO rating was a one, two or three, the department would be in a lower rate tier. Member Eisenband questioned if those rates are considered and included in the projected cost. Member Reame explained how the ISO ratings are calculated and stated that half of the rating is determined by water. The Board members spoke about the downside risk of going with a new department, and if the Town would be successful in forming their own department. Mr. Finn explained that he has not seen agencies that began their own department fail; however, he has seen a number of them revert back to the old ways when they tried consolidation. He explained that there is no indication that the Town would not be successful in forming their own department. The Board members continued the conversation with a discussion on transport, as it relates to reimbursements, and if the municipality goes after a secondary insurance for any additional charges when the insurance used is Medicaid or Medicare. Mr. Finn Financial Advisory Board Special Meeting Minutes Page 4 of 6 Date: March 29, 2021 explained that typically the acceptance of these two forms of insurance as payment is considered paid in full and the reimbursement is typically lower than what the invoice is for. Town Manager Labadie explained that starting October of 2020, the City of Delray Beach moved to a private vendor to collect payments as their uncollectable was too high. He explained how the Town would possibly go about collecting for services, which he stated would be outsourced. The Board members discussed the basic transport charges that may be included, the discrepancies between in-service cost versus actual cost, and the discrepancies in what was billed to Highland Beach versus what the Town should be paying. Member Greenwald thanked Mr. Finn for providing the Town with viable alternatives and discussed the advantages in quality and the benefits of having a Town owned fire department. Mr. Finn discussed the opportunities for community education programs, and also explained the biggest risk for the Town in their decision in forming a municipal department is that the Town is currently part of a six-station system that has a lot of flexibility with how resources can be administered and the amount of manpower that can get to a more critical scene quicker than the Town would be able to retain as a standalone. He explained the possible challenges with Mutual Aid Agreements, if any. Town Manager Labadie provided additional comments on One-Station Fire Departments and Mutual Aid. He explained that the Town Commission does not want the Town to go out on their own and that they would like to be able to renegotiate. He also discussed the three-person rescue system that includes lieutenants that the City of Delray has implemented in their new model. Mr. Finn explained the difficulty in the ability to obtain safer grants that provide aid to fire departments across the country because they are highly competitive and require someone skilled in grant writing who is able to express the need. MOTION: Stern/Reame - To support the direction the Town Commission is headed within appointing the committees investigating the three alternatives and that the Financial Advisory Board stands ready to support financially with any comments they need going forward. Member Greenwald suggested the Town Commission consider the possibility of a continued discussion with the City of Boca Raton, as well as consideration into how long the background discussions, consultations and negotiations should take before starting the proverbial clock. Member Stump concurred with Member Greenwald stating that he received the contract six months ago. The motion passed on a 5 to 0 vote. Financial Advisory Board Special Meeting Minutes Page 5 of 6 Date: March 29, 2021 B. Finance Department Report and Update. Finance Director Lalla presented this item and provided a PowerPoint presentation on the current status of the Towns unaudited general fund revenues, unaudited general fund expenditures, the net general fund surplus the lack of significant changes in the Towns Capital assets, no additional long-term debt in the Town's various funds, discretionary sales surtax special revenue fund, the building department special revenue fund, water enterprise fund, sewer enterprise fund, and the Town's investments. Finance Director Lalla stated that the Town is in solid financial condition (for more information about this item, please visit the Town's Media Archives & Minutes webpage to access and view the audio/video recording). 9. BOARD MEMBERS COMMENTS Chairperson Stern thanked Member Eisenband for his service on the Financial Advisory Board. 10. ANNOUNCEMENTS April 06, 2021 - 1.00 P.M. Town Commission Executive Session Meeting and Attorney/Client Executive Session April 06, 2021 - 1.30 P.M. Town Commission Meeting April 08, 2021 - 9.30 A.M. Planning Board Regular Meeting (Cancelled) April 20, 2021 - 1:30 P.M. Town Commission Meeting April 22, 2021 - 3:00 P.M. Financial Advisory Board Regular Meeting (Tentative) The Board discussed the April 22, 2021, Financial Advisory Board meeting and agreed to leave the schedule as is, in the event that the Town Commission tasks the Board with any additional duties at their April 20, 2021, meeting. Financial Advisory Board Special Meeting Minutes Page 6 of 6 Date: March 29, 2021 11. ADJOURNMENT Chairperson Stern adjourned the meeting at 3:42 P.M. APPROVED at the August 19, 2021, Financial Advisory Board Meeting. Ck OpQOR4lF 3 _ { /,� ATTEST: r ..�+ David Stern, Chairperson SEAL � PLO R�O� Transcribed by Ganelle Thompson Administrative Support Specialist G Ile Thomps n, ate A inistrative upport Specialist Disclaimer: Effective May 19, 2020, per Resolution No. 20-008, all meeting minutes are transcribed as a brief summary reflecting the event of this meeting. Verbatim audio/video recordings are permanent records and are available on the Town's Media Archives & Minutes webpage: tittps iinignlanaaeacn-ti.municoaemeetings.com