2010.08.17_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
BUDGET WORKSHOP MEETING
Tuesday, August 17 2010 1:30 PM
Mayor Jim Newill, CPA, called the Workshop Meeting to order in the 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. Superman; Town
Clerk Beverly M. Brown; Deputy Finance Director Cale Curtis; Library Director Mari Suarez;
Public Works Director Jack Lee; Police Chief Craig Hartmann and Assistant to the Town
Manager Zoie Burgess.
Fledge 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:
Mayor Newill - I would like to take a personal privilege and make the following statement:
I would like to take this opportunity to thank Dr. Superman and the staff for preparing a
balanced. budget without cutting services or personnel and still give us a tax rate cut for the
fourth year. Dr. Superman has proved himself invaluable to Highland Beach and me in his
five plus years of service. I believe he has proved himself worth his weight in gold to us,
which with the price of gold today, far exceeds the $140,000.00 he is paid. Again, thank
you, not only for the service and help you have provided me, but your commitment to the
residents of this Town.
2. PUBLIC COMMENTS AND REQUESTS:
Arlin Voress -4403 Intracoastal Drive
I have not seen the revised budget which is my own fault. At the last budget workshop, I
questioned if there was money to convert the Library to Windows 7, which is the current
operating system throughout the country. The answer was that it was not included in the
Town Commission Budget Workshop Minutes
August 17, 2010 Pase 2 of 6
budget. I was then asked how much it would cost. Not knowing, but never quiet, I stated
$50,000.00. Since then, I have gone back and asked the Library staff to investigate the cost.
The actual cost would be $8,000.00. When Dr. Sugarman talks about the revised budget, I
hope he will talk about this upgrade in the operating system as it was never in the original
proposed budget. After talking to business acquaintenances in Washington DC, the
consensus is that everyone is going with Windows 7. When people come back this fall, the
Library should have up-to-date software on our computers, so I think we ought to include
another $8,000.00 in the Library's budget.
3. DISCUSSION OF PROPOSED ZO10-2011 BUDGET:
Town Mana eg r Sugarman -We have not made significant modifications to the budget since
our first budget workshop on August 3`~. Your agenda packet included an outline of the
changes that were made. I will walk you through them verbally, and then will answer any
questions that you might have. This will lead up to a final outline of the budget that will
formally be presented to the Town Commission for a first vote at the September 16~', 2010
public hearing.
The following modifications have been made to the 2010-2011 annual operating budget:
Increases in the General Fund Revenues - 1) FDOT street lighting subsidy - $12,915.00;
2) Administrative reimbursement - $13,800.00 from Utilities to the General Fund; 3)
Appropriation from Reserve - $48,483.00. Because of all the pluses and minuses that filtered
their way through the budget after the last workshop, the appropriation from reserves now in
the budget is $48,483.00. This means additional money needs to be taken from reserves to
balance the budget.
We have formalized additional expenses in the General Fund. Those increases include:
1) Employee health insurance premiums - $36,427.80. 2) Advertising for The Highlander -
$20,000.00; an increase of $8,000.00 from $12,000.00 to $20,000.00. This line item is not
just for The Highlander, but also includes all of the advertising done by the Town. 3)
Expense far part-time Administrative Assistant-Finance - $21,888.00. This position was
initially left out of the proposed budget. 4) Based on discussion at the last workshop,
increased the Library book & magazine line item by $20,000.00. My further conversation
with former Mayor Voress took place after the agenda was formalized. It is his request to
have the computers in the Library upgraded to Windows 7 operating system. The quote I
received was between $7,000.00 and $9,000.00. That figure is not included in these changes.
So, if the Commission does want to authorize the money for an upgrade to Windows 7 in the
Library, I would suggest using the $9,000.00 number. That would mean we would need an
additional $9,000.00 appropriation from reserves. That money is available, but it would
increase the Appropriation from Reserves to $57,483.00.
There have also been some decreases, and some of those were disclosed during the first
presentation. 1) Elimination of two computers in Town Clerk's budget - $2,000.00. 2)
Reduction in salary/benefits of part time Clerk in Building - $9,125.00. Unfortunately a long
time employee has passed away in the Building Department. Her salary was at the top of the
Town Commission Budget Workshop Minutes
August 1'7, 2010 Page 3 of 6
pay range. When we hire a replacement, we will not be hiring someone at the top of the
salary range.
Changes within the Utility Funds have also been previously discussed. 1) Increase in
employee health insurance premiums - $17,376.92. 2) Had a mistake, and had to increase
the gasoline expense in the Water Department to $1,500.00. 3) We did not have in the budget
the sewer department contribution for administrative reimbursement from Water to the
General Fund - $13, 500.00. 4) Increase in the administrative reimbursement from Sewer to
Water - $8,348.00. 5) Have reduced the annual sewage treatment expense $50,000.00 based
upon further analysis. 6) We reduced the appropriation from Sewer Fund Reserve
$58,652.00 because we do not have as much expense for sewer treatment. 7) Increased the
appropriation from Sewer R&R - $24,500.00. 8) Created a Reserve for Contingency line
item in the Sewer Fund - $7,500.00. Items 4,5,6,7 & 8 are all new items, but the bottom line
has not changed.
Just as a few reminders, unless instructed otherwise by the Town Commission, it is my plan
to undertake the following five steps after this budget workshop to be prepared to implement
certain activities once the budget year gets underway on October 1, 2010. These steps
include: 1) The General Fund Reserve for Contingency will remain budgeted at
$200,000.00. 2) A piggy-back contract for janitorial services wilt be presented to the Town
Commission during the month of September. 3) A revised contract for outside financial
services, which will be a significant decrease, will be presented to the Town Commission
during the month of September. 4) We will post advertisements for the following positions:
Finance Director; Accounting/Payroll Officer; Administrative Assistant-Utility Billing -part
time; 5) Beginning October 1, 2010 the performance evaluation program will be put on a
one yeaz experimental hold.
Of course, since this is the final budget workshop meeting, we can discuss any topic that the
Commission would like to discuss. Once this workshop meeting closes, we will begin to
prepaze the 2010-2011 budget resolution which will get its first reading on September 16~' at
5:01 pm and its final reading on September 27~` at 5:01 pm.
4. COMMISSION QUESTIONS & DISCUSSIONS:
Mayor Newill -Still strongly opposed to experiment of not having evaluations. The way I
look at it, it is bad governance. Our employees will be sitting out there for 2 yeazs not
knowing what their supervisors feel their abilities or disabilities are. It will be disastrous.
Commissioner Trinlev -Have the funds for the 5% merit increase been included in the
budget? Manager Sug-erman -Yes they are. The assumption is that everyone will receive a
5% merit increase on their anniversary date. Comm. Trinlev - I agree with the Mayor. Not
in favor of putting evaluations on hold.
Commissioner Pa iazo -Cannot feel that this program will create an absence of supervisory
duties. Mayor Newill -You are lessening the amount of work the supervisors will have to
Town Commission Budget Workshop Minutes
August 17 2010 Page 4 of 6
do. Comm. Pagliaro -Cannot imagine the Town staff performing fewer duties. Would like
to see, not necessarily now, but I am a strong believer in self evaluations. A lot can be gained
between a supervisor and the employee in setting up objectives and discussion how each
views their own work. I have a lot of faith in the supervisors of this Town. Mayor Newill -
Have worked with that type of evaluation in the past and it has always been very valuable.
My problem is if you do not have a formal evaluation and a deadline to complete it, in some
cases it will not get done or be less than what it should be.
Vice Mayor Zwick -The word supervisor carries with the title that it is a supervisory
position. If a supervisor feels that an employee is lax, why would they have to wait until the
end of the year to address it with the employee? I would think he would like to address it
immediately. Putting the written evaluation on hold has some merit. The supervisor, by the
very nature of their job, should be able to address a problem when it occurs. Feel this is the
better way to operate. In favor of putting it on experimental hold for one year.
Commissioner Sorrelli -Agree with suspending the evaluations for one year.
Mayor Newill -Part of the evaluation process is meeting prior year's goals and establishing
new goals for the upcoming year. Mr. Manager you have your answer. Three Commissioners
are in favor of your experiment and two axe against.
Town Manager Sugerman -This is a one year experiment in not using the evaluation form.
During this one year experiment, I will keep a close eye on things. Six months into it, I will
give the Commission a written outline of my observations and a critique on whether or not
this experiment is working or failing, or alternatives that can be used at the end of the
experiment. I have no intention of letting performance lapse or using this as an experiment
to ignore responsibilities. This is just an experiment to see if I can ease some of the pain and
suffering that many of our employees endure if they receive anything other than an excellent
rating from their supervisors. I am looking for a better way and I think this one year
experiment may give us an opportunity to explore some other alternatives. I commit to you
that I will not allow responsibilities to lapse or productivity to decrease.
Mayor -Any fiutl-er questions?
Town Manager Sugerman -Does the Commission want to give me some input on the
Windows 7 Operating System for the Library? The quotes we have received are between
$7,000.00 and $9,000.00. I would prefer going with the higher figure.
Commissioner Sorrelli - Go with the $9,000.00
Vice Mayor Zwick - It is a good idea.
Commissioner Pagliaro - I also agree. Dr. Sugerman, you spoke highly of XP. Will you be
looking at Windows 7 for Town Hall? Have you closed the door on Windows 7?
Town Commission Budget Workshop Minutes
August 17, 2010 Page 5 of b
Mana eg r Su eg rman - No, not at all. Zoie and I have talked about Windows 7 and we both
think it is too early to change. In the 2010-2011 budget, I would not spend any dollars to
upgrade the Town Hall network on Windows 7. We are fine with XP.
5. REPORTS -TOWN COMMISSION:
A) Commissioner John Pagliaro - No Report.
B) Commissioner John Sorrelli -Will anything be done for Jean Gilbert on his
anniversary? Town Clerk Brown -With the last retirees, we had cupcakes and
punch in the Commission Chambers.
C) Commissioner Doris M. Trinley - No Report.
D) Vice Mayor Miriam S. Zwick - No Report.
E) Mayor Jim Newill, CPA - No Report.
6. REPORTS -TOWN ATTORNEY:
No Report.
7. REPORTS -TOWN MANAGER:
No Report.
8. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
Arlin Voress - 4403 Intracoastal Drive
Thank you for investing in our Library.
9. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned
the Budget Workshop Meeting at 2:07 PM. upon a MOTION by Commissioner Pagliaro;
seconded by Commissioner Sorrelli.
APPROVE: ~
~CQ~L
Jim Ne 1, CPA, May/of r
Miriam S. Zwick, Vii Mayor
Town Commission Budget Workshop Minutes p e 6 of 6
Au st 17 2010 ~~AA
/'l
Dori . Trinley, Commissioner
ATTEST:
Beverly M. Bro MM
Date