2010.08.31_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH
l~~IINUTES OF TOWN COMMISSION MEETING
WORKSHOP MEETING
Tuesday. Au ,gust 31, 2010 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; Assistant to the Town Manager Zoie Burgess; 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 twice by the Town Clerk.
1. ADDITIONS. DELETIONS OR ACCEPTANCE OF AGENDA
Mayor Newill asked for any additions or deletions.
Town Manager Sugerman - I would respectfully ask that Item #6B be removed from today's
agenda.
Mayor Newill -Town Attorney, what is the proper procedure? I am at a loss as I see in the
audience quite a large number of people that I feel are here to comment on that subject. Shall we
pull it? Do you have an opinion?
Town Attorney S1ineX - Is it to be pulled permanently? Manager Sugerman - As the individual
that created the agenda item, I am asking that it be pulled permanently. It does not preclude
anyone from the public speaking during public comments. Town Attornev S1ineX - It could be
pulled and comments can be made during requests.
Mayor Newill - Do any of the Commissioners have an objection to pulling this item?
Town Commission Workshop Minutes
August 31, 2010 Page 2 of 9
Commissioner Trinlev -Town Manager can you explain why you want it pulled?
Town Manager Sug_erman - I am the individual that created the agenda item. I have had individual
discussions with select members of the Town Commission, although I invited all members of the
Town Commission to discuss it with me. Based upon input that I received, it is inappropriate to
have this agenda item go forward.
Mayor Newill -Item #6B is removed from the agenda. But it does not mean any individual who
came to speak on the subject may not do so.
Mayor Newill -Town Manager do you want to introduce your special guest?
Town Mana eg, r Su erman -With me today is my oldest daughter Arin Council. Arin is here from
Denver visiting. I am glad that she is here.
The Commission welcomed Arin Council to the meeting.
2. PUBLIC COIVIlVIENTS AND REQUESTS
John Rand - 4211. Intracoastal Drive
I am somewhat surprised that our Town Manager is somewhat apprehensive about his future in
that position with our Town. So much so, that he is being considered as a candidate for a similar
position with two different municipalities in South Florida. To me that is tantamount as a threat,
that if he doesn't get from you what he is proposing, he will consider resigning from his position.
It has always been my understanding that an employment contract is designed to assure that an
employee will not be discharged without cause for a specific period. But if it does happen he will
be given adequate severance. By the same token, the employer can count on that employee to
remain in that position for the same period, but if he resigns, he has to give 90 days notice. I
frankly do not see the need at this time to change the contract which the Town of Highland Beach
has made with the Manager, especially since I am not aware that his job is in jeopardy.
Furthermore, I am sure the Town Commission is cognizant of the fact that the existing contract
already provides for renewals for three-years, on a one-year renewal basis. This contract does not
expire until June 30, 2011. It would seem to me that is the fairest way to deal with any further
extension of this contract by future Commissions who will eventually replace the present members
due to term limits. The Town Manager has, and will always have a severance protection of one
year's salary plus certain other benefits if he is terminated without cause, regardless of who are the
Commissioners in power at the time of such an action. I am of the opinion that a detailed report
should be presented to you to reflect the actual cost involved if the proposed changes are approved.
I also suggest that the Town Attorney should review this matter for any possible legal implications
or by-laws violations. How can this Town Commission make a decision specifying salary
increases for the next five years which would force future Commissions to approve such increases
whether or not they are satisfied with the Town Managers performance. I respectfully ask you not
commit this matter over to the Consent Agenda on September 7'~.
Arlin Voress - 4403 Intracoastal Drive
I also came prepared to discuss this proposal. I am very much opposed to this program. I am
opposed for several reasons. There is an interchange of language. We pay Dale so much basic
Town Commission Workshop Minutes
Au~31, 2010 Page 3 of 9
salary aggregate. All the numbers that relate to the basic salary, whether health & medical caze;
life insurance; vacation pay and so forth need to be included in the total figure. I took the budget
data from the Town budget and looked how much is being paid to the Town Manager's budget,
and my numbers show that it is azound $300,000.00. We do not pay him that much in cash, but it
is a big bunch of change. When he proposes to the Town Commission that he wants to see an
increase of 5%, 4% and 3%, I do not know what numbers he is talking about. I would suggest
before this Commission looks at any proposal that the Town Manager makes, that there is a full
understanding of all the elements chazged to the Town Manager's budget and how much would
follow him if he chooses to leave. Furthermore, I truly believe if Mr. Sugerman believes he could
find a better job with another municipality, and he specifically states Lauderdale-by-the-Sea and
Hallandale Beach, I think this Commission should give him their best wishes to go there and get
on with it. We should see that he has the right to pursue whatever his programs aze that he wishes
to do. Do not want to see a change made in the Managers' contract until we have a full
understanding of how much monies aze paid into the Town Manager's account, how much would
it change if someone else was appointed to that position, and how much it would cost if he chooses
to go.
Joe Asselta - Casaurina
I came at the request of some citizens who called me late last night, and I did not understand what
was happening. I called a Commissioner and the Mayor as the agenda did not indicate very well
what was happening. I am not here regarding the contract itself. I came here for a concept which
we should be watching very carefully. The budget that is in place is in the black by a very slim
line. Any nudging will put us in the red. We have a couple of yeazs of very questionable financial
status. We do not know what is going to happen. My recommendation in coming here is to let us
wait until after the November elections to see if we can get a feel of what is happening in the
country, in the state, in the county, and in the Town. We really do not know. So much is at stake
right now. The uncertainty for the next two years is as such, that we should be prepazed however
the election goes. We aze either looking at a two yeaz recovery time, a 5-10 yeaz recovery time, or
a disaster. We do not know. I would suggest very strongly that we do contingency budgets for the
next two years weighing the loss of revenue that we will be getting. We have all lost value on our
homes during the last assessment from the County Appraiser. We are about the level of the
assessed values of 10 yeazs ago. The income to the Town is severely reduced. Hopefully we aze at
the bottom of that level. However, we have not reached the cost or expenses. The reason I would
have opposed the contract is that we want to limit our exposure. We do not want to take a chance
that we are stuck with long term contracts without the money to pay for them. So we should be
looking at a contingency. If we have reduced income, how aze we going to handle it? Will we be
going to a four day Town Hall, or a five day with limited hours? Who gets the priority?
Obviously the fire department and police department aze #1 and #2 priorities. The next priority is
the library. With the income level of the people in Town being reduced, the library is picking up
more traffic. I consistently use the library and have seen a great influx of residents relying on it
more and more. We might have to go to shorten hours at the post office. My suggestion is for the
Commission to be very cazeful. Be conservative when it comes to expenses. We have a runaway
freight train running out of Washington, do not let it trickle down to Highland Beach.
Town Commission Workshop Minutes
August 31 2010 Page 4 of 9
Leonard Bell -Villa Magna
I came, not to speak on the agenda item, but I came because I was asked. There is a lot of history
in this room today. I welcome the new patrol officer being presented today. This community has
gone through a lot, and the pictures on the wall indicate the elected leaders of this community that
have Lead the way. It is a wonderful place. It is a wonderful country. We all should be thankful
we are a part of it. I hope the Commission shares their talents and helps the community go
forward. Thank you for letting me share my thoughts.
Mayor Newill - I have a prepared statement that I would like to read into the record. I think
everyone is aware of the high regard I have for Dr. Sugerman, his abilities, and what he has done
for this Town. But, I must put the interest of the Town of Highland Beach first. Thus, I will not
support Dr. Sugerman's request to modify his existing contract. I would like to re-share with the
Commission the subject of termination conditions gathered from the survey conducted two years
ago when the Town Attorney and I were negotiating the current three-year contract. We received
the following data: Juno Beach -population 3,637 - 6 months salary, plus accrued vacation and
sick leave; Tequesta -population 5,702 - 6 months salary, plus 1 additional month for each year
employed, plus all accrued vacation and sick; Lake Park -population 9,112 - 9 months salary,
plus all accrued vacation and sick; Lantana -population 10,121 - 90 days salary, plus all accrued
vacation and sick. I believe the norm far a city of our size is six months. As far as guaranteed
salary increases for the next three years, I question the legality of such an act as well as subjecting
future Commissions to them. Salary increases should be: 1) A result of an evaluation process of
the then current Commissioners; 2) Impedes an employees commitment when raises are already set
in place. The current contract has ten months remaining and this commission has only six months
remaining. Any modifications to the existing contract rightfully belongs on the table of the next
Commission.
3. PRESENTATIONS
• Introduction of Patrol Officer Tatsuaki Hayashi - Highland Beach Police Department
Police Chief Craig Hartmann
Police Chief Hartmann introduced recently appointed Patrol Officer Tatsuaki Hayashi,
commonly called "T" to the Commission. "T" was sworn in last month and has completed the
field training program. He came to the United States from Japan in 1995 with his family;
attended FSU, but left to attend the police academy. He was a reserve officer in Tequesta, and
brings that experience to Highland Beach. He is interested in becoming a part of our
community.
Patrol Officer Hayashi stated it was a pleasure to serve as an officer in Highland Beach.
Mavor Newill -Welcomed Officer Hayashi on behalf of the Commission and residents of
Highland Beach.
Town Commission Workshop Minutes
August 31, 2010 Page 5 of 9
4. BOARDS AND COMMITTEES
A) Board Correspondence
• None
B) Board Action Report
• None
C) Board Vacancies
• Beaches & Shores Advisory -Two -three-year terms
Interview -Reappointment -Susan Hiles - 4324 S Ocean Blvd.
Town Clerk Brown stated that Ms. Hiles had filled an unexpired term and she is
eligible for a full term.
Mrs. Hiles stated. that she enjoyed her short time on the Board and would like to be
reappointed.
Consensus was to include item on September 7, 2010, Consent Agenda.
• Planning Board -Two -three-year terms
Interview -Appointment -Dyne Mendelson - 3740 S. Ocean BWd.
Ms. Mendelson noted that her name was spelled incorrectly on the agenda. She has
been a resident for over four years; is a real estate attorney working part time; and
would like to contribute to the community.
Commissioner Sorrelli asked if she was available during the day for meetings. Ms.
Mendelson replied yes.
Consensus was to include item on September 7, 2010, Consent Agenda.
D) Monthly Board Meetings
• Special Magistrate -September 2nd -Cancelled
• Planning Board -September 8th -Regular -Cancelled
• Beaches & Shores Advisory -September 14th -Regular - 9:30 AM
• Town Commission Budget Public Hearing -September 16~ - 5:01 PM
• Bd. of Adjustment -September 21st -Public Hearing - 9:30 AM
• Town Commission Budget Public Hearing -September 27th - 5:01 PM
5. PROPOSED ORDINANCES AND RESOLUTIONS
None
6. NEW BUSINESS
A) Approving Change Order #1 to the Contract with Asphalt Consultants, Inc. in the
Amount of $44,683.36 for the SR AlA Water Transmission Replacement Project
Town Manager Su eg rman -The SR AlA Water Transmission Main project continues to move
along very well. As previously reported we believe that the project will be finished on time and
will be finished very close to the original project budget. Since this project was originally
designed and bid, we made a determination that the integrity of the project would be made that
Town Commission Workshop Minutes
August 31, 2010 Page 6 of 9
much stronger if we added one additional 10" crossing of the east water main to the west water
main at the south end of town. The project originally called for just one crossing at the north end
of the project. This decision was made once the existing southernmost water main interconnection
was found to be just a 6" crossing which turned out to be a severely deteriorated cast iron pipe.
Once that pipe was exposed, it became very obvious to everyone associated with the project that
this crossing needed to be replaced. The additional cost for this new 10" PVC crossing is
$44,683.36. We are bringing this additional cost to the Town Commission for an approval to the
project as Change Order #1. If approved, this will increase the original base contract with Asphalt
Consultants, Inc. from $3,182,494.00 to $3,227,177.36. Funds for this south crossing are available
within the DEP loan award, so no additional funds will be needed to pay for the new crossing. The
DEP loan award has more than $3.7 million dollars in it; so increasing the base contract with
Asphalt Consultants, Inc. for $44,683.36 will be well within the parameters of the DEP loan
award. I thought Jack Lee will be in attendance at the Commission meeting to answer any
questions members of the Commission might have on this item, but I do not see him. If this item
meets with the general approval of the Town Commission, we can carry this item over to the
Consent Agenda for the meeting of September 7~'. Last Friday, I received a letter from DEP
authorizing approval of Change Order #1 and the use of the DEP funds.
Mayor Newill -Has this crossing yet to be done? Manager Sugerman -During the construction,
and when the road was opened, we made an on-site decision to make the change due to the
deterioration of the pipe.
Consensus was to include item on September 7, 2010, Consent Agenda.
C) Authorizing the Mayor to Sign an Agreement for Janitorial Services with Sunshine
Cleaning Systems, Inc. by Piggy-Backing on a Contract of the City of Boca Raton
(RF.P. #207-OS)
Town Manager Sugerman - As discussed during the recent budget workshops, one of the two
members of our staff has retired and the other is being reassigned to the Library. Therefore, we
have made arrangements to engage a contract janitorial service to provide the cleaning of Town
Hall, the Police Department and the Building DepartmentlUtility facilities by piggy-backing on a
contract let by the City of Boca Raton. The firm that Boca Raton uses, as well as a number of
other municipalities in Palm Beach County, is Sunshine Cleaning Systems, Inc. This item is
being introduced at the workshop meeting for purposes of discussion. If the Commission is
supportive of having the Mayor sign this agreement, we can place this item on the Consent Agenda
for the meeting of September 7'~.
Mayor Newill - Am I not correct, on the page that refers to the cost it says a total monthly cost of
$4,975.00; then lists an additional cost for the police department of $280.00. This brings the two
together to $5,255.00 monthly; times 12 months equals $63,060.00. On the last page of the packet,
Deidre McCarty's memo compares the salary cost of $62,000.00 to $58.700.00 monthly cost.
Which apparently is not correct. Manager Sugerman -Can you direct me to the page that is
referring to $280.00 for the police department. Mayor Newill - It is on the reverse side of the
sheet that refers to a "Fee Schedule for Additional Services." Manager Sugerman - If you look at
Town Commission Workshop Minutes
August 31 2010 Pa e 7 of 9
the top of that page, it says the City of Boca Raton. We copied verbatim the Boca Raton RFP.
Mayor Newill - So our total monthly cost is $4,975.00 and it covers the police department?
Manager Sugerman - If you look at the back of the 2°d double sided sheet that says "Fee Schedule
for Additional Services, for Highland Beach," the fee for Town Hall and the Police Department is
$2,189.00 monthly, the fee for the Water Plant is $2,786.00 monthly for a total monthly cost of
$4,975.00. Mayor Newill -Going to the next page where they list additional quotes. Are these
included in the $4,975.00? Mane eg r Sugerman -They are not. Mayor Newill - So there is an
additional cost beyond the $4,975.00. Manager Sugerman -The $4,975.00 is for 5-day janitorial
service. If from time to time we want them to come in and shampoo the carpet or we want them to
strip and wax the tile, they have given us a square foot price for these services. What we have
done is locked them into a price in case we want to buy those services. If we want to have these
additional services done, we may be able to get it cheaper by someone else, but we have them
locked into a price. We are not buying these services, just locking in the price.
Mayor Newill -The last problem that I have is the written notice section. Sunshine can give us a
30-day notice, but we cannot? We have to give them a notice that specifies any deficiencies that
might be considered reasonable for termination. To me this is one sided. Attorney Slinev - I want
to comment on the legal aspect. It appears to me that the deficiency issue, basically in that
paragraph it appears that Sunshine can terminate on a 30-days notice. It does not appear that the
Town has the same authority to do that. My problem with the deficiency issue is that I have a case
with another client regarding the same issue. What I would like to see is that the deficiency clause
give the Town and the Cleaning Company the right to terminate using the same provisions.
er Superman - I understand that you are the Town Attorney, but I believe what you asked
for is what the paragraph states. The 5-day written notice provides the contractor a notice
notifying his work is deficient. He then has time to correct that. If he fails to correct it, we can
give him a 30-day termination notice. At the same time if they choose to walk away from us, they
are obligated to give us a 3day notice. This is the usua130-day termination notice. The one thing
that is different, we have to give them a 5-day deficiency notice before we can give them the 30-
day notice. What they are asking is that we notify them of what they are doing wrong. Attornev
Slinev -Maybe, but it is not very clear. I would like to have the 30.day notice spelled out more
clearly. Getting into the deficiency issue creates an additional burden. Manager SugLrman - If
you recommend language, I will bring it back to the contractor.
Attorney Slinev -The next comment I have is found on page 2 and refers to an increase on the
anniversary date. Do not understand to what it refers. Would also like that clarified. The next
item refers to workman's compensation. They want to be reimbursed for any increase. Again, it
looks as though they are passing the entire increase to the Town and not to the contractor. I am not
sure if we should get into that as I think it is open ended.
Town Manager -Mayor, if the Town Attorney will provide me with language that is more
appropriate, I will bring it to the contractor.
7) MISCELLANEOUS -ITEMS LEFT OVER
A) Minutes
July 13, 2010 -Special Meeting
Town Commission Workshop Minutes
August 31, 2010 Page 8 of 9
July 27, 2010 -Workshop Meeting
August 3, 2010 -Regular Meeting
August 3, 2010 -Budget Workshop
Minutes to be included on September 7, 2010, Consent Agenda.
8. REPORTS -TOWN COMMISSION
Commissioner John P iaro -None
Commissioner John Sorrelli -None
Commissioner TrinleX -None
Vice Mayor Zwick - I would like to thank Deputy Finance Director Cale Curtis for responding
to my request.
Mayor Newill -None
9. REPORTS -TOWN ATTORNEY
None.
10. REPORTS - TOWN MANAGER
Contacted Boca. Raton Airport and talked to Kim Singer, secretary to the Boca. Raton Airport
Advisory Board. She advised that Ken Day was on vacation until September 7`~. The final
decision on the continuance of the Airport Advisory Board will be made at a meeting to be
scheduled either the second or third week of September.
11. CONSENT AGENDA
None
12. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
Arlin Varess -4403 Intracoastal Drive
The City of Boca Raton connects with the water system in Highland Beach in the section you
are talking about in agenda item #6A. We need to make that improvement to ensure that we
can accept water from Boca. Raton in case of emergency or failure of our system.
Town Commission Workshop Minutes
August 31, 2010 Pa e~q 9 of 9
13. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned the
Workshop Meeting at 2:20 PM upon a MOTION by Commissioner Sorrelli; seconded by
Commissioner Pa iazo.
1
APPROVED: '' %
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Tim Ne ill, CPA, May
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Trinley, Commissioner
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