Loading...
2010.09.16_TC_Minutes_Special5~ TOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING BUDGET PUBLIC HEARING Thursday, September 16, 2010 5.01 PM Mayor Jim Newill, CPA, called the Budget Public Hearing to order in Commission Chambers at 5:01 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; Chief of Police Craig Hartmann; Deputy Finance Director Cale Curtis; Assistant to the Town Manager Zoie Burgess; and members of the public. S 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: Town Clerk Brown recited the Civility Pledge for the Commission and public. 1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA• Agenda accepted as presented. 2. PUBLIC COMMENTS AND REQUESTS: Joe Asselta -Casuarina I see there is more than one part of the budget that needs discussion tonight. First page of proposed budget is the "Organizational Chart." What is it doing in the budget? Does not speak to numbers, speaks to changes in organization. Although the "Organizational Chart" looks innocuous, the Town Charter sets forth the organization. In the Town Charter there are no provisions for an Assistant to the Town Manager. The authority in the proposed "Organizational Chart" identifies it as: Town Commission, Town Manager, and Assistant to the Manager over all the Department Heads. There is no provision in the Town Charter for the Police Chief or the • Town Clerk to answer to an Assistant to the Manager. They are both appointed and removed by Town Commission Budget Hearing Minutes September 16, 2010 Page 2 of 28 the Town Commission. In Highland Beach, there are a lot of residents who are having financial problems. A lot of employees are not getting raises. Highland Beach employees should not be • getting a 7.2% increase in this climate. 3. PRESENTATION OF BUDGET RESOLUTIONS: • Resolution No. 10-012 R - Adoption of Proposed Final Millage Rate • Resolution No. 10-013 R - Adoption of Proposed 2010/2011 Budget Town Mana eg r Su erman distributed a substitute Resolution No. 10-012 R explaining that due to an error in the calculation, the identified reduction percentage in the General Fund millage rate of 9.14% is actually 8.37%. There have been some slight modifications to the operating budget since the second workshop meeting. These cost saving modifications, due to employee resignations, promotions, and elimination of positions, have resulted in a positive change to the budget, such that the originally proposed Reserve for Contingency amount of $200,000.00 in the General Fund has now been increased to $263,173.00. Please remember that 3.3042 mills does not need to be the final millage rate. The Commission adopted a tentative maximum millage of 3.6062 mills. If the Commission wanted to, the final millage rate could be adjusted to any number between 3.3042 and 3.6062 mills. At the higher of these two numbers, this would add approximately $458,303.00 to the anticipated revenues for the fiscal year. Any additional revenues would not be targeted for spending, but rather would just increase the amount of the General Fund Reserve for Contingency appropriation. Adopting a higher millage rate is something that could be accomplished between now and the final budget hearing scheduled for September 27~`. If the budget is adopted at the 3.3042 lower millage rate, we will have accomplished a 8.37% reduction in the General Fund millage rate compared to the "roll-back" rate. Both resolutions are being introduced at this meeting in order to allow individual members of the Commission to speak to either of the two items. In addition, after the Commission has had their chance to discuss both the millage rate and the proposed budget, the public will be invited and encouraged to speak to both items and will be allowed to do so in a public hearing format. Please keep in mind that after all of the discussion by the Commission and the public, neither resolution is to be voted upon at this meeting. This is just the first of two formal hearings on these two resolutions. The second reading of these two resolutions, along with a final vote on the millage rate and the budget will not be conducted until the meeting of September 27~` at 5:01 pm. Town Clerk Brown read Resolution No. 10-012 R and Resolution No. 10-013 R into the record. Mayor Newill - Is the proposed millage as low as we can go? Mana er Su eg rman -The commission cannot go any higher, but can go lower. Mayor Newill - I agree with Mr. Asselta's statement. I have concerns about some of our residents. I have been informed that some of them are having some financial problems, which is quite understandable with the way prices are going up, insurance is going up, taxes are going up, etc. The little savings that they have, hardly earns any interest. It has already been announced that there is no inflation rate increase in social security next year. The County is saying they are going to raise their taxes 9%, as well as some of the other taxing districts raising their taxes. I feel the burden is getting a little heavy. When I • Town Commission Budget Hearing Minutes September 16 2010 Page 3 of 28 look at a 7.2% salary increase, I feel it is ludicrous. Before I came down tonight, I did a . calculation, it is not scientific, but to use as an example. If an employee started today at a salary of a $1,000.00 a month, and we continued this 7.2% salary increase, in ten years you would double the salary. I think it is a little much. I wish that the Commission would give some further thought to this. I would like to see it capped at 4% this year. I don't care how you break it down: 2% COLA and 3% Merit or all 5% Merit. My suggestion is for the Commission to bring it down to a total of 5% and help our residents. We are helping our employees, but let's also help the residents. Commissioner Sorrelli - I have the same opinion as you and Mr. Asselta, but I am also confused. Here we have a budget to vote on, but I receive a new form that shows four people getting promotions and a raise. I know nothing of this. I do not see any letter that the Manager usually sends us to let us know what is going on. I would like to know, what is going on. Where are these people coming from to get a promotion, with a raise, and the Commission does not know what is going on. Are you aware of this? Mavor Newill - I am not exactly sure what you are talking about. I know if you go in the budget and look at the salaries and wages in total it can be anywhere from 4-9 or 10% increase. But the reason for that is because everybody on October 1St gets the COLA increase and the merit increase is given on their anniversary date. Is that correct? Town Manager Su eg rman -That is correct, but I do not think it is what the Commission is referring to. Comm. Sorrelli -Nothing has ever been said about these people getting a promotion and a raise. Why? Comm. Trinley -Can you be more specific. Comm. Pa l~ iaro - Commissioner Sorrelli is referring to the organizational chart. Mavor Newill - I do not know if the organizational chart is part of the budget. Town Attorney do you have any comments on • that? Town Attorney Sliney -The organizational chart to me is separate from the budget. The budget is numbers, the organization chart is informational. But, they are apples and oranges as far as I am concerned. Mana er Superman - I apologize Commissioner if you have not been getting copies of my written weekly reports. But all the information has been contained in my written weekly reports. Comm. Sorrelli -Can you tell me what week that was? Manager Su eg rman -Yes. I do not have them with me. If you have not been getting copies, I will make sure that you get them. I typically put them in your mail box each Friday morning, I know I put them in your mailbox. If you have not received them, I will do an investigation and find out why. I will give you some examples. I wrote, it was unfortunate, but one of our part-time clerks in the Building Department passed away. I wrote that in a weekly update report. I also wrote that one of our part-time clerks in the Town Clerk's Department applied for that job. I announced that and congratulated her in one of my weekly update reports. The woman who unfortunately passed away was paid at a much higher rate at the top of the pay scale. The woman who replaced her started at a lower salary, but it was still a promotion for her. We ended up saving money in that case. That information was in my weekly update report. Just as the fact that one of our people in the Public Works Department decided that he was going to retire early. He had a retirement date picked out mid November, but decided to retire early. That was in my weekly update report. Comm. Sorrelli -Who was that? Mana eg r Su eg rman - I do not want to go into names. I am giving you generic titles. This employee was initially going to retire November 15`", six weeks into the fiscal year. We had that six weeks salary covered in the budget. When he retired early, we did not need his six weeks of salary in the new budget. So that came out after he announced his retirement. That is what goes into this additional savings in . Contingency. Every single one of these personnel moves has been written in my weekly report Town Commission Budget Hearing Minutes September 16, 2010 Page 4 of 28 with names and dates. I haven't necessarily shared dollar amounts, but every single one has been in my weekly report. If you are not getting copies, I will look into it to find out why you are not getting copies. But every single one of these personnel changes have been in my written weekly • report. Comm. Sorrelli -Does all the Commission have a copy of the organizational chart? On this chart you made Zoie -Assistant Manager. Mana eg r Su eg rman - No, I did not make her Assistant Manager. Zoie Burgess is the Assistant to the Manager. Comm. Sorrelli -You made her Assistant to the Manager? Mana er Su eg rman - No that has always been her title. Comm. Sorrelli -Why wasn't it posted before? Mavor Newill -The first budget draft that came out shows Zoie down with the other employees. I have to agree, and I have a lot of years of reading organizational charts, and after reading this one, I do not agree with it. Manager Su eg rman - There has been no promotion; there has been no money; no title change. The prior budget's organizational chart shows a line with linear boxes. From my office it would go to the Town Clerk's Office, Finance Department, and below that Zoie Burgess with her title all by her lonesome. It was set up linearly, and that is not the way it is operationally. Comm. Trinley - No, I am sorry Sir. The way it is set up here, she is above all of the other Department Heads. Mana eg r Su erman -You asked about the prior budget document, I was giving linear. There has been no promotion, no change in title, and no additional change in money. If the Commissioners are bothered by her name being in the box of the Town Manager's office, where she does work, I can move that. Mayor Newill - I think that is what the Commission is referring to. Normally in reading an organizational chart, you follow all the direct lines, which means a direct report, and that is what this is inferring. Maybe, you did not mean it to be, but that is what this is saying. I have read a heck of a lot of organizational charts in the last fifty years, and that is what this is saying, and this is what the Commission is having a problem with. Attorney Sliney -The issue is the lines of authority. That is what the Commission is saying. You need to change it to reflect the actual lines of authority. Mana erg_Su_ eg rman - I think we can do that by • putting a block out to the right or left. Comm. Pa lg iaro - I noted these changes when I saw it. It popped out when you compare the July 17~` chart with the September one. It is my understanding, along with what Mr. Asselta said about the Charter and the Town Clerk. The Town Clerk's responsibility does not change as a result of this chart. In your absence, she is the administrative head of the Town. Mana eg r Su eg rman -The organizational chart does not over rule the Charter, nor was it the intent. If I made an error in a box and line, I apologize that was not the intent at all. Mavor Newill - I think it can be easily corrected, by pulling it out and putting it below or on the side. Whatever way you want to, but that position should be doing the same reporting relationship as the other Departments. Mana eg r Su eg rman - I don't have the July 17th organizational chart with me, but as I recall the Administrative Department was linear from the Clerk's Office, to Finance down to Zoie. Straight up and down. That is not the way the organization functions. The organization functions as it is depicted here, but if it is misleading, I will move that box out. The Town Clerk's Office does not supervise the Finance Office. What we tried to do was separate the Administrative Department functions. Zoie's name and title were just put in the Town Manager's Office like we function. It was not designated to promote or change lines of authority. It was to try to create a chart that was actually functional. Mayor Newill - I think what the Commission is trying to get straight in their minds is that policy is set by the Commission. If there is to be a change in the way this government is run, it will be up to the Commission to set that policy. Comm. Trinley - Can I still refer to the organizational chart? Why is there no Administrative Assistant in the Town Clerk's Office but there is one in the Finance Office? Manager Sugerman -The Administrative Assistants position in the Town Town Commission Budget Hearing Minutes September 16 2010 Page 5 of 28 Clerk's Office is the one that has been eliminated. Comm. Trinley -Why? Manager Su eg_rman - It has been moved over to the Finance Department. Comm. Trinley -Why? Manager Su eg rman -That is what I was discussing with the Commission during the budget workshop. The Administrative Assistant position will be filled in support of the Finance Department and not in the Town Clerk's Department. Comm. Trinley -Why? Mana er Su eg_rman - I believe that we do not need that position in the Town Clerk's Office. Comm. Trinley - We have always had it. It is a historical position. Mana er Su eg rman - I understand that there is a concept of we always done it that way. Comm. Trinley - If it ain't broke, don't fix it. Mayor Newill - I think maybe the idea of the presentation of service that the Town is providing to its residents; that position has always been there to address the individual that comes through that door. The individual may want to see you, may want to see the Town Clerk, they might want to see me, whatever. I think that the dollars spent on both the Town Clerk and the Deputy Clerk should not be used and wasted where they have to get up and address the public when they come in, unless the public wants to see them or talk about something. I think that the Administrative Assistant in that Department is, in my mind, extremely important. Because, I think in the long run, we save dollars because our Town Clerk and Deputy Town Clerk can do things that they should be working on, rather than directing the public to whom or where ever they might need to go. Comm. Trinley - To the Finance Department for example. Mana e~german - If I may, the way we function is depicted in your organizational chart. You may remember, 2 years ago, I created the Administrative Department, and the Commission supported that. We took the functions of the Town Manager's Office, the Town Clerk's Office, and created an Administrative Department. Mayor Newill - What I was about to say, I think we are here to concentrate on the budget. Let's put the organization chart and the administrative assistant on • our next workshop meeting. Commission Trinley - I have one other question. Tell me about the Office Manager hired in the Building Department. Did you send us a memorandum about that? What is the deal? How long will she be there? Is it a contract? Mana eg r Su eg rman -The Office Manager just happened this week. It will be in tomorrow's report, so you will be getting the details in tomorrow's written report. I received relatively short notice from the incumbent Office Manager who left yesterday. Her last day of work was yesterday. What I have done is written a 60-day contract with a former employee to help bridge the gap until we can hire a full time Office Manager. Comm. Trinley - Do you plan to advertise for the full time Office Manager that has Building Department experience? Mana eg r Su eg rman -That advertisement was posted today. What I did is wait until the last day after the incumbent Office Manager left and did the posting today. Comm. Trinley - Thank you. Mayor Newill -Was the posting internal or external? Mana eg r Su erman - It was external. We posted it through the Florida League of Cities, the Municipal Clerk's Association, Workforce Alliance and on our website. So we cast a fairly large net for candidates. Town Attorney Sliney -The purpose of your Budget Hearing is related to budget. This organizational chart ought to go on a workshop meeting, separate from the budget. Comm. Sorrelli -How can we get the budget squared away if we do not know what is going on? Attorney Sliney -You're talking dollars in budget. Positions in the organizational chart, in my mind, is separate from the budget. Comm. Sorrelli -There is more than one position that we are talking about and it will have an affect on the budget. Manor Newill - I think we will have to let the Commission have its way here and exhaust all the questions on the organizational chart. Town Commission Budget Hearing Minutes September 16, 2010 Page 6 of 28 Comm. Sorrelli - All I want to know is why? Mana e~ eg rman -Let me finish the answer to that one question and I will tell you about when we created the Administrative Department which includes the Town Manager's Office, the Town Clerk's Office and the Finance Office with the Post Office being asub-set to the Finance Department. We try to hold weekly meetings of the Administrative Department Staff. We do it on Friday mornings. One of the things we have been talking about for a long time is quite often, when someone comes in the front door, the first place they go is the open window by the Finance Office, because the Administrative Assistant in the Town Clerk's Office tends to be behind a panel. So the thought was, the public does not come in very often, but when they come in that front door almost automatically walks to the Finance Office, no matter what their question is. A question about the Building Department; how do I get a permit; how do I register to vote. No matter what their question may be, that is the way they tend to come. Comm. Trinlev -Excuse me Sir. I was in that front office for eighteen years and they come to that front desk first. The Clerk's office is the first line of interest, help and consideration when they come through that front door. Eighteen years experience tells me that. Manager Su erman - I am not one to argue, I am just sharing with the Commission my experience. So the concept was to put the Administrative Assistant at the window by the Finance Department. Manor Newill -Well in the 5 1/2 years that I have been with this Government, I believe in all that 5 '/z years there has been an Administrative Assistant there. I have the tendency to agree with my fellow Commissioners on this particular subject. It gets very difficult as we are here to set policy, not to run the government. So I think you should note that on paper you have every right under your direction in your contract to do these things. But the Commission has every right to tell you that we do not like what you are doing. And I think this is an example of that. I was not aware of this, but I see the two positions in the Finance Department, and I think very highly of both individuals, but this says the bid on this is internal candidates only. We are not going out to bid on this? Mana eg r Su erman -That is correct. Mayor Newill - I do not know what the rest of the . Commission thinks, but I think we have to remove our own individual appraisal and always look for what is the best situation for the Town of Highland Beach, and to get the most qualified people as possible. True, there might be some differences in salary. But I have always in practice, always looked to the outside at the same time I was considering an individual on the inside just to be sure the corporation was getting the most for their investment. I guess I do not know how the rest of the Commission feels. Comm. Sorrelli - I have to agree with you 100%. It is not the individual, it is the policy. For some reason, it seems to be disappearing. A couple of weeks after something happens the Manager says he wrote us. There is no communication. I am very upset seeing it come out now. If I did not pick it up, this would have gone through. That is what scares me. We do not want this to happen. Mayor Newill - If you can, just to justify in my own mind. You have a vacancy in the position of Office Manager in the Building Department and you are externally advertising it as well as internally. Why would that position be advertised and not the ones in the Finance Department? Mana eg r Su e~ -That there is a very fair question. I appreciate all of these comments. Let me take you back to the second Budget Workshop. It is on the record, and I do not want to sound bureaucratic. When I presented the modifications to the structure of the Finance Department, going to a Finance Director from a Deputy Finance Director, and promoting to the full time Accounting Payroll Officer, one of the questions Commissioner Trinley asked: "I thought we just promote from within. Why aren't you promoting from within?" I do not know if you recall my response, but my response to her statement was: "We do have a policy that encourages promotion from within." Comm. Trinley - Excuse me. I did not say it that way. I said why is he still listed as Deputy. I did not say anything about promoting from within. • Town Commission Budget Hearing Minutes September 16 2010 Page 7 of 28 Mana eg r Su eg rman -That is fine. I will let the record speak for itself, because the record is there. • But we do have a written policy that discusses and encourages promotion from within. And to my belief, we have qualified candidates and I am going to look for promotion from within. As far as the Office Manager's position in the Building Department, I made a determination as your Town Manager, that we did not have any internal candidates that could be promoted from within. It is a pretty technical position and it takes quite a bit of skill and experience in the building and construction field. I think Commissioner Trinley mentioned that. That is why that was posted externally. If there aze any internal candidates that want to apply, they aze welcome to. But again, I made a judgment call that there were not enough internal candidates, so I posted that one externally. As far as the Finance Director's position and the Accounting Payroll Officer, I made another judgment call that there are internal candidates. That is why I made an internal posting only. There were internal candidates qualified. I did discuss this with the Commission at the second Budget Workshop. I apologize if I was not clear at the second Budget Workshop, but I did discuss this. Again, I did not mention any names. Comm. Sorrelli -You are very good in sending us letters, and I appreciate that. But, I have not seen a letter on this. Mana e~ eg_ rman - A letter on what, Sir? Comm. Sorrelli - A letter on the promotion of these four people. Have any of the other Commissioner's see anything? Please speak up. Am I the only one here that did not know? Mayor Newill -Which promotion? Finance Director? Mana eg r Su eg_rman -Why don't you talk about titles? Comm. Sorrelli -Assistant to the Town Manager is she going to get a promotion and a raise. The Finance Director. Manager Sugerman -They have to compete for the positions. Mayor Newill -Town Manager, who of the 37 employees that we have in the Town of Highland Beach, just which one of them internally could bid for Finance Director? Mana eg r Su eg_rman - Mr. Curtis could. Mavor Newill - My point is, we are looking at one candidate. I am always against just looking at one candidate. I think we have a fantastic guy here, and in the end he will • probably be awazded the position, and that is my opinion. But, I am an elected Commissioner who is suppose to be looking out for the Town of Highland Beach and that we spend our dollazs wisely and we look at the whole scope. Plus look at everybody else who is available. Comm. Sorrelli - How do we know what is out there if we don't advertise and give it a chance? If I am wrong, tell me I am wrong. Mayor Newill - I do not know how to get off this subject. Comm. Sorrelli - If this wasn't said and stopped now, it would have gone right through the budget without anyone's knowledge. Why? Comm. Pa lg iazo -Let's stay with the Finance Director. I think I understand what Dr. Sugerman is saying, and I understand what Commissioner Sorrelli is saying. We have this one person, but why are we not looking at other candidates. Mayor, I think you also said the same thing. I think as a Commissioner, I would like to think that we acknowledge people who do fine work in many different ways. I think Cale has demonstrated what he has done for this Town and if it makes the rest of the Commission feel comfortable, that our Town Manager when a position comes up, that it might be fortuitous to put out an ad for that position and interview these applicants. It appeazs that this will make the Commission happy. I know what Cale has done, and has demonstrated that in many ways to us. But, maybe that is something we need to think about. I feel comfortable with the decision made by the Town Manager that an individual is elevated to a higher position internally without going out. Some people do not get comfortable with that, and I acknowledge that. Maybe this is something that needs to be looked at. But I do not want to diminish in anyway the fact that our employees feel that they aze not recognized. Nor when an opportunity comes about they are going to have to compete. That may be the case in some instances, but if the person has high qualifications, that he or she should not be concerned that • when a position becomes available that an outside person may be considered even though we have Town Commission Budget Hearing Minutes September 16, 2010 Page 8 of 28 the best person. We could go on and on. You could always find someone if we look long and hard enough, and they will be better than the person before them. I'm exaggerating, but I think I am making my point. Mayor Newill - I would like to add, all of the seven individuals up here have had to compete for their positions. It wasn't just handed to them. Comm. Sorrelli -Policy, we are not following policy. Mana er Su erman - I beg to differ. The policy is to promote from within. Comm. Sorrelli -Let me finish. If we are going to do it, let's do it right. Why for one and not the other? This is what gets me upset. No one in the Town has been given a shot. I respect these people. I represent the Town of Highland Beach. I am not going to give anything away. These positions should be advertised. I am very unhappy with this. Never received a letter from the Town Manager saying he was not going to advertise outside Town Hall. Mayor Newill - We have been given three drafts of our budget, and three organizational charts. The first organizational chart did not reflect what the last two have reflected -the changes and the promotions. I guess this is probably part of the route of the Commissioners aggravation because we saw a change in mid-stream. We cannot address the Office Manager of the Building Department because that was due to termination. But, I have a little problem accepting the comparison between the Building Department and the Finance Department where we advertise externally for one and not the other. Because, I have to believe in our 37 employees that there are probably several who could qualify for the Office Manager in the Building Department. To me we have two different sets of rules here, but I will ask the Town Attorney to respond to what I am about to say. You have a contract, your contract says you are to make it simple the CEO of this Town. It is up to you to run the departments and theoretically to staff it at your discretion. I think you have come up to a situation where your Town Commission is not supportive of what you are doing. So I see it as you have to work that out in your mind. You have to work it out . whether you want to go and do what you feel is right and heck with the Commission. You have every right to do that. I hate to say this, but your written evaluation has not been eliminated. I want to remind the Commission that we cannot eliminate his written evaluation like the employees, because item #3 in his contract says we are to evaluate him to get his raise. We have to do that before March 7~'. That has not been eliminated. The way I see it, it is up to you. We cannot tell you to change it. Attorney Sliney -The form of government is basically the Commission is the Board of Directors. The Board of Director tells the Town Manager to follow the policies that you set up. It is up to the Town Manager to implement the policies. That is really up to him on a day to day basis. You told him what you would like to do. Then it is his decision whether to implement it or not. On the issue of the evaluation that is a correct statement. The Town Manager's contract requires an evaluation. Mayor Newill - It would be a breach of contract if we did not do it. Comm. Sorrelli - We are not talking about the Town Manager's contract right now -are we? Mayor Newill - No. I was just throwing that out. Comm. Sorrelli -Let's stick to what we are talking about. Mana eg r Su e~ -Mayor, may I respond to what has been said. By the external posting of the Office Manager in the Building Department, it does not preclude any current Town employees from applying. It does not say external only. That is the all inclusive posting. Internal candidates can apply for that position as well. I have heard a number of times that we are not following the policy. But I believe that is exactly what I am doing. The policy right now is to promote from within. It is very clear right at the beginning of the Personnel Policy Handbook. Comm. Sorrelli -Point of order. Let's go back to the Police Department. You crucified these people because they were not qualified. Every policeman had to be re-qualified and have a certain degree. Is this not true? Manager • Town Commission Budget Hearing Minutes September 16 2010 Page 9 of 28 Su eg rman -All police officer candidates have to meet minimum qualifications. Comm. Sorrelli -Why would you not want to promote within? Manager Su eg rman - I think you are confusing two issues. During some collective bargaining procedures. Mayor Newill -Point of order. Everyone will address the chair and be acknowledged before speaking. Mana eg r Su eg rman - My point was going to be, with this budget I did follow the policy and will continue to defend that. I was going to suggest to you, if the Commission wants to change the policy, I think you can do that and I will follow the change in policy. I believe I followed the current policy which is promotion from within. If the Commission wants to modify that and say all vacancies must be allowed for recruitment both internally and externally, that could be a policy. I will follow it, and I have no problem following it. I believe I was following the existing policy, which call for promotion from within. I did make a judgment call on the Office Manager and I posted it to the outside and did not limit it to internal candidates. But that does not preclude any internal candidates from competing for it. So it is still possible under the Office Manager posting that an internal candidate could be promoted and we would do a promotion from within. So again, I do not believe I have violated any policy. Lastly, if you want to change the policy, I am fine with that. If you want to give me a direction that all positions at all times shall be both internal and external posting, I will do that. Do not have a problem. Comm. Sorrelli -Let me ask the Town Manager a question. When do we hear this? Do you let us know before time? Before we get to this stage? When we are going through the budget? These four people are being promoted. Am I wrong? Mana eg r Su eg rman - Commissioner, I do not know which four positions you are talking about. I know the Finance Director and the Payroll Officer. What are the four positions? Comm. Sorrelli -Finance Director, Accounting Payroll Officer, Zoie, Assistant Manager. Mana eg r Sugerman -She has been the Assistant to the Town Manager. She was the Assistant to • the Town Manager. She will remain the Assistant to the Town Manager. Comm. Sorrelli - It was not posted. Manager Sugerman - Of course it was posted. It was posted when I hired her. She was an external candidate. She was hired from the outside. She competed against a number of candidates. Her position is not a promotion. I apologize if the organizational chart has been mislabeled. What is the fourth promotion? Comm. Sorrelli - It reads that way. You usually inform us with what is going on. We did not get a letter this time. I never saw anything like this before. Am I wrong, or is it just me? Atty. Sliney -The discussion as it relates to the organizational chart. Zoie has always been the Assistant to the Town Manager. The issue is where under the organizational chart she should be placed. Her title is the same, it is not a promotion, and the chart will be changed. Mayor Newill -Town Manager I respectfully request that we have a new organizational chart before the September 27~' meeting. Mana eg r Sugerman -Does the Commission want to change the policy on hiring? Mayor Newill -Do not believe we can address that at this meeting. Mana eg r Su eg_rman -You can give me guidance. The actual policy is written. It would have to come before you and could vote on it. Comm. Trinley - I think it is a subject that we would have to discuss as a body. Comm. Sorrelli - I agree with you. Mayor Newill -The Town Manager is looking to see if we want to do that at this meeting now before we go into the Budget Public Hearing, or do you want this to be put on the September 28~' Workshop Agenda? Vice mayor Zwick - I have one question. What does this have to do with the budget? Does it increase the budgetary salaries? Are these changes within the department structure? Is the budget going to remain the same? What I can see is one administrative assistant is moved from • one department to another. I do not know if there was a salary change. There would be if the Town Commission Budget Hearing Minutes September 16, 2010 Page 10 of 28 transfer paid more highly than the first position. That would not be a change in the budget, nor would it have an affect on the budget. She was a replacement for a post that was vacant. The fact that she moved internally was because there was a position opened. Moving the Administrative Assistant that we had for many years in the Town Clerk's Office, I agree with Commissioner Trinley, it was always apart-time extra Administrative Assistant in that office to assist the Town Clerk and Deputy Town Clerk. Now, there is no position shown in the budget. There may be a time when we have to replace an opening for an Administrative Assistant in the Town Clerk's office. That would come from the administrator of that office. If it is her request that there is a need, then it would have to come to the Commission, so we would fund it. I also recall in the Finance Office there has always been a Finance Director, Payroll Officer, and apart- time Administrative Assistant. I don't remember their names, but I go back 20 years and have seen that third clerk in there. As this time it looks like you moved the Administrative Assistant from the Town Clerk's Office to the Finance Office. But the position has always been there. There is no position open in the Town Clerk's Office unless she requests it. I have listened to the discussion and cannot see that the appearance of a promotion to Zoie Burgess is an error. To satisfy the error, you have to move it to an open section. But I don't understand at all when this Commission had any input or decision making in the Police Department other than the Chief of Police. I have never heard about any changes in the Public Works Department. These directors have been there for many years, no changes there. The Library certainly doesn't have any connection with that. I do not see, can't understand, and would like to see where this essentially affects or changes the budget, as we have looked at it and accepted it in all the meetings we have had. Why this appearance of a budget change has become so important of an issue. If we make a simple correction that the Manager must do both an internal and external search when advertising for a position or a promotion. Other than that, this matter becomes a little mute in ' my mind. I don t see the impact it has on our budget. We have gone over it, and the budget really remains the same unless we add another position in the Town Clerk's Office. All we are going to do is fill positions as they become open. Even if we return that position to the Town Clerk's Office, we have an open position in the Finance Office. This is all internal. I understand the concerns, but I think it might be slightly exaggerated. Two simple changes will accomplish what we have discussed. Mana eg r Su eg rman - I just want to reiterate what the Vice Mayor said. She was exactly on target. If you go back in time when Stan Novak was the Finance Director, the Finance Department did have two full-time positions and apart-time Administrative Assistant position. When Mr. Novak took his early retirement, I tried to set up the Department where we could get by with one less part time position. That was part of creating this Administrative Department. We would share and cross train people. I think the experiment went fairly well, and it works well. But, I come to find that we really do need two full-time and one part-time position in the Finance Department. I am suggesting in this budget, and the figures are in this budget, and I went over this in the Workshop, that the Finance Department needs to go back to that configuration of two full-time and one part-time. We had that for years and years. By doing that, putting back the part-time Administrative Assistant in the Finance Department, I want that person, also to not hide behind their desk doing utility billing, but to be the meeter and greeter at Town Hall when someone comes in that front door and they tend to walk straight through to the Finance Office. It happens all the time. This organizational chart really goes back to where we were, but I have eliminated the other administrative position in the Town Clerk's Office. If the Commission wants to add that back in, that would be fine. I am suggesting to you that the configuration will work and I think it will work well. Again, I apologize if I missed the Town Commission Budget Hearing Minutes September 16, 2010 Page 11 of 28 box with Zoie being outside and not in the line to report. You are right. This is the way it was • prior to the construction of the Administrative Department. Mayor Newill - I agree with you that the Finance Department is going back to what it was. But I disagree with covering or ignoring what we were doing. You are ignoring the fact that we hired an outside consulting firm to be part of that Finance Department. You did not put that in your comparison today. Mana eg r Su eg rman - It is not that I ignored it. I went over it very clearly at the Budget Workshop. What we are doing, we are cutting back on the outside consultant. They were under contract with us for $5,500.00 per month. We are going to put them under contract fora $1,000.00 per month. Manor Newill - I understand, but your comparison was not correct because you left that out completely. Comm. Trinley -Excuse me. Why do we need them if we are going to have two full-time and one part-time employees in the Finance Office? Mana eg r Su eg rman -They will be on a retainer fora $1,000.00 a month. They provide CPA services, which we do not have anyone on staff that is a CPA, and it is on a as-needed basis, with a retainer of $1,000.00 per month. Mayor Newill -I have to say this even though I do not want to. Maybe if we advertised for a Finance Director externally we might have a Finance Director with a CPA also. Mana e~ eg_rman -That is why I said I will follow the policy of the Town Commission. If you would like to change the policy, I have no problem with that. Mayor Newill -I have heard much about the Administrative Assistant in the Town Clerk's Office, and we are not doing justice with that because we did not ask the Town Clerk her opinion on it. Town Clerk Brown - Even though I am pretty sure the Manager does not want me to say this, I think we still need that position, as we have many residents that come in looking for one to one help or one to one to discuss a problem they have and just want to sit down and discuss it with someone. If you are in the middle of a financial problem, and do not have the time, you need to drop everything you are doing to give them your undivided attention. We have many residents come in for assistance during the main part of the season. In the summer time, I agree we do not need this position, but we do the other 9 months of the year. Mayor Newill -I think that is what I said at the beginning. Comm. Trinlev - I have heard that you are going to have some type of volunteer process in the Administrative Offices. Mana eg r Su eg rman -There is a discussion at the Administrative Department level, although it has not been introduced yet. It is on tomorrow's agenda to implement the program. Comm. Trinley -Where in the front office? Manager Su eg_ rman -For the Administrative Department. The initial discussion is for the Administrative Department, but the potential could be town-wide. Comm. Trinley -Where would the person be physically located? Mana eg r Su eg rman -They would be physically located behind the front counter. Comm. Sorrelli -Are we going to have a volunteer in the Police Department also? Manager Su eg rman -Yes sir. When the Chief did the reorganization program about 9 months ago, he brought forward a memo that I brought forward to the Commission, and discussed it here in the Commission Chambers, that he was going to use volunteers at the front desk as well. He has eliminated the full-time position at the front desk in the Police Department. What we have found is that there is no need to pay someone $40,000.00 for afull-time at the front desk of the Police Department. Not enough work so he also is developing a volunteer program for sitting at the front desk. That was discussed with the Commission as well. Comm. Sorrelli -That is pretty much a hot seat. Why would you put a volunteer there? Isn't it confidential? Why would you put a volunteer there so they could shout their mouth all over town? I do not understand that at Town Commission Budget Hearing Minutes September 16, 2010 Page 12 of 28 , all. Please explain that to me. Why would you put a volunteer these to hear some stories and spread it all over? Isn't that way out? Mayor Newill -Let the Chief come up and explain it to us. This is the first I have heard of this program. Chief Hartmann -Good evening. Comm. Pa lg iaro - My question is: "Why do you need a volunteer at that desk when most of the work in the Police Department is confidential?" Isn't that dangerous? Chief Hartmann - No, I would not propose anything that would compromise anything that we do -security, safety, confidentiality. Not a concern in my mind. What that position is from my assessment of it, was an over paid Administrative Assistant position with not enough work. What we are looking to do in going to our records management is to be able to put our report right into records management, data entry electronically. We would actually eliminate one of the major responsibilities of that position. When you get right down to it, the crutch of the volunteer would be to be a greeter at the Police Department. Direct them, guide them, bring a Police Officer in to them. That is all they would be involved in. We may fill that position with an officer or a reserve officer. What we did is looked at our budget and see how we can save money. The elimination of that position, in that Department, was a waste of money and resources. My experience with volunteers, and I do not know what your experience is, but they are a tremendous asset to an agency. Municipalities all over are looking to incorporate more volunteers as we talk about budgets and constraints. We talk about it here. We are finding ways to cut positions that are not essential. If you have the right volunteer in your organization, you have hit the jack pot. I came from an organization that worked with over 600 volunteers. They came to work more motivated than your employees. They are not getting paid, but want to be there. In the position that we would utilize them would not be of one with any confidentiality. It would be to make a presence and help someone if they came in. Be able d di i • to e cate t me to help them. Many small agencies use it like that. Some are lucky to find retired police officers, people in the field of criminal justice. They are a huge asset to your agency if you are able to find the right people. I agree with you. But you have to get the right people in those spots and they will all be screened. Comm. Sorrelli -Have you had any experience with volunteers in a Police Department? Chief Hartmann -Where I came from, we worked with over 600 volunteers in the field and in the department. In Administration, they had administrative responsibilities. If you walk into the Delray Beach Police Department right now, you will be greeted by a volunteer who will meet with you and find out what your need is. They will direct you and spend time with you. That is the first person that you come into contact with when you walk into the Police Department. They don't do everything or solve everything, but they are there to meet you and greet you and take you to the next step. Mayor Newill -Maybe I am asleep. But this is the first I have heard about volunteers. I understand your Reserve Officers situation, but I never heard about using volunteers before. Now the Reserve Officers, if I am correct, are paid but not the same rate as an officer. But they are paid. Reply -Yes. Mayor - Volunteers are not paid, and I had not heard that we were going to be using volunteers in the Police Department. Maybe I missed something. Comm. Pa liaro - I assume that there is a training program for volunteers? Is there a training program in Delray for specific jobs? Chief Hartmann -Absolutely. This is a whole process. You bring people in that are going to help your organization and get you to the next level. We talk about it all the time. This is a Town that prides itself on service and service to the community. People are going to be there to take time and spend time and be an asset to anybody that is involved with the Police Department. We made that clear that we eliminated that position to save money in the budget. That is a big step Town Commission Budget Hearing Minutes September 16 2010 Page 13 of 28 to take, because you have a paid position that was sitting there and not giving any value to the . Town. If that person is not doing data entry anymore and they are only answering the phone and greeting people, it might as well be a volunteer. I have worked with volunteers. I do not know what you are used to here, but I have worked with some great volunteers, and that is what I am looking for. We can supplement the front desk with our Police Officers or Reserve Officers. We are going to use our resources and cross train. There is no need to have a person sitting at that desk based on my assessment. Mayor Newill -Did you provide the Commission with any information on this volunteer program that you are initiating? Chief Hartmann - I do not have contact with the Commission unless they have contact with me. My communication is through the Town Manager. Vice Mayor Zwick - I have said this before. We have all heard about the League of Cities. We have all met there before. One of the courses this year was exactly on the offering to advice, especially to small towns upon using volunteer help. How to get a volunteer program started in your community. They had an entire panel of different people speaking out. We go to the League of Cities at the pleasure of our community. We need to take something back with us. This was the only session that was worth while. I believe that I told some of the Commissioner's that I did not take away something of value from this year's conference. This is the one session that I did not think that I could use here. But in my mind I think there is a need and feel we should pursue it. I will take back my statement that I will not go to more of the League of Cities Conference's unless they give us something back to our community. I am glad it came up through the Police Department. Comm. Trinley - I had a discussion with Chief Hartmann about this. I feel you should only use Reserve Officers. This is not a city like Delray Beach. This is a • retirement community. People do not want to be bothered, and those that do like to wag their tongues. You are taking a terrible chance. As far as the part-time volunteer in the front office, I think it is a slap in the face to this distinguished Town of Highland Beach. We should be ashamed because the people here deserve consistency when they walk through that front door. Manor Newill - Chief, I have to add that I am very disappointed. You thought enough to bring the reserve program to the Commission, but you did not bring the volunteer program to the Commission. Chief Hartmann - I hear the term program. I am looking for one position. I need someone to sit at the desk. I brought this to the Town Manager. We are saving an overpaid salary. I came in here trying to save this Town money. In my analysis of that job and position, found that we are not getting what we are paying for. I have had exposure to volunteers. I talked to other agencies. This is not something I pulled out of my head. This works. I visited other departments where it is successful. They have saved their communities money. I hear where they are doing it in other municipalities and eliminating positions. They did not want to get volunteers in. Here we have an opportunity to do that. That volunteer does not have to be a Town resident or come from Seagate. Ideally it would be someone from the outside. These people who volunteer in your community have been in careers all their life in other venues. They will bring great value to your agency if you allow them to do it. That was my goal in doing this. I shared the program with the Town Manager, and he agreed this was a great opportunity and cost savings to the Town. Comm. Sorrelli - I do not think that is the point Chief. You missed what we are saying. We have a small town here. To put a volunteer in that spot, you are opening up a large box. They are not going to be quiet. Mayor, may I suggest that the Chief come back with his program and then we will take it from there? Mayor Newill - I would love to see the program. We had a program presentation for the Reserve Officers. • Town Commission Budget Hearing Minutes September 16, 2010 Page 14 of 28 Chief Hartmann - I was trying to save the Town money. Comm. Pa lg iaro -One position, eight hours a day? Chief Hartmann -It may not be. . Mayor Newill - We will take a ten minute break. (6:30 pm - 6:40 pm) Mavor Newill -Called the meeting back to order at 6:40 PM. We are here for a budget discussion and seemed to have gotten into other areas. I think if you had a good imagination, you could relate it to the budget. But, I think we have spent more than sufficient time at a Budget Hearing on these particular subjects. If the Commission desires, we could have further discussion at the Workshop to go over the organizational chart and anything else that you want to. Let's get on with what we came here to do. Comm. Pa lg iazo - Mr. Mayor, I was going to suggest that. Today we have said enough on the organizational chart. We need to continue to discuss some of these issues that came about to get results. Mayor Newill -Does the Commission agree to this? What subjects would you like the Town Manager to add to the Workshop Agenda? Further discussion on the organizational chart? He will have a new chart for the Budget Hearing on the 27~'. Comm. Sorrelli - Is the Chief going to present something? Chief Hartmann - Is that what you are requesting from me? Describe what we intend to do with that position? Mayor Newill - I think the Commission would like to know as this is a policy change. Since the Commission sets policy, we would like to know exactly what you are doing. It has no affect on the budget. So if you could prepare something to discuss at our Budget Workshop, I will ask the Manager to include it on the agenda. Is this agreeable? Comm. Sorrelli - If we accept those volunteers are they covered with insurance? Mavor Newill -That will be my question too for the Town Attorney. Let's leave that to when the Chief makes his presentation. Comm. Sorrelli - I would • like to know now, Mr. Mayor. Are they covered by insurance? Mavor Newill -Town Manager or Town Attorney? Town Attorney Sliney - I do not know if they would be or not. We would have to talk to the Town's insurance carrier. If they are not, we would have to find out the cost if the Town wished them to have insurance. Comm. Sorrelli - So it is not just a simple fact? There is quite a bit involved. Is that right? Attorne,~y -Correct. Chief Haztmann -You already have volunteers in the Library. It is not different, it is the same thing. Different desk with different responsibilities. That is all. Comm. Sorrelli -They would be working in the Police Department, it is different. Mavor Newill - Chief, I concur with Commission Sorrelli. We do not expect someone to come into the Library agitated. I think it is reasonable at some point in time that an agitated person will come into the Police Department. Chief Hartmann - Of course that is correct. But, they would be working in a secure environment behind a glass. No one would get close to them. Mayor Newill -Include that in your presentation at the September 28~` Workshop. Town Mana eg r Su eg rman - Mayor, I heazd two different dates -the Budget hearing on the 27~' and the Workshop on the 28t". Which do you want? Mavor Newill - I do not think the volunteer program has anything to do with the Budget Hearing. Why take more time in the Budget Hearing to discuss that. The next day is the Workshop. Chief Hartmann -Just so that I am correct. This is not the pleasure of the Commission that the position was taken out of the budget. If a volunteer is not acceptable, this money is not in the budget for an Administrative Assistant in the Police Department, and that is something we might have to add in if this is not acceptable to the Commission. Mayor Newill - As I said, how about making your presentation on the 28~'. I could tell you right now, you aze saying you will have one volunteer. A volunteer • Town Commission Budget Hearing Minutes September 16 2010 Page 15 of 28 is never going to be sick, go on vacation, get jury duty, or have an appointment at the Doctor? Chief Hartmann - I never said one volunteer. There could be multiple volunteers with a combination with Police Officers. Comm. Pa lg iaro - Mr. Mayor, Chief I value your opinion. Do you think it might be helpful for the person in charge in Delray could come here and talk about the volunteer program? Chief Hartmann - No. I prepared the program and designed the policies. This is what you hired me for. This is my recommendation to save the Town money. If this is not acceptable, you will have to put that position in the budget, and this will be a mute point. Comm. Sorrelli -I respect where you are coming from. What is the problem in giving us a presentation on the volunteer program. Chief Hartmann - I certainly can. It is a very simple thing. They would be working out at the front desk. Comm. Sorrelli -What will they be doing in that office that is all I want to know? Chief Hartmann - It is very simple. They will meet and greet you and bring you to the next step. Bring in an officer to take your report and your information. They will do nothing else. Comm. Sorrelli -Please check on the insurance. Mayor Newill -Since the Chief has thrown in the fact that if we do not agree to the volunteers that he will need $40,000.00 for an employee, then I guess we need to have him make his presentation at the Budget Public Hearing rather than the Workshop. Manager Su eg rman -May I comment to that? Actually with some of the things that have happened over the last 30 days, employees retiring early, internal promotions, and resignations. I did not put this in writing, but it was part of my verbal presentation. We have improved the .bottom line of the budget to the tune of $63,173.00. As this is the first of two budget hearings, between now and then we can do a calculation of what it would cost to put a full time Administrative Assistant in the Police Department and an additional part-time Administrative Assistant in the Town Clerk's Office. We could calculate these numbers for you. As a matter of fact, I could give you those figures to • you in a few days. I do not think that I can have it for tomorrow's weekly report as it comes out at 9 AM. But, I can have it in advance of the next Budget Meeting. It may cost more than this new $63,173.00, but I can get you that information. And candidly, you do not have to make that decision because $63,173.00 is savings that will return to Reserve for Contingency. It could be pulled out later. Say you want to create the position in the Police Department say on January 1St There will be money in the budget. We will have it covered either way. Maybe I should do a spread sheet of what it would cost for a full time Administrative Assistant in the Police Department into the budget, along with apart-time Administrative Assistant in the Town Clerk's Office. That is why we hold two budget workshops and two budget hearings. Mayor Newill - What you are saying, is the $63,000.00 additional savings you are bringing to the Commission today, but we are still taking money out of reserves to balance the Budget. Reply -Yes. Mayor Newill -The $63,000.00 is good news, but taking money out of reserves is bad news. Is everybody straight? Manager Su eg rman - We are clear then. It will not be on the 27~' Budget Hearing, but the 28~` Workshop agenda. Mayor Newill -You are saying we can always make the adjustment afterwards. Manager Sugerman - What I am saying is, it seems the Commission wants to have its say on the organizational chart. That does not necessarily have to be part of the budget approval. I think there is enough room in the budget at the second public hearing on September 27~', which ever way we go. We might get slightly below $200,000.00 in Reserve for Contingency. We are $63,173.00 more to the good then we were at the end of the second Budget Workshop. Between the first Budget Hearing tonight and the second Budget Hearing we could run some numbers and see what the impact is. We could do it on a 12 month basis, a 9 month basis or a 6 month basis. Mayor Newill -Chief when you make your presentation, is there a • reason why you cannot use your Reserve Police Officers, instead of volunteers. That would be Town Commission Budget Hearing Minutes September 16, 2010 Page 16 of 28 less than $40,000.00. Chief Hartmann - It comes down to finances. It is the money. Do you want a volunteer to do it, or do we pay for that? I am here to put the money where I think it • needs to be in my Department. That is why I gave you my recommendation. Mayor Newill - Then you need to address it in your presentation. 4. PUBLIC HEARING REGARDING 2010/2011 FISCAL YEAR BUDGET• Mayor Newill - Is there anyone not having fun yet? We have the Resolutions read, and it is time for the Public Hearing. I formally open the Public Hearing on the 2010-2011 Fiscal Year Budget. It is now open and any citizen or resident can address it. Please raise your hand to be recognized. Mr. Asselta. Joe Asselta - Casaurina First of all, to bad we had to follow this with a Budget Hearing, as that was very interesting. It is a session that you probably should have more often before and you might have more people come back. We used to fill up the place when we use to have fist fights. It was interesting. One of the things that I want to start off with and it has to do with something discussed well over an hour that probably could have been cut in half or more. What I am going to do is read to you Section 3.03 from the Town Charter. Section 3.03 is titled `Department of the Town." It starts off with: The Town Manager shall have charge of and shall direct the administration of the Town's Departments. Then you get where it says: Each of the Town Commissions shall have a special area of interest as designated or assigned by the Mayor and be available to the Town Manager in an advisory role when requested by the Town Manager. As I recall, I was probably . the last of those persons when I was assigned to the Police Department. I don't think it has occurred since then. But here what happens, believe it or not, that person instead of saying at every meeting "No Report," their report would be on what area they were assigned. This way, all the Commissioners, the Town Attorney and maybe the Town Manager would find out what is going on. You would not have this discussion for ever and ever on what is happening, because you would have been getting a monthly report. The Fire Department is doing this, the Police Department is doing that, the Finance Department is doing that, and the other Departments are doing this. Or, this is what they did last month. Instead, every month we get the same report - none. Mr. Mayor, I plead with you, utilize that section of the Charter. That is something you have available that is invaluable. Now -budget. Where do we start? Let's go back, please bear with me; I have not been on top of everything. I missed the workshops and will not be here for the next meeting. When I asked to look into this, I thought I would never be looking at this budget forever and ever. But, I did. I have read budgets, was the managing partner for a big law firm, Commanding Officer in the Navy, and a lot of other things. I know how to work with budgets. This is obtrusive. First of all, just a simple number. What was our revenue? What was the revenue from taxes alone? Is it 7 million? Or, is it 10 million? Then I look over to the side. What are we using for expenses? And I see expenses, but I really see revenue. Wait a minute, this thing does not work. So, basically, what I have to say, if we can some how at one of these budget meetings get a simple summary the way they did things in the days we did not have computers making tons of paper. One simple sheet and you really had a profit and loss statement, all on one page. I think I could have learned a lot from something on one page rather than all these pages. What we are looking at - we are borrowing. How does the income come to • Town Commission Budget Hearing Minutes September 16 2010 Page 17 of 28 the Town fall short of what our expenses are? I couldn't get the exact amount to figure it out, • but it appears to be 3 or 4 million dollars. We are operating at a deficit. But the budget doesn't show it, because you are reducing the millage by $200,000.00. You would think we are doing pretty well. But we are not. What is our total debt - 4 million? I do not know what it is now. Mayor Newill - Mr. Asselta if you go ahead and make your questions, the Town Manager will jot them down and we will give him an opportunity to address them. Mr. Asselta -There is a debt somewhere in there, but I do not exactly know where it is? If we have a debt, do we have cash that could pay for it? You use to have 4 or 5 million in reserves. We use to have some commitments that we made when we built the water plant. I remember that there was a commitment, before we spent any money; we had to sell the land. But yet you are using not the income from the plant, we are using the loan that we got. Now I think that at that time they valued the property in Boca over 4 million. Based upon that, we were able to obtain loans at a very low rate. This was back when things were favorable and bankers talked to people. It has not happened since then. So we do have a good rate. There is no question to that. Why are we considering borrowing at this point in time when we still have that property over there? Between the State and the County, do not know what the ultimate obligation is going to be to the Town of Highland Beach. The County has mentioned 9%, and has taken the police out of the parks. How long is that going to last? We can't have overcrowded class rooms anymore. There are all these things that are not going to last very long. Somebody is going to have to pay for these. The County, we cannot control. The only thing we have control over is this little niche of a Town, which goes up or down a quarter of a mill with their taxes. But the fact of the matter is that our property values that we are taxed on are devaluing. Severely devaluing. Do not know how you can lower your millage rate. The income to the Town is based upon the evaluation of the • property, which we are losing every year. Our Town is worth less every year than the year before. And, you are going to be very generous to the employees. The employees are nice. Believe me, most of the people here I know very well. You have a great team of employees. And I do want to see them do well. If they look at their compatriots in the other Towns and County, many of them are not getting any raises. Many of them are being frozen or reduced in salary. We got to think, is this the budget that we want? It looks nice. There is a pool of money. Is that where we want to put it? Look at these funds. Now is the cheapest time in the world to take down the debt that we have from the Library, the Water Plant or the AlA road. We have the cash now to do it. We should be doing it. You are not thinking big. That is what I am saying. We are a little Town, you can do ourselves a favor, but we are not doing it. Other than that, I do not know where to go. I am not going to be here, but I will follow what is happening. And for the next several days, I will answer any questions that you might have or help wherever I can. Other than that, Good Luck. Just do the right thing. Mayor Newill -Town Manager do you want to answer Mr. Asselta's questions. Manager Superman - I can take a stab, unless Cale has our outstanding debt file with him. I believe our outstanding debt is somewhere between 18 and 20 million dollars. I think that is what it is. I do not want to argue with Mr. Asselta, but I have a different perspective on his last comments. I believe over the course of the last three years we have done two things as it relates to debt. We have attempted to pay it down aggressively and have either re-negotiated or secured very low rates. The last rate on our AlA Water Transmission Loan was 2.64% or 2.62%. Granted if you are sitting on cash and you are investing that cash and you are only earning .45%, you see our . monthly reports, you are not earning much money. Yes, the cost of money to us is about .200 Town Commission Budget Hearing Minutes September 16, 2010 Page 18 of 28 basis points - 2%. Borrowing at 2.6% and earning about .45 or better. So our net cost of continuing to sit on cash is 2%. Historically, that is incredibly low. This is the best of times to owe money rather than paying it off. Again, that is a judgment call by the Town Commission. I think we have put you in a position to borrow low and not be saddled with expensive debt. But, that is my opinion. I could be wrong. Mayor Newill - Mr. Manager, most of the time when we have these projects, water line/water plant, isn't the normal procedure we say we are going to sell bonds? Am I correct? I would assume that the cost of the bond issue and the administration that you have in place to do that would exceed the borrowing cost that will retain all these funds. Is that correct? Mana er Su erman - If we were to issue bonds that would be correct. But, since I have been your Town Manager, we have not issued any bonds. Manor Newill - I am just bringing this up as a point. Mana eg r Su eg rman - We have either gone to a bank and taken commercial loans at very favorable rates, or we have gone to some other governmental agency. Manor Newill - I think at the time we did this, it had been the reverse. If the commercial rates were much higher than we would maybe have gone to a Bond Issue. Mana eg r Su eg rman -That is exactly right. I do not want to sound silly, but it is like playing a game. You put one commercial bank and a second commercial bank against municipal bond holders. Wherever you get the better deal, you go with the better deal. The commercial banks do not have a lot of fees. They have some fees, but not a lot of fees. When you issue bonds, there is a tremendous amount of fees. I am not trying to bad mouth attorneys, but there is a Bond Attorney and he gets his cut. Then there is a Financial Advisor and he gets his cut. That just takes the total basis points on a bond issue up. We have avoided bond issues because the commercial banks or the governmental agencies that have loaned us money have always been much better than issuing bonds, since I have been your Town Manager. Mayor Newill - Is there any other individual in the audience that would like to participate in this • Public Hearing? Please give your name and address. Anita Peazlman - 2352 S. Ocean Blvd. We aze not all retired in Highland Beach, there are still working families. We have slightly different issues, but I personally want to thank this Commission for having an evening meeting. Everything I have heard, the comments from Mr. Sorrelli and everyone has been informative as a citizen and tax payer. I am thrilled to death that you aze keeping a close eye on what has come before you. I have not seen the budget, but I pay my tax bill. Between the County and State taxes, it has gone up 10% which is a difficult thing. The most recent tax bill that I have shows the value of my property has gone down about 20% this year. It is important that I feel the Commission and the Town understands that when the higher end properties aze hit 20%, this is going to trickle down to the condos very soon. The millage rate and your budgets will have to adjust in a very short period of time. In possibly a yeaz or eighteen months there will be major damage to the value of our properties. I would say to this Town Commission, Mr. Sugerman, Town Attorney and everyone in this administration to be very prudent in considering this budget. We made use of much less in the olden days and Highland Beach had just as much status as today. I understand that we have had some big projects, but extreme prudence should be exercised in this budget. I do not know anyone in the last two yeazs who have received a pay raise. Most of the property owners that own their own businesses have taken a big hit. We have had to lay off friends and long standing employees. Most employees are very happy to have work. Any consideration of jobs saved or money saved, every percent is a benefit. A • Town Commission Budget Hearing Minutes September 16 2010 Page 19 of 28 $40,000.00 salary is $60,000.00 by the time you get through. We are all in this together, very • much together. Again, I as a citizen really urge prudence and for the Commission to spring vigilance. The millage rate with both the County and the School District are going to rise. These are just my comments. Want to thank the Commission. Everyone is trying. Thank you. Mayor Newill -Thank you for staying the course and sharing your comments. Is there anyone else in the audience wish to address the Commission on the budget? Seeing no hands, I will formally close the Public Hearing. 5. COMMISSION QUESTIONS AND DISCUSSION: Mayor Newill -Any Commissioner wish to make a comment or have a discussion on this budget? Comm. Trinley - I have a question regarding the Town Manager's budget. The amended budget is listed as $193,215.00 and the recommended budget is $207,335.00. That is a difference of $14,120.00. Can you tell me why the difference? Mara eg r Su eg rman - I am sorry Commissioner I am on that page, can you show me which line item you are speaking about? Comm. Trinley -Page 4 -first line. Manager Sugerman - My page under requested shows $207,335.00, and column 7 shows the same amount. Comm. Trinley -That is a difference of $14,120.00 from the $193,215.00. Mana eg r Su eg rman -That would be salaries. Comm. Trinley -Just you? You and Zoie? Mana eg r Superman -Zoie is also in the Manager's office. Those are the two full time positions in the Manager's office. Mayor Newill -What the Town Manager is doing is putting the max in the salary account. Comm. Trinley -Then let us look at the Town • Clerk's budget on page 5. With the amended budget and three employees the total was $132,810.00. Now with only two employees it is $133,030.00. Why is this? Manager Su eg rman - If you look at column 6 which is the requested. The requested included both full time positions and the part-time position. It went down from $145,830.00 to $133,030.00. Those were the salary adjustments of those people in that Department. I backed out the part-time Administrative Assistant that was a little over $11,000. That is the difference between column 6 and 7. Comm. Trinley -Thank you. Comm. Sorrelli -Mayor, as a CPA, where are you with this budget? Are you pleased? Are you happy with it? Mayor Newill - I think I said it in the beginning, I am not happy with the salary increase of 7.2% for everyone. As a matter of fact I even suggested that the Commission consider maxing it at 5%. As far as the rest of the budget is concerned, you have to take a budget for what it really is. A budget is a projection. You start out with projected income and then you tie in your projected expenditures to balance it. It has to balance. You could eliminate some of these expenses that are in it. But looking at the line items from the first budget that we had, I went over the budget and I had a few questions which I got with the Town Manager and presented to him, like I have done since I have been on the Commission. He came back to me with satisfactory answers. Could you cut more? I am sure you could. There is no question about that. But, again, the expense portion that you are seeing here is the projected worse case scenario. Mana er Sugerman -Let me tell you what it is. It is fully funded. The assumption is that it is 100% funded. We know people come and go, but it is fully funded. Mayor Newill - It • is fully funded, but it does not mean we are really going to spend all that money. Remember in Town Commission Budget Hearing Minutes September 16.2010 Page 20 of 28 prior years we had a fairly large contingency that went over every yeaz into our Reserves. That is why we have 5 % to 6 million in Reserves now. Now, bang we hit the wall, so to speak. To • balance this budget, we had to bring money over from Reserves. Mana er Su eg rman -That is on page 2. It is important that you look at that number. It is in the bottom right hand column - 2 up from the bottom number. If you look to the left of that line, it is called the "Appropriation from Reserve." Let me go across all three lines. Two yeass ago, we had to appropriate from Reserves to balance the Budget - $482,000.00 in round numbers. This yeaz to balance the General Fund Budget we had to appropriate $670,000.00. And next year to balance the General Fund Budget we have to appropriate a little over a million dollazs from the Reserves. But I may put your mind at ease. Exactly what the Mayor is saying, this is just a budget. It does not mean we are going to spend it. And as it turns out, if you look at this yeaz's budget column, we budgeted $697,861.00 to balance the General Fund Budget. You are going to take zero dollazs from the Reserves this yeaz. If you look at the monthly reports, you will see yeaz-to-date we have taken zero dollazs from the Appropriation for Reserves. I believe we will finish the year without taking any of that $697,861.00. But to present the Commission with a fully funded General Fund Budget, I have to show a balance budget. It is the law. That is why there is an Appropriation from Reserves of $1,052,500.00. Mayor Newill - We are very fortunate that we do not have a Town Manager or Department heads in August or September looking at the budget and saying wait a minute, I have $30,000.00. so I have to run out and spend it quick. We do not do that. So, many of these numbers will not materialize to the numbers that aze listed here. I do not know if I answered your question. Comm. Sorrelli -You did not answer my question. Mavor Newill -You asked me if I was satisfied. I said yes. I said it before. When I met with the Town Manager and went over the budget originally and he answered the questions that I was not satisfied with, he was able to address them. One of the problems to my profession when I am dealing with people and I • think it is universal, they do not comprehend what a budget is. They are used to income statements where the revenues come in and then list the expenses. A budget is not that. A budget has to be fully funded. If you could take any of these line items and reduce it, all it is going to do is move it to the contingency line. We are still going to have the same totals that we have right now. Take $100,000.00 out of any line item or Department and all you are going to do is move it to the contingency. You still have to have a balanced budget. It doesn't mean in reality that we are going to spend every one of these dollars. Mana eg r Su eg rman -May I interrupt. There is one other thing you can do to reduce the budget and that would be to reduce the millage rate. Very eazly on in this meeting, the Mayor suggested that you may want to give some consideration to going lower. He asked me if we could go even lower than was proposed. In your packet, the yellow hi-lighted column is what the budget is built on, a .OS decrease in rate yeaz over year. If you go to Column E, we provided this sheet at both Workshops, in Column E that is a .10 decrease. If we reduced taxes down an additional .05, for a total of .10, you would reduce income by another $85,000.00 in round figures. You would have less revenue coming in, so you would have to reduce your expenses to balance the budget. So we could spend less money and collect less money if you set a lower millage rate. We did not take the chart out lower than a .10 mill decrease. We are one of the few jurisdictions that are decreasing our millage rate at all. Some are holding flat, in today's newspapers it said the County was going up 9%. We are going down 8.37%. We could go down further if you want. Mavor Newill - If we go down further, we will pass on the savings. Mana e~ elan -That is exactly right. Ma•~r Newill -And we are doing something for them. • Town Commission Budget Hearing Minutes September 16, 2010 Pale 21 of 28 Comm. Sorrelli - I am quite upset, very upset. I am upset about the Town Manager. I • understand that the Town Manager is out looking for a job. And I understand that he has been turned down by two towns that he applied for. At the previous administration he did the same thing. How can we live with a Manager that is going to do this every once in a while, and put the Town against the wall. That is what he has been doing and getting away with it. Now that he has not received an offer from these other two towns, where are we with this man? Is he going to stay with us? How can we run a Town when we do not know what the Manager is going to do? I would like him to answer that please. Mayor Newill -Town Manager do you want to address it? Manager Su eg rman - I would like to address it. At one of the earlier meetings, I proposed to the Commission a contract that would keep me here longer. But then I removed it from the agenda because I heard individually from some of the Commissioners that they did not want to deal with it. A direct answer to your questions Sir, at the end of this contract year, I am a free agent. Comm. Sorrelli -Say again. Manager Su e~ - At the end of this contract year I am a free agent. I could take my talents wherever I chose as a free agent and sell my talents to another employer. But, I did not want to do that. Comm. Sorrelli - If you feel that way. Mana eg r Su erman - I thought you were going to allow me to finish. Thank you. Comm. Sorrelli -Why don't you resign? Mana eg r Su eg rman - I am not looking to resign. Comm. Sorrelli -Why are you hanging in here? You do not have your heart in this Town. What have we done to hurt you? How do we know you are going to go out next week and get another job? Mana eg r Sugerman -You don't. Comm. Sorrelli - So where are we? Where does this Town stand? Mana eg r Su eg_rman -That is why I attempted to offer to the Town a contract to eliminate my free agency and say I will stay here. Comm. Sorrelli - Mr. Mayor, as a Commissioner of this Town for nine years, I suggest that the Town Manager resign, and if he doesn't resign that this • Commission dismiss him. We do not have this man's heart in this Town. He is not worth it. I wish some of the Commissioners would see what is going on here. Mayor Newill -Let me try to address part of what you just said. Let me provide you information. I am not going to argue the point, but, if you terminated the Town Manager it would cost this Town $188,427.47. Now we are looking at a budget where we had to pull money from Reserves to balance it. I have difficulty in spending that kind of money needlessly. I think the Town Manager came to us with a proposal. I was definitely against the proposal. I think the Town Attorney and I when we did his contract two years ago gave him a sweetheart deal. Whether you are talking about the Town of Highland Beach or some corporation, any employee can quit and go some place at any time. There is really nothing you can do about it. But if the Town Manager comes to a decision in his mind that he wants to quit and leave, it is not going to cost the Town a dime. If you terminate the Town Manager it will cost you $188,427.47. I hope I have the same numbers the second time. But we are trying to balance a budget here. We are bringing money from Reserves. I just can't support it at this point in time. If the Town Manager becomes so disenchanted with the Town of Highland Beach and this Commission, who knows? But at this point in time, I couldn't support it. Comm. Sorrelli -Where is your question, Mr. Mayor? If you were here at the last meeting, and you were at the last meeting, you heard two of our Mayor's, you heard two of our Vice Mayor's, you heard a number of citizens state how far do you want to go to keep him. Is it worth the aggravation not knowing where he is going to be next week? What happens if he finds a job . tomorrow and he leaves tomorrow? We have no protection. Don't you think we need to protect Town Commission Budget Hearing Minutes September 16, 2010 Page 22 of 28 ourselves? Mayor Newill -Anyone of our 38 other employees can quit at any time. It is the same thing. Comm. Sorrelli - It is a big difference. You know it just as well as I do. This man • feels he is Mayor of the Town. He has no respect for you or the Commissioners. Go back and listen to the citizens. If I am wrong, I am wrong. But I am not wrong. You heard it at the last meeting, this place was packed. That doesn't tell you anything? Mayor Newill -Well, it tells me what those people heard, they did not agree with. Now that did not materialize. Comm. Sorrelli - What they heard they did not agree with. Mayor Newill - No. I think that they heard the Town Manager give us an ultimatum and they did not agree with it. I didn't agree with it either. But, you know there is five individuals sitting up here that have the responsibility for making a decision. And in all due respect to the former Mayors and Vice Mayors, and the previous whatever's, they are not in the position that they answer to the residents of this Town. At one time they did. Now, it is the five of us sitting up here. So we have to evaluate this in our mind. I am not saying that you can't get a 3-2 vote to terminate him. I do not know. I have no idea. I can listen to what the residents, the Vice Mayors, and the Mayors come to tell us and put it in my thinking hat. But it still rests on my shoulders, as well as the rest of your shoulders. Those kinds of decisions we have to live with. We have to answer for. These other people do not have to. So each of us have to make our own individual decision. At some point in time, if it is 3-2 to terminate him, that is what will happen. But, right now I have heard from one Commissioner. Commissioner Pagliaro. Comm. Pa liaro -John you know that I respect you, and you are entitled to your opinion. I would not like this Commission to adjourn without hearing other view points. Fellow Commissioners, I would like to have your opinions. I am just amazed in terms of how you see • our Town Manager. I see him very much differently than you do. I will be more specific. I am not just going to give a whole litany. I do not know if you really understood when Dr. Sugerman offered a 3-year contract with diminishing percentages. He was saying to us, I am making a commitment to this Town. You may not like that, but I thought he was making a statement about how he feels about this Town and how he wants to stay here. And I would like to remind you, and I have used this term before, that last year or a year and a half ago he saved this Town a million dollars. I just am amazed, that the Town Manager, whenever I had a question and concerns, his door was always open. I felt guilty about me coming to his door, knocking, and he has never rejected me. He was involved in his work, but he was always available to me. Whatever question I had about a multitude of items, he was available. I have a high regard for him. I respect him. I cannot speak for how you feel and I cannot change that. I am 180 degrees the other way. I think Dr. Sugerman has been an asset to this Town. I value what he has done for us, and I will not say anymore. I am just totally amazed. Mayor Newill - I would like to address one more thing that you said Mr. Pagliaro. One thing that you said he was obligating himself to 4, 3, and 2% increases. I personally do not feel it would be right for this Commission to put in a contract what he is going to get for the next three years, when the Commission has a big possibility of changing in the next six months. Two Commissioners sitting here right now may be gone. So what you are doing is you are obligating the next Commission to give that person a pay increase. The next year, there would be two other Commissioners that may be replaced. You are now obligating that Commission to pay increase. I like the democracy that we have exercised in this Town for a number of years where after we • Town Commission Budget Hearing Minutes September 16 2010 Paae 23 of 28 do his written evaluation, each Commissioner says I want to give him a 5, 4, or nothing percent. We add up all these numbers, and average it out. That is what he gets. I strongly believe in that versus writing a contract that is obligating future Commissions for increases. It is not fair to them. Any other Commissioner wishes to speak? Comm. Trinley - When I read the Town Manager's memorandum about the contract, all I could think about was we were being held hostage. I will do this, if you do that. I do not think that is anyway to do business. Vice Mayor Zwick - I have been listening to the comments very, very closely. I think I was the only one here when Dr. Sugerman was offered the job as the Town Manager. I was sitting on the dais at that time. I was pleased tremendously to have him chosen from the hundreds of applications that we received. I see him in very much the light as our new member of the Commission - Mr. Pagliaro who has only worked with him briefly. I think he has caught the same impression that I have. I also have to agree very heartily with the Mayor that the one thing that bothered me was the commitment of future generations to something we put in writing. That is why I think Commissioners were wise enough years ago when they made certain decisions and promises. It was a verbal thing. They would never put it in writing. I think this is the wrong time to get into employer/employee discussions. He withdrew his contract from the table. He left it open. He is finishing his contract, and at the proper time we can sit and discuss a new contract with the Manager. When that time comes, or what the result of it will bring, I do not know. But it is following the true democratic process that we have lived under, established, and has served a very good purpose. At the evaluations, when we have reached the point of considering his raise, it is very deep and very difficult. If the general public could see how invasive it is to his everyday performance from the time he arrives, to the time he leaves, and to the time when he is not here. So, I do not think the budget is that greatly affected when we come down to discussing a new contract. It can be worked out at that time and it would be proper. He understands that. I think he got the feedback from the Commissioners regarding the notice he gave us in the memo even before we sat down to discuss it by withdrawing the memo. I think he did the wise and prudent thing. Therefore, I cannot agree, and heartily disagree with the situation or proposition to even consider asking the Manager to resign at this time. I do not think he has shown any disservice to the Town of Highland Beach. I cannot punish him from looking elsewhere. I think most people do it some time or other in their professional career look elsewhere in the market. I did not take it as a threat. Maybe I am naive and am misreading it. I did not take it as a threat saying if you do not do this, I am leaving. I think the way he couched his language was: "You understand that I am considering this, but I would prefer." I think that was his language, not quite sure. He showed his preferences, his desire to stay here, to be with us, and complete his service as well as he has in the past, and I think even better. So, as I say, I could no second the motion or idea, nor would I support it. Thank you. Mayor Newill -Any other comments from the Commission? 6. REPORTS -TOWN COMMISSION: A) Commissioner John Pagliaro - No Report. • Town Commission Budget Hearing Minutes , September 16.2010 Page 24 of 28 B) Commissioner John Sorrelli - No Report. C) Commissioner Doris M. Trinley -I would like to refer to the Florida League of Cities letter dated 9/3/2010, in which they state as a result of some good financial goings on, they have placed the League in a financial position where they will be offering member a 25% rebate of dues paid for this fiscal year ending September 30, 2010. Rebate checks will be mailed to all members in good standing on January 7, 2011. Thank you Florida League of Cities. D) Vice Mayor Miriam S. Zwick - No Report. E) Mayor Jim Newill, CPA -Two things. One of the things that I would like to report, and I do not think the Commission knows, but I have been appointed to the Florida League of Cities Investment and Tax Committee. They requested that all the communities participate. So I notified them that I would be interested. The other thing that I have to say, I hope the Commission goes home and has good nights sleep. I hope in your good nights sleep that you give some consideration to what I suggested about capping raises at 5%, giving the difference back to the residents. 7. REPORTS -TOWN ATTORNEY: No Report. 8. REPORTS -TOWN MANAGER: • What I would like to do is recap some of the commitments made tonight to bring information back to the Commission. See if I missed anything. Staff will be bringing back to the Commission at the 9/28 Commission Workshop agenda an outline of the proposed Police Department Volunteer Program. I will also put on the Commission Workshop agenda of 9/28, the Town's Personnel Policy, which is the policy that says: The Town's Policy to Promote from Within. If the Commission would like to modify that, we can have a discussion about that as well. I will move the Assistant to the Town Manager's position to a side box, out of the Office of the Town Manager in the organizational chart. I will work with the Finance Office to give you, as soon as I can, I am not sure it will be tomorrow, but it will be the first part of next week, a spreadsheet on the cost to the budget, to add back in the budget, a full time Administrative Assistant in the Police Department and apart-time Administrative Assistant in the Town Clerk's Department. I did not put it down, but just triggered in my head, if it is the desire of the Commission, I will put all hiring on hold until you deal with the overall Personnel Policy from the Town to promote from within. Mayor Newill - I requested, what would be the cost if we used our Reserve Police in that position in the Police Department rather than volunteers? Mana eg r Sugerman - I can answer that already. There would be no additional cost. Moor Newill -You would just be allocating. Mana eg r Sugerman -That is right. You would be allocating the resources. You could call a Reserve Officer or a Patrol Officer in. The Chief and I have discussed when there may be times a Patrol officer would be at that desk. There would be no additional cost. Mayor Newill - I did not think of that. Good thought. To me that sounds like a winning situation. I would also like on the agenda for the Workshop my pet question Town Commission Budget Hearing Minutes September 16 2010 Page 25 of 28 because I think it is policy. The question of employee evaluations. I would like to go down that route again. Mana eg r Su eg rman - Ok, I can put that on. Mayor Newill - Do any of the • Commissioners want anything they want to add? Comm. Pa lg iaro -Mayor, may I respond to that. I sense the feeling with regard to this business about employee performance. It is very possible, I think Zoie mentioned it, even though I have not spoken to Dale about this one-year moratorium. Not advertising, I can understand that and I respect that. Maybe we can have a committee of some staff members and a Commissioner, to look at and come up with some sort of compromise to have an evaluation of some sort. But, I think I would be helpful to have the input of staff, a Commissioner and whomever. I want to give you something to think about. Mayor Newill -You can request anything that you want, but I disagree with you because I believe it is a Policy. The policy is the decision of the Commission. The fact of a committee. Comm. Pa lg iaro - I failed to say I did not intend to say that they would make a decision. I would have said, whatever the decision they came to would be presented to the Commission. I am sorry that I left that out. I really feel that there should be some input from staff along with the Commission. Whatever, but that is my point of view. Mayor Newill - Any other comments? Mana eg r Su eg rman - I was not finished with my list. Mayor Newill - Oh, I am sorry. We are still on your report. Mana eg r Su eg rman - I am not clear on whether the Commission desires for me to put all hiring's on hold. I would like to get clarity on that. Mayor Newill - I see one Commissioner who wants to see it on hold. Does any other Commissioner? Comm. Pa lg iaro -Can you give us some sense. Is there a down side if we go that route? What would be some of the problems? Manager Su eg rman -The only downside to it is that it tends to chip away at the concept of CounciUManager plan. It begins to putting the • hiring process in the hands of the Commission rather than the Town Manager where it appropriately belongs. I heard the discussion, so I wanted to find out whether or not if this Commission wants to go down that path. And I am open to that. Comm. Sorrelli - I would like to make a motion. Mayor Newill -Town Attorney, can someone make a motion? Manager Su e~ -You can make a motion, but all these things are just indications that you are giving me. A motion is not necessary. Mavor Newill -The Commissioner feels strongly, so he can make a motion. MOTION: Comm. Sorrelli moved to put all hiring on hold. Mayor Newill - Is there a second? I am not permitted to do it. Manager Su eg rman -You are if you pass the gavel under Robert's Rules of Order. Mavor Newill - I guess that part of me would like to do it, but the logical part of me says we have a potential problem in the Building Department if we put it on hold. But you said you contracted with an individual for six or three months. Manager Su eg rman -Sixty days. Comm. Pa liaro - What would be the problem it we put it on hold? Mayor Newill -There has to be an Office Manager over there. It is not something that we can ignore. Technically, right at the moment we do not have anybody in the Building Department that has done that work before. Comm. Sorrelli - We would put it on hold until we come up with something. We are not gong to put it permanently on hold. That is not my suggestion. Comm. Trinley -Town Manager didn't you say you have already advertised the Office Manager's position? Manager Su eg rman - We have. Comm. Trinley - Then I disagree. Mayor Newill -Disagree with what? Comm. Trinley -Disagree with putting it on hold. Town Commission Budget Hearing Minutes September 16, 2010 Page 26 of 28 Mana eg r Su eg rman - I do not want to move on until I hear from the majority of the Commission. I have heard one on each side so far. Vice Mayor Zwick - I thought I was in agreement with Commissioner Pagliaro. Mana er Su e~ -This is about putting the issue on hold. Town • Attornev -The issue is that you have a motion, but you do not have a second. Mayor Newill - We have a motion, but we do not have a second. If we pass it, how long does it stay on hold? Mana eg r Su eg rman - Until you instruct me otherwise. Mayor Newill -Any other Commissioner indicating that they are not in agreement putting it on hold. I will bow to the majority of the Commission. Mana eg r Su eg rman - So I will not put the hirings on hold. Mayor Newill -Technically we are only talking about one hiring. Mana eg r Su e~ - No, I have three vacancies right now, actually four: Finance Director, Accounting/Payroll Clerk, Administrative Assistant in the Finance Department and the Office Manager in the Building Department. Actually, two have closed, but they have not been hired, and two have been posted. Mayor Newill -Well, we started out in the beginning with some indications. Town Attorney, your position is a delicate position between the Commission, the Town Manager and what the Charter says. The problem that I have is if the Commission feels that we should be going outside also on some of these positions. I do not want to see us put somebody in place, then three weeks, a month or two months later we say we wanted to go outside too. Town Attornev -The problem is you have a motion. The motion will either die or if someone seconds it, you will vote on it. That is how I look at it. Mayor Newill - I second the Motion. Vice Mayor Zwick -Thank you. Any further discussion? Comm. Trinley -What is the motion? Vice Mayor Zwick -The motion is to put all hirings on hold. Motion made and seconded. Roll call vote please. ROLL CALL: Commissioner Sorrelli - Yes Mayor Newill - Yes Commissioner Pagliaro - No Commissioner Trinley - No Vice Mayor Zwick - No Motion fails by a 3-2 vote. Mana eg r Sugerman -Thank you for answering that. I heard the Mayor ask for the topic of employee evaluations be put on the 9/27 Budget Hearing Meeting. Mayor Newill - No, I said the Workshop. I don't think it is imperative that it be tied into the Budget. This is a policy. It has been a standing policy that there is a written annual employee evaluation. You were changing the policy. Mana eg r Su eg_rman - I did not change it, Sir. I made a recommendation. Sorry to interrupt you. Mayor Newill - I just want the Commission to discuss it again and take another vote. Town Attornev - I agree. That is a separate issue from the budget. Mana eg r Su eg rman -That is why I am going down this list so it will be on the 9/28 Workshop Meeting. The only thing that I heard was a desire of one member of the Commission to see what the cash impact would be to eliminate a portion of the COLA adjustment or the merit raises of Town Commission Budget Hearing Minutes September 16 2010 Page 27 of 28 5%. Or, not touching either of those necessarily, but capping the combination of those two things to some number other than 2.2% and the 5% that are in the budget. I heard one member of the Commission express a desire to see what those numbers are. I want to find out or not if the Commission wants to see what those numbers are. If you would, tell me the number that will drive our spread sheet. Vice Mayor Zwick - I would very much agree with Mayor Newill's suggestion in capping the raised at 5%. The best way is setting the cap at 5%. We really need to leave the COLA in. Mana eg r Su e~ - No, it is not. And actually, if it is your desire to cap at 5%, frankly it is easier to do it on the anniversary date as a merit increase and eliminate the COLA. The COLA adjustment is a flat 2.2% for everybody and it is implemented October 1St. It is part of the kick off of the new budget year. Vice Mayor Zwick -The other 5% is 0 to 5%. You say it is easier to take it out of that. I think we should see a spreadsheet showing what capping the increase for employees at 5% would do to us. Mana eg_r Su eg rman -And by that you mean eliminating the COLA? Is that what you mean? Because right now there are two components to the raises. Vice Mayor Zwick -Yes. Mayor Newill - To get the most benefit. Vice Mayor Zwick -Whatever gets the most benefit. By giving the 5% and eliminating the COLA. Mana eg r Su e~ -The 5% falls through the year. Mayor Newill -The 5% raises are at various times throughout the year and we would be able to pass more savings onto the residents Comm. Pa lg iaro - Dr. Sugerman, can you also give us the numbers in terms of what the cost would be of the 5% versus the 7.2%? Town Manager -Yes, we can do both. So, why don't we do it that way. I will give you two spreadsheets. I will give you the value of the 2.2% COLA and the value of the assumed 5% merit raises. I do not have anything else to add to the list. So I am done with my report, unless I missed anything. I tried to capture what you all said during the last 3 hours, and hopefully I have done that. . 9. PUBLIC COMMENTS AND REQUESTS: No Public Comments. 10. ADJOURNMENT There being no further business to come before the Commission, Mayor Newill adjourned the Budget Public Hearing at 8:00 PM upon a MOTION by Commissioner Pa lg iaro; seconded by Vice Mayor Zwick. APPROVED: Jim Ne}~Gill, CPA, Mayor Miriam S. Zwick; • Town Commission Budget Hearing Minutes TTY Q T. LQle ~ ~ A~,,~ • • • Dods M. Trinley, Commi~loner