2011.01.25_TC_Minutes_WorkshopTOWN OF HIGHLAND BEACH
MINUTES OF TOWN COMMISSION MEETING
WORKSHOP MEETING
Tuesday, January 25, 2011 1.30 PM
Mayor Jim Newill, CPA, called the Workshop Meeting to order in Commission Chambers at 1:30
PM.
CALL TO ORDER:
Roll Call: Members present: Mayor Jim Newill, CPA; Vice Mayor Miriam S. Zwick;
Commissioner Doris M. Trinley; Commissioner John J. Sorrelli; and Commissioner John J.
Pagliaro. Also present: Town Attorney Tom Sliney; Town Manager Dale S. Sugerman; Town
Clerk Beverly M. Brown; Assistant to the Town Manager Zoie Burgess; Public Works Director
Jack Lee; Utility Maintenance Supervisor Bill Moore; Deputy Finance Director Cale Curtis,
Acting Sergeant David Scherer; and members of the public.
Pledge of Allegiance: The Pledge of Allegiance was given, followed by a minute of silence in
honor of members of the military, both living and deceased.
Civility Pledge: The Civility Pledge was recited by the Town Clerk.
1. ADDITIONS. DELETIONS OR ACCEPTANCE OF AGENDA
Mayor Newill asked for any additions or deletions. Receiving none, the agenda was accepted
as presented.
2. PUBLIC COMMENTS AND REQUESTS
Harold Ha~elmann - 4748 S. Ocean Blvd.
Pleased with what I see along AlA. The trees that we planted decorate the Town. When we
started this tree planting program, it was not going to be completed until the Milani Park project
was finished. Since the project is completed, would like to see Royal Palms planted along the west
side of A 1 A in the south end of Town.
Joe Asselta -Casuarina
I am here as a result of viewing the ABC News program. It was perplexing. Why did that
interview take place when all the facts are not known? Having watched that meeting, do not know
why that person was singled out. There are a lot of question, but no answers. We have to get
Town Commission Workshop Minutes
January 25, 2011 Page 2 of 9
answers. ABC claims an unidentified resident called the station. Was it a resident or an
employee? Can you get to the bottom of this? It is all speculation. I hope proper steps are being
taken.
Joe Yucht -Boca Highlands
Yesterday I attended the "Coffee with the Mayor." It was the most informational meeting that I
have ever attended. Give & take -back & forth. All subjects brought up were thoroughly
discussed. Thanked the Mayor and the Town Manager for the discussion.
Dr. Seymour Strauss -Boca Highlands
For the eleventh year in a row, I am bringing to Highland Beach the Lyric Chamber Orchestra. A
performance will be held on Friday night at St. Lucy's. A donation of $12.00 will be collected at
the door. We need the support of the residents as the Town Commission has a policy that does not
allow them to make a donation. Mayor Newill -Wished them success.
3. PRESENTATIONS
• Announcement of the Town Receiving the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers Association for the Fiscal
Yeaz Ended September 30, 2009.
Town Manager Sugerman -The Government Finance Officers Association (GFOA) has advised
that the Town of Highland Beach has earned its Certificate of Achievement for Excellence in
Financial Reporting for the fiscal year ended September 30, 2009. This is the 19`t` year in a row
that the Town has earned this distinction. The Certificate of Achievement is the highest form of
recognition in governmental accounting and financial reporting, and its attainment represents a
significant accomplishment by a government and its management. The Town's Comprehensive
Annual Financial Report (CAFR) was judged by an impartial panel of GFOA and was determined
to meet the high standards of the program including demonstrating a constructive "spirit of full
disclosure" to clearly communicate its financial story, and to motivate potential users and user
groups to read the Highland Beach CAFR. Copies are available both in Town Hall and the
Library. The GFOA has sent the Town of Highland Beach its Certificate of Achievement Plaque,
which I would like to present to Deputy Finance Director Cale Curtis who will proudly display the
plaque on the walls of our Finance Department. Manager Sugerman read the wording on the
plaque and presented it to Deputy Finance Director Curtis.
4. BOARDS AND COMMITTEES
A) Boazd Correspondence:
• None
B) Board Action Report:
• To be included with next week's agenda.
C) Boazd Vacancies:
• Beaches & Shores Advisory -Two full terms
Town Commission Workshop Minutes
January 25 2011 Page 3 of 9
Talent Bank Interviews:
Elizabeth Andrews -Stated she has been visiting Highland Beach for many years, and
just retired here in February. Has actively taken part in waterfront projects and
preserving wildlife for many years in an urban setting. She would like to contribute to
the Town in preserving wildlife, birds and turtles.
Ira Oaklander - Is a retired architect and an avid boater. Interested in protecting our
waterways and brings waterfront knowledge and experience. Has been a full time
resident for seven years.
Alexis Pinken -Stated that she has lived in Highland Beach for the last eight years and
cares very much for the community. Impressed with the way the Town is run and would
like to work preserving our beaches.
• Planning Board -One unexpired two-year term
Talent Bank Interviews:
Nancy Beaumont -Recently moved to Highland Beach from California. During her
career she has been involved in Human Rights & Diversity; Angels of Red Cross;
Rotary; and as a sculptor has many pieces on display. Comm. Sorrelli -Have you ever
attended a Planning Board meeting? Ren1v -Not in Highland Beach. Comm. Pa lg iaro -
Your application states that you have a lease option. Is that year-to-year? Reply _ It is
my intent to purchase the unit.
Stephen Golding - Is a partner in an accounting firm and has worked with many
municipalities during his career. Has lived in Highland Beach for sixteen years and
fmds that he now has the time to donate and to get involved in the community. Comm.
Pa la iaro -The Planning Board meets during the day, would you have a problem
attending since you work full-time? Reply - No. He is a principle in the firm and can
arrange his time accordingly. Mayor Newill -Appreciate that you applied, as every
Commissioner started out by serving on a Board prior to running for election.
• Board of Adjustment & Appeals - Re-appointment 02/11- 01/14
Talent Bank Interviews:
Joseph Colby -Stated that he is completing his three-year term on the Board. Felt that
they overall did a good job during his tenure, and he would like to continue to serve the
community as a member of this Board.
D) Monthly Board Meetings
• Special Magistrate -February 3rd -Cancelled
• Beaches & Shores Advisory -February 8th -Regular - 9:30 AM
• Boards Luncheon -February 9~' -Noon
• Planning Board -February 10th -Regular - 9:30 AM
• Bd. of Adjustment -February 15th -Regular - 9:30 AM
Town Commission Workshop Minutes
January 25, 2011 Page 4 of 9
5. PROPOSED ORDINANCES AND RESOLUTIONS
• None
6. NEW BUSINESS
A) Discussion Regarding the Installation of Header Curbs on Side Streets Intersecting
SR AlA
Town Mana eg_r Sugerman -The Commission may recall that during the 2009-2010 budget year,
we had placed money in the budget to install header curbs at the intersections of Highland Beach
Drive, Russell Drive, and Bel Air Drive where those three residential streets meet AIA. The
purpose of the header curbs was to protect the radii and the grass (the swale area) from those
vehicles that cut the corner too tightly. Working with Mathews Consulting, we designed the
project and put it out to bid. The low bid was from Kilbourne & Sons in the amount of
$16,246.25. Once we got the bids back, we applied for a construction permit from the Florida
Department of Transportation (FDOT) because we would be doing construction work in the FDOT
right-of--way. FDOT denied our permit because they did not like the type of header curb that was
specified by the consulting engineer. So we had the project re-engineered to meet the FDOT
requirements. Since the design plans changed, we had to rebid the project. We have three new
quotes which meet the new design standards and will meet the requirements of the FDOT permit.
The results of the bidding are as follows: Kilbourne & Sons - $22,470.00; Carr Driveways -
$24,550.00; Michael A Kausch - $26,964.00. Kilbourne & Sons is still the low bidder; however,
the 2010-2011 annual operating budget did not include funds for this project, because we did not
know if we could ever actually get a construction permit from FDOT. This agenda item is being
presented to the Town Commission for purposes of discussion. If the Commission would like us
to proceed with the project, then funds would have to be allocated from the General Fund Reserve
for Contingency line item of the budget -Account #001-590.000-599.000. As of November 30,
2010 the General Fund Reserve for Contingency line item had $622,800.00 in it. Included in your
packet was the background material on the topic provided by Jack Lee. Being that this is a
Workshop Meeting, there will not be a vote on this matter. After discussion, this item can be
carried over to the February 1, 2011 meeting agenda under new business.
Mayor Newill -Since this has already been approved previously, can it just go straight to the
consent agenda? Mana eg_r Sug_erman - It will be necessary for the Commission to approve the
signing of a contract and to allocate funding from Reserves. It will have to go on the agenda as a
new item.
B) Correspondence -Asphalt Consultants, Inc.
Contract Dispute
Manor Newill - I asked that this be put on the agenda for the simple reason that the contractor
wrote a letter to all the Commissioners. Seeing that he did that, I felt that we should at least put it
on the agenda and discuss it. As far as I am concerned, I read the letter, talked to the Town
Attorney, and I think this is completely under the Town Manager's threshold. He negotiated the
Town Commission Workshop Minutes
January 25, 2011 Page 5 of 9
contract and my personal opinion is that he should handle it. I am giving all the Commissioners
the opportunity to weigh in, since you all received the letter.
Comm. Pa liaro - I would like to know from Town Attorney Sliney, is that a fact? The gentleman
made some statements and raised questions about the role of Dr. Sugerman. Is indeed the Town
Commission the final authority on this, or is it the Town Manager? Attorney Sliney -The Town
Manager wrote a letter to Asphalt when this matter came up and made some determination as to
what the amount due was. After this letter was sent, the Commission received a letter from
Asphalt. The contract, if you read both the Manager's letter and the letter from Asphalt, both refer
to Section 37 regarding disputes, but neither letter refers to a section on arbitration. Basically, in
Section 37 it says that any disagreement would be settled by the Town Manager and indicates that
the Town Commission would be in a position to ratify the settlement, so that is why it is here.
Asphalt Consultants signed a contract that did not include an arbitration clause, through no fault of
the Town. The Commission would have to decide whether it wished to support the Town Manager
or whether it wants to take another course of action. Comm. Pa lg iaro - I guess my question, based
on what you said, is that you feel that we are on pretty firm ground; that it was indeed the Town
Managers prerogative to make this decision, and we would not be open to a suit. Attorney Sliney
- I think Asphalt recognizes the fact that the Town Manager has the ability to decide that. They
just do not like the decision. The letter from Asphalt indicates that they want binding arbitration.
The contract does not have that provision in it.
Com. Sorrelli -Asphalt wanted a meeting with the Town Manager and he turned them down.
Attorney Sliney -When this comes up again at your next meeting, you can decide whether to
follow the contract or whether the Commission wishes the Town to take another course. Manager
Sugerman - May I answer that question. I brought some documentation with me in case the
Commission wants to get into it. I have met with the contractor twelve times. After twelve
meetings on this subject, I advised the contractor that I would not be meeting with him anymore,
because my position after twelve times was not going to change. I brought all the files with me
today.
Mayor Newill -Any other questions? Unless somebody objects, we will let the Manager continue
negotiating the contract. Attorney Sliney - I think that the Commission is going to have to address
it because the contract indicates that you have to ratify what he has or not has done. Mayor Newill
- Which means we cannot take a vote today, but will move it over to next week's agenda. Reply -
Correct.
Mana eg r Su eg rman - It will be put under new business. The president of Asphalt Consultants,
Chris Baczewski is here today if you would like to hear from him.
Chris Baczewski - I would like to thank you initially for choosing me for this contract and thank
you for the opportunity to speak. As I wrote in my letter, I gave this job a year of my life. You
must have seen me out there day and night. I did everything in my power to give you a really great
project, something that I could be proud of. I am proud of the way my guys performed, taking care
of all the resident's properties and concerns. We have this small dispute pertaining to the contract.
I really do not think we are looking at it the right way, because the contract says that the dispute is
settled by the Town Manager only if he has the specific authority of the Town Commission to do
Town Commission Workshop Minutes
January 25, 2011 Page 6 of 9
so. Now, keeping in mind that the contract is what it is. He is actually the party that is against me.
So he is not at all impartial. He is affected by his own decisions. He benefits from his decisions. I
do not see how that could be an impartial decision. How could I ever get an impartial decision
from Mr. Sugenman, because he basically would have to decide against himself? That to me is an
unworkable contract. I feel Mr. Sugerman feels very comfortable in his decision. He has told me
that he has the world's deepest pockets, and he feels confident enough to stake his career on it.
While I am not as confident as he is, I also feel that I have a very strong position. I have been a
contractor for twenty four years, and have only gone to court once. The only time that I did the
opposing party spent $200,000.00 on combined attorney's fees to find out that they really were not
right. I am here to eliminate all that. I do not want to go to court. Why don't we get an impartial
person? The American Arbitration Association could provide us with an independent third party
who would listen to this complaint, instead of letting Mr. Sugerman decide the dispute, let a third
part decide the dispute. These arbitrators do it for a living. That was my intent in writing the
letter, to point out that Mr. Sugerman should not be the person to make this decision as he is not an
independent arbitrator and cannot be impartial. I would feel better with that process without
having to go to court, and having to spend $200,000.00 on attorney's fees. It is not a large amount
of money, but it is a large amount to me. As you might have heard, this is my last job. It is really
hard times for contractors. I have had to retire, but not willingly. Right now $32,000.00 is a lot of
money to me.
Comm. Sorrelli -Have you met with Mr. Sugerman twelve times? Mr. Baczewski - I believe Mr.
Sugerman is talking about regular progress meetings. Since the event took place, we have had
twelve progress meetings. I stated at each one of them that the contract says each claim must be
put in writing within three days of knowing the event. I asked him every time to put it in writing,
and he never did so. When I finally got the letter dated June 30~', it was not even addressed to me.
It was addressed to the consultant. It was some 60/75 days beyond the event. From that point on,
when I asked him to meet with me in regards to the letter and give specifics -date, claim, and
when was this discovered, he would not meet with me. He said we were done, my decision is
final. At one point we were pretty far along in picking an arbitrator. He had suggested a course of
action. I followed it. I was working on a group of arbitrators that we could alternate, strike and
settle on. We were well on our way to completing the procedure and then I received the letter from
him stating his final ruling. At that point, I guess the arbitration was over. We have never had a
meeting about specifics of the claim about dates or time lines. In the twelve meetings that we had,
those were progress meetings that we had every other week. We did not have a single meeting
after the letter was written specifically about that subject. I have a big problem with the statement
about twelve meetings.
Mana eg r Su e~ - I will respond to that. That is not true. We did meet, Chris and I, outside the
progress meeting, twice. But, I am not here to argue about that. You are right Commissioner. The
claim was for $32,500.00. Subsequently, on Thursday, we received a new claim. Last Thursday I
was put on notice by the Public Works Director that there is a brand new claim out there. I have
not shared it with Chris, but it is $2,440.00 for a cracked line at Ambassador's South. So, I think
now we have $35,000.00 in claims.
Town Commission Workshop Minutes
January 25.2011 Page 7 of 9
Mayor Newill - Is there a time limit on these claims? Mana eg r Su eg rman -There is a one-year
warranty on the project. Manor Newill - In other words, we can get additional claims. Attorney
Sliney - I would have to check the contract. I have not gone beyond the Town Manager's letter.
Mayor Newill - If there are no more questions, I guess our directive would be for the Town
Attorney to review that contract and be prepared to discuss it at next week's meeting.
Comm. Sorrelli -Why did you agree not to go to arbitration? Mr. Baczewski - I want to go to
arbitration. I suggested arbitration all along. Mr. Sugerman changed his mind and withdrew the
offer of arbitration. Attorney - My understanding is that the contract does not call for
arbitration. Other contracts might call for arbitration for disputes, but this contract does not call
for it. Mana eg r Su eg rman - In one of the last discussions that I had with Chris, I was buying into
his arguments, but since I was trying to protect the Town's money, I might not have been the most
neutral of persons to be involved in that decision. So, I originally said let's find an independent
neutral person who could look at it and see whether or not my interest in protecting the Town's
$32,000.00 was valid. He agreed. Then I turned to the Town Attorney and asked him to review
with me the dispute section of the contract. The Town Attorney suggested that I not go down that
path because there is no provision for arbitration. That is when I wrote the letter to Chris telling
him that I no longer wanted to go down the path to arbitration and withdrew it as an offer. I was
trying to find a common ground, but with good counsel from the Town Attorney, I wrote the letter
to Chris. It was the best thing for the position with the Town and he has written his response.
Going to arbitration was a discussion that I had with the two of us. But the best advice was not to
go down that path.
Comm. Sorrelli - Is it possible that you two guys can sit down and talk before we go to court? Mr.
Baczewski - He will not sit down and meet with me. Mana eg r Su eg rman - I would be happy to
meet with him. Mr. Baczewski - I agree that the contract does not have an arbitration resolution
clause. The way the contract is written right now, it is an unworkable contract. Manor Newill -
The Town Manager has agreed to meet with you. I hope that the two of you could meet before
next week's meeting.
7) MISCELLANEOUS -ITEMS LEFT OVER
A) Status -Commissions' January 4, 2011 Directive to the Town Manager
Mayor Newill - I am going to make two recommendations regarding the Town Manager. I want
the Commission to consider these over the next week. At the meeting next week, if any
Commissioner feels my recommendations have merit, they can make a motion. This is a
Workshop and we cannot vote at this meeting.
Since the Town Manager has chosen to ignore the direct order issued by the Town Commission on
January 4, 2011, and due to the excessive punishment issued to the Town Clerk on her first
recorded violation by the Town Manager and the embarrassment that has descended upon the
Town due to this situation, I am recommending the Town Commission consider suspending the
Town Manager with pay for a period of four (4) months. During this suspension, the Town
Manager would be banned from all Town property, relinquish all use of Town equipment,
Town Commission Workshop Minutes
January 25, 2011 Page 8 of 9
supplies, Town personnel and services. Secondly, ninety days prior to the end of the Town
Managers three year contract (June 30, 2011), I recommend the Town Commission send by
registered mail, their intention of not exercising the extension of another year of his services under
the contract.
Are there any questions or comments?
Comm. Pa lg iaro -Town Attorney, on these recommendations, what is the legality? Town
Attorney Sline~- As we just discussed, there always can be litigation.
B) Minutes
January 4, 2011 -Regular Meeting
No comments received from Commission, to include item on the February 1, 2011 Consent
Agenda.
8. REPORTS -TOWN COMMISSION
Commissioner Pagliaro - No Report.
Commissioner Sorrelli - No Report.
Commissioner Trinley - No Report.
Vice Mayor Zwick - No Report.
Manor Newill -Yesterday, I held another "Coffee with the Mayor." There were
approximately thirty-two residents in attendance. Topics discussed included: traffic light;
trash; repairs on walkway; Renaissance fence; Milani Park; questions not being answered at
Town Commission meetings; and a Boca Highlands representative expressed their satisfaction
with the outcome of the Milani Park project.
9. REPORTS -TOWN ATTORNEY
No Report.
10. REPORTS -TOWN MANAGER
No Report.
11. CONSENT AGENDA
None.
Town Commission Workshop Minutes
January 25, 2011 Page 9 of 9
12. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT
MEETING
No further comments received.
13. ADJOURNMENT
There being no further business to come before the Commission, Mayor Newill adjourned the
Workshop Meeting at 2:22 PM upon a MOTION by Commissioner Sorrelli; seconded by
Commissioner Pa 1~ iaro.
APPROVED:
Jim Newill, A, Mayor
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Miri S. Zwick, , is Mayor
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Doris M. Trinley, Commissio er
ATTEST•
everly M. rown, MMC
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Date