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HomeMy WebLinkAboutDocumentation_Regular_Tab 7A_4/11/1996 ;N • fir �f• VILLAGE OF TEQUESTA Posy Office Boy 3273 . - 357 Tequesta Drive I•cqucsra.Florida 33469-0273 • (407)575-6200 . Fax. (407)575-6203 • Ca f0 Ml • VILLAGE OF TEQUESTA FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES • MARCH 25, 1996 I . CALL TO ORDER AND ROLL CALL The Tequesta Finance and Administration Committee held a . regularly scheduled meeting at the Village Hall, 3.57 • Tequesta Drive, Tequesta, Florida, on Monday, March 25, 1996 . The meeting was called to order .at 9 : 03 A.M. by Chairman Joseph Capretta. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were: Council.member ' Joseph Capretta, Mayor Ron T. Mackail and Councilmember Michael R. Meder. Also in attendance were Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello and Department Heads. Mr. Mackail made a motion to nominate Joseph N. Capretta as Chairman of the Finance and Administration Committee. The motion was seconded by Mr. Meder, and was passed and adopted by unanimous vote. • II. REVIEW OF ISSUES FACING TEQUESTA • Chairman Capretta explained that because of the Sunshine Law that Councilme_mbers had not been able to converse with newly elected Councilmember Meder to discuss items regarding village business; therefore, many issues would be discussed • • Recycled Paper e• I Y Finance and Administration Committee Meeting Minutes March 25, 1996 • Page 2 at today' s meeting. Chairman Capretta referred to a recent letter to the editor from John Giba, which had been printed in the newspaper, and • which had complained that the Village Manager had not urged the Village Council to replace the Village Hall complex, which was obsolete and too small. Chairman Capretta explained that the village Manager had, in fact, worked on • that issue and had recommended that the' size of the facilities to doubled, that architects had presented a selection of designs, and that alternatives were being pursued to find a way to reduce the cost so that the Village could afford it- -possibly by utilizing some of the vacant buildings in the downtown area. Chairman Capretta explained that the Village Council had recently created a Stormwater Utility which would provide money to upgrade the village drainage system, and that approximately $200, 000 had been received from FEMA for damages resulting from the October storm. Chairman Capretta commented. that it was one thing to say that things needed to be done and another to have the money to do them; and it was one thing to have a vision for the town and another to have the support of the people to accomplish that vision. Councilman Capretta stated that the Council must find a vision for the Village that the majority of the people would support, and explained that many people wanted as little as possible done so that the Village would remain the same. Many others realized that new municipal facilities were needed, and that the downtown area should be' improved; however, when details were discussed- -for example, the apartments planned by Mr. D.ivost.a and Mr. Van Brock- -some of those people really did not want another 300-500 families in the Village. The Village Council had discussed several items that they wanted to accomplish, which included a new reverse osmosis plant to assure that the Village would have a sufficient future water supply, improving the parks, improving drainage, and building up the downtown area. Chairman Capretta explained that the residents did not seem to understand that the S Finance. and Administration Committee Meeting Minutes March 25, 1996 • Page 3 village was basically broke, since taxes had stayed flat and the assessed value of the town had stayed flat, while costs had continuously risen; and that the 5% - 15% increase in assessed value that was common in the past had not happened in several years because there had been very little construction Chairman Capretta explained that if the Village could increase the assessed value to $400, 000000, that would provide more revenue and make it possible to accomplish the projects that the Village Council knew were needed; and stated that a plan must be established to create a dialogue with the public regarding how funding could be accomplished. Then a new master 5-year plan could be created and implemented with the support of the people. Chairman Cap-=etta suggested a focus group to discuss the matter which could be made up of businessmen, people who lived in different areas of the Village, and residents who represented other groups, and at least ten aginners- - people who were against everything. Chairman Capretta explained that if new revenue did not come from growth then it must come from a tax increase. Mr. Capretta explained that Dorner Trust, the major landowner in the Village, had • been sitting on their land waiting for values to rise, and suggested that if the Village could find a way to raise taxes on vacant land that they might be willing to sell so that growth could begin. Chairman Capretta stated that the • Committee must: decide at this meeting how to get the people involved and how to begin the communication process. Mr. Meder inquired regarding the legality of increasing taxes on a single category of land, to which the response was that taxes would be raised by the County Assessor if it could be proved that the land had a higher value than currently appraised for, using comparable sales. Village Manager Bradford commented that another alternative would be to assess the landowners by coming up with projects that would directly benefit them. Mayor •Mackail pointed out that the necessity of Finance and Administration Committee Meeting Minutes March 25, ,1996 Page 4 • demonstrating the need for new facilities to the public • could be communicated via the Department Heads. Mayor Mackail stated the difficulty of explaining why such a large sum needed to be spent, and expressed his opinion that it was necessary to invest in the Village, which was unique in the northern part of the County. Mayor Mackail suggested that a plan be prepared to demonstrate projects coming on line and at what point the Village would break even, and at what point the Village would begin to repay the investment in the community. Mayor Mackail stated that the Village had no debt . Mayor Mackail commented that he had read Mr. Giba' s comments about spending money on parks, and stated that the residents of the community had decided to spend that money, and that it had been a good investment because younger families were moving in with families and were using the parks . Mayor Mackail stated that he believed diversification was important but that it made it difficult to come up with a common plan. The Mayor commented that the downtown area was of vital importance, that the business sector wanted more traffic and business, but the people on Country Club Drive didn' t want the traffic. Chairman Capretta suggested that a dramatic way needed to be found to demonstrate to the public the need for new Village facilities, and suggested that a tour of the jail facilities would show how crowded things were, and that since most people had never been arrested they had never seen the inside of a cell. Councilmember Meder commented regarding Mr. Giba's concern about , spending money to comply with Ordinance 377 at the Village Hall when new facilities were needed, and questioned this action himself, since he believed that at the last .Finance and Administration Cactmittee meeting that a plan had been approved to move the administrative offices to another site and to make the existing site into a public safety facility. Chairman Capretta explained that had merely been direction to the architects who were working on drawings, Finance and Administration Committee Meeting Minutes March 25, 1996 • Page 5 and explained that they had first presented plans which • would cost approximately $7.75 million, and had been directed to look at less costly alternatives. Mr. Capretta explained that the date when a new facility would be constructed was unknown and might not be within the current Councils term of office, and the Committee was looking for alternatives the Village_ could afford. Chairman Capretta commented that if a building were found, then the question would be whether the Village or Lighthouse Gallery would buy it, or whether the Village might buy it and rent part of it to the Gallery, thereby in effect getting new facilities for little cost. Mr. Meder commented that if ideas such as the one just expressed by Chairman Capretta, and one he had suggested scme time ago that the water bill contain a separate item showing the amount of charges disputed by Jupiter, were communicated better to the residents they would more readily support the Village administration. Mayor Macka:Ll stated that the newsletter contained information regarding the Village, and all of the meetings were open to the public, but people just did not get involved unless an adversarial position was presented. Mayor Mackail gave as an example an option offered by Dorner Trust for the Village to purchase 7.5 acres for use by cultural facilities. The Mayor stated that now, because of money, the Village was losing BRITT and could lose Lighthouse Gallery; and the Gallery brought in about 30,000 tourists each year. Mayor Mackail explained that residents had not understood the plan, which had been to accept the option in order to allow BRITT and Lighthouse Gallery to conduct: feasibility studies, which could then allow them to apply for State of Florida grant funds to construct their facilir.les. Chairman Capretta indicated that the newsletter and the meetings did not seem to capture the interest of the people, and that the same group of people usually attended all the meetings unless there was controversy. Mr. Meder agreed Finance and Administration Committee Meeting Minutes March 25, 1996 Page 6 that a controversial issue would fill the Village Hall meetings but commented it would also be filled if issues were well communicated. Councilmember Meder drew attention to item II on the agenda for this meeting, Review of Issues Facing Tequesta, which gave the general public no real idea of what issues would be discussed, and stated that the meeting was posted in that morning' s' Palm Beach Post, in the Jupiter. Courier, on the bulletin board at Village Hall facing away Erom the street, and on a sandwich board in front of Village Hall. During ensuing discussion, Chairman Capretta expressed the opinion that even with better advertisement of meetings that people still would not attend, and made some suggestions which might get people interested in attending a planning meeting, which were to have a series of meetings to discuss a 5-year master plan, where a script would be provided of what would be discussed and also a few examples of ideas, some of which could be controversial to stimulate interest. Chairman Capretta also suggested the Councilmembers go out to different organizations, including Homeowners Associations, to talk to people and get them interested, and to ask them to appoint a representative to the planning conference. Chairman Capretta suggested that people who would be against the ideas, be invited in order to get negative opinions. During discussion of residential property versus businesses - drawing from the tax base, Village Manager Bradford explained that in his opinion the Village was actually overbuilt in terms of commercial space. In the early 1970s, .the Village had been zoned commercial from County Line Road to Bridge Road, with the, idea that it would become the location for a future regional mall, and now had seven shopping centers within one square mile. Until the early 1980s the village had been the hub of this region, however, when Indiantcwn Road became 4-lane and I-95 was extended from PGA Boulevard to Fort Pierce, the decline of Tequesta had begun, and now there was no way that the Village could generate enough business locations on the east side of the Finance and Administration Committee Meeting Minutes March 25, 1996 • Page 7 • river based on the current population. Councilmember Meder suggested that was true unless some kind of added value could be found to make the trip worthwhile. Mayor Mackail reported that Mr. DiVosta had indicated he had considered purchasing the Fashion Mall with the intention of improving it and creating an upbeat location, however, after discovering the amount of rent per square foot versus the price per square foot for the K-Mart shopping center and increasing the existing tenants .to meet payback for debt service, he had concluded that increasing commercial space would not be beneficial to the Village because of the current vacancies. Mr. DiVosta then had changed his direction and now planned to build residential two-story units. Mayor Mackail commented that Jupiter residents had no reason to drive to Tequesta to shop because they had everything in Jupiter; and explained that part of the zoning had been changed to mixed use to help business people. Village Manager Bradford ' explained that the attitude of business development people was that the sidewalks were • • rolled up at 6 P.M. and there were not enough people to . justify an investment. It was stated that Barnes & Noble, Catalfumo, and developer Joel Channing had all considered locations in Tequesta, but had decided against it because of the lack of projected return on their investment. Chairman Capretta commented that many people felt commercial development was the answer, however, the more the Village Council had studied the situation they had recognized that residential was what was necessary. The feasibility of a section allotted to rental apartments was discussed. Chairman Capretta explained that the timing was better for • development than it had been in the past several years; but before it began that communication was needed with the residents to come to consensus on the vision they would like to see for the Village. The recent application by Sterling House to build a 42-unit extended care facility and the battle that the Village had had with them over using a quality roofing material was discussed. Building Official Ladd reported that plans were now in his office from A Finance and Administration Committee Meeting Minutes March 25, 1996 Page 8 Sterling House with a full concrete tile roof as had been approved by the Community Appearance Board. • • Village Manager Bradford pointed out that Councilmember Meder' s continent regarding the necessity of creating a draw to make the trip to Tequesta worthwhile was very important, since the Village could not compete with Jupiter's Wal-Mart, Home Depot, etc. , and explained that every developer who had considered Tequesta had advised that the magnet should be a cultural and civic core for leisurely, pleasurable activities which would create business for restaurants, theaters, movies, etc. The Village Manager commented that the Village had never been able to utilize that concept, however, Lighthouse Gallery was in the process of leading • toward it . Councilmember Meder commented that the Village • could compete with Jupiter so long as they found their market niche. The Village Manager agreed, and explained that Jupiter had no central organized core and that Tequesta had an opportunity to become the core for both Jupiter and Tequesta. • Mayor Mackail commented that BRITT was a big loss to the community and if the goal was to become a cultural core, the Village needed to keep Lighthouse Gallery and the tourists it: would bring in each year. Mayor Mackail pointed out that the cost of new Village facilities might be funded by including Lighthouse Gallery, but another consideration was what would happen to the other businesses in the shopping center ;f Lighthouse Gallery moved out, since they depended heavily on the Gallery as an attraction. It: was mentioned that Sam's or Target might be interested in a Tequesta location if K-Mart left the Village, however, Chairman Capretta pointed out that Scotty' s had also been interested but had backed out, and again discussed the concept of planning meetings with representatives from Homeowners Associations, other areas of the Village, businessmen, etc. , to get input from many groups of people. Finance and Administration Committee Meeting Minutes March 25, 1996 Page 9 Chairman Capretta suggested a meeting of key people in the Village to let them help plan how the planning forum should be organized. Mayor Mackail commented that if the Village • continued to delay expenses, that only delayed the problem, and a plan must be formulated to overcome the shortfall until development increased the tax base. The Mayor suggested that business owners should be the first addressed. The Village Manager commented that over the past five years the tax base had decreased by 1.7% while the CPI had risen 15% and taxes in the Village had risen 7.2%. The Village Manager explained that the rate could go up but not technically he a tax increase if it only raised the same amount of money. Councilmember Meder commented that 2/3 of tax dollars paid by residents went to the County, and raising taxes would not put the full increase into Tequesta. Discussion ensued. Councilman Capretta commented that property ' must, be maintained in order to keep values from deteriorating. Mayor Mackail commented that he wanted his property values to rise in order to realize a return on his investment. The timing of new construction was discussed and when the tax income would be realized from those • projects. Village Manager Bradford stated there were only three ways tc raise more revenue through taxes: (1) raise the tax. rate, (2) increase new construction, and (3) improve the value of existing properties, and commented that a lot of long-term residents wanted to just raise the rate. The village Manager reported that Tequesta' s per capita income was approximately 12th out of 38 municipalities in Palm Beach County, while Tequesta's tax burden as a percentage. of per capita income ranked 15% less than the average tax burden of a municipality in Palm Beach County. Village Manager Bradford explained that Jupiter' s tax burden appeared to be less, however, fire rescue'was not included, and street and drainage improvements were assessed to the residents, while in Tequesta it was in the tax rate. Cauncil.member Meder asked that the Village Manager prepare Finance and Administration Committee • Meeting Minutes March 25, 1996 Page 10 a comparison of surrounding municipalities, including those , in Martin County, documenting how each municipality handled • such Items, and using any variables that Mr. Bradford considered important. Going into debt to finance projects was discussed. Councilmember Meder and Mayor Mackail both stated they did not like debt, however, Mayor Mackail indicated that an investment must be made in the Village, and suggested that business people be involved in a partners for progress plan. The Village Manager explained that spending problems were not too severe, that the Village should be able to handle the annual operating expenses, and the stormwater utility would provide revenue for drainage and infrastructure, so that the only real problem in terms of revenue was to make sure the village had sufficient growth to cover a reasonable percentage of the ongoing increase in operations plus the amount needed to bring Village facilities to a reasonable standard for a workplace. Village Manager Bradford commented that if the cost for facilities could be reduced to $3 million that it could be handled. Mayor Mackail stated that the Village needed a revenue neutral overhaul, and that he believed that was possible. Discussion ensued regarding establishing policy. Mayor Mackail suggested that the Village look at the point in time when a break even point would be reached, looking at tax increases from new construction planned by Mr. DiVosta and Mr. Van Brock in conjunction with the increased economic impact of additional homeowners living and shopping in Tequesta. Village Manager Bradford stated two theories had been established up. to this point: (1) ra:.se the tax base to $400,000,000 so that there . would be virtually no tax increase, or (2). to forget growth . and just raise the tax rate. Mr. Meder commented that if the assessed value of the town was generally declining at the same rate across the board and the same amount of money was needed, the millage rate increased but the amount of taxes paid by the people did not change. Mr. Bradford pointed out that the rates paid by individual property Finance and Administration Committee Meeting Minutes March 25, 1996 Page 11 • owners could change. In response to Councilmember Meder' s question regarding how often the County reassessed property, Village Manager Bradford explained that each year a computer sales analysis was done for every neighborhood, and a physical inspection was conducted every three years, and also reviewed permits issued each year. Village Manager Bradford also commented that a 3% cap had been voted in statewide. Chairman Capretta commented that the Village had been delaying expenses and was coming to the end of its string, so that the Village could not delay much longer investing in the community without a substantial tax increase. Chairman Capretta indicated that he believed the increase in assessed value would happen in. 3-4 years, however, that would not help with next year' s budget. Mayor mackail stated he was not afraid to go into debt if he could see the break even point, and agreed with Councilmember Meder that incurring debt must be the decision of the community. Mayor Mackail expressed his opinion that the community looked to the Village Council to make the right decisions, and a very basic plan supported by the Council would also be supported by the community. Councilmember Meder suggested information be provided to the residents from the Village government regarding projects being considered with a mechanism established for feedback; verified that the other Councilmembers had received his list of 29 items he would like to see accomplished. W. Meder • suggested a sign to identify the names of all committees, boards, and the Council, the date and time of the next meeting. for each, and either a copy of the agenda or where and when it could be obtained if it was not yet available. Councilmember Meder suggested that the sign could take the form of a program utilized on several older computers placed at strategic points throughout the Village which could be updated periodically by inserting a disk with the new information. The machines could be placed at key high traffic points and the help of clubs and organizations could be enlisted to help distribute information for programs such Finance and Administration Committee Meeting Minutes • March 25, 1996 Page 12 • as the- bicycle rodeo. Chairman Capretta advised that proper procedure would be to have staff conduct a study of the cost of hardware and software, with a trail at a couple of locations such as the library and Village Hall. Village Manager Bradford commented that the annual cost of the newsletter was $15, 000. Village Clerk Manganiello advised that the Village was preparing to launch a SEFLIN network in conjunction with the library. Councilmember Meder inquired whether a computer was available that he could work on, however, the Village Manager did not believe one was • available. Mr. Meder volunteered to do the proposal, and to present it to the Village Council at their April 11 meeting if he could get a computer to work with. Councilmember Meder requested that a copy of the village Code Book be placed into the reference section of the Village library. Village Manager Bradford' s response had been that the Village could be held responsible and would be required by the library to sign a hold harmless agreement since people took action based on the information in the Code book, and if someone removed a page or information was not totally up to date that information would be incorrect. Village Manager Bradford explained that the Town of Jupiter • had experienced problems when they had placed their code book in the library, which had resulted in the town removing their book and the library now requiring a hold harmless agreement. Councilmember Meder suggested notification on all the copies of the code book that the official copy was • located in the Village Hall and the library copy should only be used as reference. Mayor Mackail stated he was not in favor of this because of the potential exposure, however, would defer the question to Village Attorney Randolph. Chairman Capretta expressed concern that developers would not be able to ask questions at the library regarding code interpretation, and used an example that a similar situation would be placing a medical book in the library which people might use for self diagnosis. Councilmember Meder requested permission to speak to the village Attorney. • Finance and Administration Committee Meeting Minutes March 25, 1996 Page 13 Village Manager Bradford explained that his job was administrator and the Councilmembers were policy makers, and this was an administrative task. Chairman Capretta stated that although the Finance and Administration Committee did not support the idea, that Councilmember Meder could bring it up at the April 11 Village Council meeting to see if the other Councilmembers supported it, and advised that it cost $150 per hour to call the Village Attorney, and contact was typically made through Village manager Bradford who regularly contacted him and could place the matter on his agenda for discussion. mayor Mackail made a motion that the Village Code book remain where it had been in the past and that any functions related to the book be directed to the Village Manager, and that if Councilmember Meder wished to discuss this matter with the Council that was up, to him. Councilmeaber Capretta seconded the motion. Councilmember Meder asked that the motion be modified to allow him the opportunity to do more homework based on the input at this meeting. Mr. Meder was advised that he could always do homework at any time and could always, bring up any matter at a Village Council meeting. The vote on the motion was: Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - against The motion was therefore passed and adopted. Mayor Mackail stated he felt it was very important to stick with procedure on the ability to utilize computers and that • staff should he involved in determining cost since research was needed to see if it would work in conjunction with what was presently being done to determine whether both a newsletter and computers were needed, or if the cost would outweigh the benefit. • • Finance and Administration Committee Meeting Minutes March 25, 1996 Page 14 Councilmember Meder made a motion to study the cost of the . additional communication vehicles versus the existing communication vehicles in the Village of Tequesta to be done by staff. I►iscussion , of the motion ensued during which Councilmember Meder was advised it would be helpful for him to work with staff to learn procedure. Village Manager Bradford questioned that the original discussion had resulted in a decision to place computers in two specific locations initially, while the motion referred to communication vehicles. Mr. Meder suggested that the motion was to create policy. Mayor Mackail requested that only one computer be used for the initial trial. Chairman Capretta stated he had no problem with computers at a couple of • locations, however, the motion was to look at alternative methods to the newsletter, which could be all kinds of things. Councilmember Meder stated he believed all of the Committee members agreed to the ground rules for this specific instance, however, the motion was about if another idea came down the line that the same ground rules would apply, so that no one could do the proposal independent of staff . Village Manager Bradford clarified that in this specific instance one computer would be set up at one location. Councilmember Meder withdrew the motion. Mayor Mackail made a motion to study a remote location for a computer and the estimated cost. Chairman Capretta seconded the motion.- The vote on the motion was: Joseph IT. Capretta - for Ron T. Mackail - for Michael R. Meder - for . The motion was therefore passed and adopted. Village Manager Bradford explained that the process was that the Committee made recommendations. Now this would go to the Village Council, and if approved, then the study would be started. Councilmember Meder inquired whether he was • Finance and Administration Committee Meeting Minutes March 25, 1996 Page 15 limited from doing homework on this issue, to which Chairman Capretta responded that he could always do homework. IV. ANY OTHER MATTERS There were no other matters to come before the Committee. V. COMMUNICATIONS FROM CITIZENS • Tam Little, 486 Dover Road, stressed that the simple basic was that the Village needed money to do the projects needed for the village, and that anything done must enhance the tax base since that was the Village' s source of revenue. Mt. Little pointed out the necessity of establishing have tos or priorities such as the R/O plant. Mr. Little used as an example $4 million spent by Lake Worth which increased an individual tax bill by $30, questioned whether the Village had the ability to pay for projects through a bond issue and whether that would be tax deductible for residents. Mr. Little questioned what would happen if the real estate market took a dive, verified that the Village had sufficient water for the DiVosta homes, and stressed the importance of being in control of the water supply. The cost of the R/O . plant was discussed, and whether water would continue to be purchased from Jupiter. Mr. Little stated that the Village must wcrk on the water problem, but could not continue to do things that were not true necessities. Mr. Little questioned how much the Village had the ability to borrow. The response was $17 million. Mr. Little explained that figure must include all of the priorities. Mr. Little recommended that rather than spend the amount proposed to improve Dover Ditch that the Village first flush the drainage leading to Dover Ditch to see if that improved the flow. Wade Griest, Dover Road, commented that the Village needed • Finance and Administration Committee Meeting Minutes • March 25, 1996 • Page 16 to improve communications between the general public and the Village Council, since the public was not getting the message, as evidenced by the low attendance at meetings. Mr. Griest suggested one solution might be a public meeting forming a group of people from each section of town and a businessman so that the people, rather than special interest groups, were represented. Mr. Griest discussed needed • projects and stated the people should be aware of the cost and how they would be paid for. VIII. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 11: 50 A.M. upon motion by Councilmember Meder, seconded by Mayor Mackail, and unanimously carried. Respectfully submitted, 4�z �°ac chJ Betty Laur ATTEST: Recording Secretary • • Joann Manganiello Village Clerk • DATE APPROVED: