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HomeMy WebLinkAboutDocumentation_Regular_Tab 14A_4/13/2000 q 04/06/2000 15:00 4076941591 1.13)__ /I- 4 1111)14 VILLAGE OF TEQUESTA Putt Office Box 3273 • 250 Tequesta Drive •Suite 300 • --• Tequesra, Florida 33469-0273 •• (561) 575-6200 `► ��!' Far(561)575-6203 VILLAGE OF TEQUESTA • FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES MARCH 22, 2000 I. CALL TO ORDER AND ROLL. CALL The Tequesta Finance and Administration Committee held a regularly scheduled meeting in the Village Hall Council Chambers, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, March 22, 2000. The meeting was called to order at 3:00 p.m. by Chair Joseph Capretta. A roll call was taken by Village Manager Bradford_ In attendance were the . following Committee members: Chair Joseph Capretta, Co-Chair Basil E. Dalack, and Co-Chair Sharon Walker. Also in attendance were Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello, and Department Heads_ II. APPROVAL OF AGENDA Co-Chair Walker made a motion to approve the agenda as amended. Co-Chair Dalack seconded the motion. The vote on the motion was: Joseph N. Capretta - for Basil E. Dalack - for Sharon Walker - for The motion was therefore passed and adopted and the agenda was approved as submitted. III. CMJNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There ware no communications from citizens. Recycled Pages 04/06/2000 15:00 4076941591 PAGE 02 FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES March 22, 2000 Paget 2 IV. REVIEW OF AUDIT REPORT FOR FISCAL YEAR ENDING 9/30/99. EDiWARD T. HOLT, C.P.A. ; N NLEN, HALT AND MINER. Mr. Edward T_ Holt, partner in the firm of Nowlen, Holt and Miner, and Danielle Russell, Manager, were present to review the audit report. Mr_ Holt explained that the audit was a financial and a compliance audit, and was formatted so that it could be submitted to the GFQA for a certificate of financial reporting award. Chair Capretta questioned whether the problems discussed at last year's review had been solved, to which Mr. Holt responded he believed those problems had all been resolved. Mr. Holt explained that the objective of an audit was to have independent auditors audit the financial records of the Village and render an opinion as to whether they were in conformance with generally accepted accounting principles, and stated he was happy to report that was the case. Mr. Holt referred to total equity and other credits of which the undesignated fund balance was approximately $1,340, 000, which was a healthy position, and represented a couple of months operating costs. Chair Capretta discussed borrowing from undesignated funds to pay for capital improvement projects. Mr. Holt referred to pages 23 and 24, which showed revenues had been budgeted at $4.5 million while actual revenues taken in had been almost $4.8 million; expenses had been budgeted at $4.7 while actual was $4. 3; general government had gone from $951, 000 budgeted to $839, 000, all of which reflected an effort to spend less. Public Safety was also less than budgeted. Mr. Holt explained that the Village was trying to get as close as possible to actual budget figures, and had actually spent less than budgeted. Mr. Holt commented on a note to the financial statements which addressed the situation with an insurance company and the fact that the liability could not be estimated. Village Manager Bradford explained that the Village's former workers compensation insurance provider, which was a self insured pool of governmental entities, had became financially insolvent approximately a year ago, and had informed the Village they would be responsible for two claims, for which the total liability was unknown_ The insurance provider was • 04/06/2000 15:00 4076941591 PAGE 03 FINAR= AND ADMINISTRATION COMMITTEE MEETING MIINVT$8 March 22, 2000 Page 3 now filing for Chapter 7 bankruptcy. Village Manager Bradford reported that the City of Pala Beach Gardens and Seacoast Utility Authority were interested in taking legal action on this matter and he had notified Village Attorney Randolph of that and had put the Village Attorney in touch with the City of Palm Beach Gardens' attorneys. Village Manager Bradford explained the loss prevention specialist had estimated the total claims at $30,000 to $35, 000. Mr. Holt referred to the statistical section, required by the GFOA, which contained reports and information not received in a strictly financial audit. Mr. Holt noted bond debt had gone down significantly each year, and in 1999 was $188. 00, which was very positive. Mr. Holt explained that the section of the audit on internal control and compliance called to attention any non- compliance or weakness in internal control, and that there were degrees of seriousness as to whether a condition was required to be reported. Mr. Holt stated segregation of duties was a reportable condition, further described in the management letter. This item had been noted for several years, because with such a small staff it was very difficult to segregate duties_ Mr. Holt suggested the possibility of someone to come in periodically to do testing. Weaknesses noted were in the area of bank reconciliations, which were done by the same person who participated in receipt and disbursement of cash; and recordkeeping for investment income, which was done by the same person who initiated investment transactions and had access to cash. Mr. Holt noted that some areas addressed in the past few years had been eliminated, but control cycles still existed that could be improved. Mr. Holt commented that presently the Community Development Department Manually recorded transactions and collections, then remitted the funds to the Finance Department for deposit, and that a computer program was available which should be utilized for efficiency purposes. In the area of grants, Mr. Holt explained someone needed to be primarily responsible who had financial background. Mr. Holt explained that the Fire Pension Plan contribution had been overfunded and in the current period it should be underfunded to correct this; and the actuarial study would indicate the proper amount to be paid. 04/06/2000 15:00 4076941591 PAGE 04 FINANCE AND ADMINISTRATION COMMITTEE STING MINUTES March 22, 2000 Page 4 Statements were included that the financial statements required to be sent in were in substantial agreement with the audit and that the Village was not in a state of financial emergency. The only oversight unit waa the pension plan, which was included in the statements. In response to the management letter, Village staff had stated if additional staff was requested and authorized then efforts would be made to segregate duties; that software had been purchased and conversion to automated collection procedures was continuing; that work was in progress to establish procedures to assure that the Village planner in conjunction with the grant consultant was involved in the application and administration; and that staff was reviewing the pension contribution procedures. Chair Capretta requested a guideline as to how much debt the Village should have, to which Mr. Holt responded any municipality which was expanding would have more debt than those which were not expanding. Chair Capretta explained how he would calculate how much debt could be afforded, and indicated he believed the Public Safety facility could be constructed but was not quite sure whether there was enough to also build a Village Hall. Debt limitation was discussed. Mr. Holt explained that the Village had a low tax base compared to other cities, and the numbers clearly indicated the Village did not have much debt. Chair Capretta commented that the Water Department made enough profit that only half the profit would be used for debt service for the new reverse osmosis plant.- Chair Capretta commented that for the rest of the Village, when it was known how much additional tax base would be created by new construction then projections could be made to see what the Village could afford. Chair Capretta commented that many people in the Village were confused regarding the village's $5 million line of credit, and considered that amount to be debt even though it had not been used. Village Manager Bradford explained that people also distorted the $1 million in actual debt by adding the Water Department debt which did not count toward the Charter cap, and also double counted the debt, making it look like a bad picture when in reality it was not. Co-Chair Walker referred to page 118 which listed taxable 04/06/2000 15:00 4076941591 PAGE a5 FIB AND ADMINISTRATION CC**IITTSS MEETING IUNUTBs March 22, 2000 Fags 5 value from 1991 to 1996 as the same, with a huge increase in the subsequent four years, which she commented indicated the Village was doing something right. Chair Capretta commented on debt that had been paid. Village Manager Bradford commented that on the subject of automated collection procedures he knew Mr. Ladd had purchased the software and someone should make sure it was installed. The Village Manager commented that on the subject of grant compliance, at the next Village Council meeting a contract would be presented to acquire the services of a company who did grant administration and acquisition services, to be paid out of the Community Development fund. Village Manager Bradford advised that staff knew they were overfunding the pension plan but did not make any adjustments because negotiations were in progress with the employees regarding whether to go from a defined benefit plan to a defined contribution plan. Village Manager Bradford gave an example that if the firefighters did not go with a defined contribution plan, the Village could go to them and tell them their pension plan was overfunded, and instead of the Village taking 100% of the savings, the difference could be split and each would save a little. Village Manager Bradford explained that idea was on hold because of the union activities, and this situation would work itself out over the next six months. Co-Chair Walker reviewed population increases over the past few years. Co-Chair Walker requested a short version of the transmittal letter, and especially the second paragraph whic'. explained the low Village debt, as well as the section regarding award to the Village of a financial award certificate for the past 16 years, be included in the next edition of Smoke Signals. Further discussion regarding commitments made by the Village ensued. Village Manager Bradford questioned the duties of the Audit Committee under the law, to which Mr. Holt responded there was no State statute regarding Audit Committee duties, but that their function was normally to review the audit report and make a recommendation to the full Council whether to approve the report. The requirement in the State statute was only to establish an Audit Committee, and did not address their duties. Village Manager Bradford explained that the Committee's function today was to recommend to the 04/06/2000 15:00 4076941591 PAGE 06 FINS AND ADMINISTRATION COMM2TTFE MEETING MINUTES March 22, 2000 Page 6 full Village Council whether to accept the audit report and the full Council had to vote to accept the report in order to transmit it to the proper parties within the required time frame. Co-Chair Walker mad. a motion to recommend to the Village Council ecceptence of the audit report. Councilammber Maack seconded the motion. The vote on the motion was: Joseph N. Capretta - for Basil E. Dalack - for Sharon Walker for The motion was therefore passed and adopted. V. CONSIDERATION OF SPRINT PCS WIRELESS T=LEC * jNICATIONS TOWER ON TEQOE8Th WATER TREATMENT PLANT PROPERTY Village Manager Bradford explained that Mr. Joe O'Hagen from Sprint PCS had requested the Village's position on allowing Sprint PCS to lease property from the Tequesta Water Department at the water treatment plant to provide for a wireless telecommunications tower. Village Manager Bradford noted that the Village ordinance on this matter encouraged telecommunications companies to utilize public property for telecommunications towers, discouraged proliferation of the towers, and encouraged co-location so that others could use the same tower. Village Manager Bradford explained that Sprint was willing to comply with the ordinance and to pay the Village to lease the property, and had requested a entry and testing agreement to physically review the site and ascertain if the site was actually useable. Joe O'Hagen provided an overview of Sprint PCS operations, and presented the request from Sprint PC3 to erect a tower_ Different types of towers were described. A tower built for co-location would benefit the Village by cutting down on proliferation of towers and providing additional rental revenue to the Village. Mr_ O'Hagen explained that towers were needed every 2-4 miles for optimum signal at the high frequency used. Mr. O'Hagen explained that Sprint PCS would 04/06/2000 15:00 4076941591 PAGE 07 FINANCE AND AL*IINISTRATION CCIIMITTEE MEETING MINUTES March 22, 2000 Fags 7 charge co-locators a rental fee but they would need to get a ground lease from the Village. The amount of money from each carrier was estimated at $300, 000 - $400, 000 over a 25- year period with 5-year renewals. Mr. O'Hagen presented pictures of monopole and lattice towers. Mr. O'Hagen requested a 150' tower, and indicated the location on the site_ Co-Chair Dalack questioned whether the tower would conflict with the water department operations. Staff reported no problem so long as the fall zone was outside all tanks and wells. Co-Chair Dalack stated any approval would be contingent upon not affecting water department operations. Co--Chair Dalack questioned whether another carrier would have their own equipment, to which the response was affirmative. Mr. O'Hagen explained in response to questions from Co-Chair Dalack, that Sprint had a master lease with each carrier, and explained how the Village could receive rents. The proposed site as indicated by Mr. Fallon was discussed. Mr. O'Hagen explained that some carriers required a one-story shelter, that a standby power generator was desirable but not necessary, and that each carrier required 200-amp service, a T-1 telephone line and a regular telephone line. Village Manager Bradford commented the Village would make $20, 000 to $25,000 per year from Sprint alone. Aesthetics were discussed_ Co-Chair Walker questioned whether other locations were available. Mr. O'Hagen explained that there were other Village-owned properties but this location was considered best. Martin County locations were not an option because they limited tower height to 100' . Mr. O'Hagen commented there were condos that might accommodate Sprint, and it was desirable to use existing structures when possible; however, if a tower was built it needed to accommodate several carriers as well as the Village's telecommunications needs for fire, police, and emergencies. A study would be done to assure that frequencies did not conflict with any frequencies used by the Village. Joe Hall asked what problems might exist with people and buildings nearby, to which Mr. O'Hagen responded towers were built to Broward and Dade County standards to withstand hurricane winds. Mr. O'Hagen explained that with a tower on the proposed site, there was sufficient fall area without impacting any buildings, and health concerns should not be 04/06/2000 15:00 4076941591 PAGE 08 FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES March 22, 2000 Page 8 a problem.. Village Manager Bradford explained that the request at this time was to authorize the Village Manager to sign an entry and testing agreement to determine that the soils were not corrosive and that radio frequencies would not be a problem. Co-Chair Dalack made a motion to recommend to the Village Council authorization for the Village Manager to sign an entry and testing agreement with Sprint PCS. Chair Capretta seconded the motion. During discussion of the motion, it was pointed out that if this authorization was approved and the request proceeded through the application process, if there was a special exception then surrounding property owners would be notified and a public hearing •ould be held, however, the apartment houses to the north were not in the Village, so those people would not be notified. If there was no special exception, there would be no requirement to notify anyone. The vote on the motion was: Joseph N. Capretta - for Basil E. Dalack - for Sharon Walker - against The motion was therefore passed and adopted. VI. REVIEW OF PROPOSED REORGANIZATION OF PORTIONS OF TEQUESTA WORKFORCE Village Manager Bradford explained he had provided several different work charts, a copy of current and proposed job titles and salary ranges, and some job descriptions. Mr. Bradford described a work chart for the Utilities Department broken into two functions, Water and Stormwater, under which were Administration, Pumping and Storage, and Distribution. The Village Manager pointed out four service technicians whose duties were maintenance and were limited to the Water Department and specifically Distribution, listed under Facilities Supervisor. Also under Pumping and Storage (the treatment plant) was a proposed position Utilities Services Coordinator_ This person would be a technician to monitor and maintain the devices in the water plants and would 04/06/2000 15:00 4076941591 PAGE 09 FINANCE AND ADMJISTRATION CommIITTEE MEETING MINUTES Marsh 22, 2000 Page 9 required to have a plant certificate but not necessarily at the level of the other plant operators. The next chart was for Public Works and Recreation, and the Village Manager pointed out that the Park Foreman was limited to recreation, and the equipment operators were limited to Public Works. Village Manager Bradford stated he wanted to have more flexibility, he would like Gary Preston to be strictly in charge of Public Works and have reporting to him a Public Services Supervisor who would oversee public service technicians who would be multi- faceted and could be used where needed, and not be limited to strictly public works or recreation or water. A chart of a revised Recreation Department was presented. Village Manager Bradford explained that if a solution could not be worked out regarding the YMCA's funding concerns, staff would recommend to the Committee creation of a separate a Recreation Department, with a separate Department Head that would oversee Tequesta Park, Constitution Park, Village Green, all parks and pathways within the Village, as well as recreational services. The Recreation Department would include at least one multi-face-;ed public service technician who could be used where needed. The last work chart showed new field services organization, and the three departments, Public Wor:cs, Utilities, and Parks and Recreation. These people would submit work orders for whatever needed to be done to the Public Services Supervisor, who would then have seven public services technicians, all of which were already budgeted in various departments. The workers would benefit because their pay would be increased from 2-1/2% to 5% and they would be in control of obtaining additional certifications to increase their salary, ultimately being able to increase their salary up to 15% . Chair Capretta commented complete flexibility was not really necessary, and some workers would not want to learn new jobs; however, at least one flexible position was needed in each department. Village Manager Bradford agreed that not all employees would want this; and explained that currently these were all union positions. If this plan were adopted, the union might oppose it, although it could be entered as a point of contract negotiation's which would be 04/06/2000 15:00 4076941591 PAGE 10 FINANCg AND ADMINISTRATION =WITT=$ MEETING MINUTES March 22, 2000 Page 10 coming up in approximately two weeks, and might get approved by the union because all the other items they wanted would be tied up with this one. In any case, if this plan was adopted by the Village, and if the union did not approve it, it would eventually become effective through attrition. Village Manager Bradford reported that two of the workers were out on workers compensation and the Village had been told by the workers compensation specialist that they were never coming back, so if this plan were approved, immediately two job openings of Public Services Technicians would be announced, and two of the seven technicians would be gained. Some of the others would want the new positions, so slowly the program would go into effect. Chair Capretta commented if only two more wanted to do it, the Village would still be better off. Village Manager Bradford explained that even if some workers liked the idea but could never get the certificates, the Village would still pay them more just to have the flexibility. Mr_ Preston commented the people who reported to him had complained to him that they did not have the opportunity to get certificates in order to make more money. Mr. Grusauskas commented he had had experience in a similar system which had worked well. Co-Chair Walker made a motion to rec osm nd to the Village Council approval of the proposed reorganisation of portions of the Tequesta Workforce. Co-Chair Dalack seconded the motion. The vote on the motion was: Joseph N. Capretta - for Basil. E. Dalack - for Sharon Walker - for The motion was therefore passed and adopted. Wade Griest asked who would head the Recreation Department, to which Village Manager Bradford responded the YMCA had indicated they needed more money to continue with the Village and it was as yet unknown whether they would stay; however, if they did not stay then a Parks and Recreation Department would be established if approved by the Village Council. Mr. Bradford clarified other points regarding employees and the new organization plan for Mr. Griest. 04/06/2000 15:00 4076941591 PAGE 11 FINANCE AND ADMINISTRATION CCYr4XTTEE MEETING MINUTES March 22, 2000 Page 11 V. ANY OTHER MATTERS Chair Capretta asked the other members of the Committee to begin thinking about how to hire a replacement for Village Manager Bradford. Chair Capretta commented there were two ways the replacement could be found, either through efforts of the Village or by hiring a recruiting firm who would present the best candidates for interview. Chair Capretta asked the other members of the Committee to think about whether they wanted to interview the applicants one-on-one, or at a Village Council meeting, or at a Finance and Administration Committee meeting. Village Manager Bradford commented that 14 years ago a special Village Council meeting was held and the candidates sat at the table with all the Village Councilmembers. Chair Capretta questioned how public or how private the committee wanted the process to be, and asked them to think about it before the next Village Council meeting when he planned to bring it up. Village Manager Bradford commented either a head hunter could be hired or it could be done in-house. The head hunter would cost money, probably around $15,000, and it would take time. Village Manager Bradford recommended an in-house process, which would be faster and save money. Village Manager Bradford commented if the Committee voted today approving a recommendation to the full Council to proceed with an in-house process, he would place the ads, and if the full Council did not agree then the ads would be terminated and a head hunter would be hired. Co-Chair Dalack made a motion for the village Manager to proceed with advertising for a new Village Manager. Co- Chair Walker seconded the motion_ The vote on the motion was: Joseph N. Capretta - for Basil E. Dalack - for Sharon Walker - for The motion was therefore passed and adopted. • 04/06/2000 15:00 4076941591 PAGE 12 FINANCE AND ADMINISTRATION COWMITTEE MEETING MINUTES March 22, 2000 Page 12 VI. ADJOORZe ENT Co-Chair Dalack made a motion to adjourn the meeting. Co- Chair Walker seconded the motion. The vote on the motion was: Joseph N. Capretta - for Basil E. Dalack - for Sharon Walker - for The motion was therefore passed and adopted and the meeting was adjourned at 4:55 p.m. Respectfully submitted, Betty our Recording Secretary ATTEST: Joann Manganiello Village Clerk DATE APPROVED_