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HomeMy WebLinkAboutMinutes_Special Meeting_06/30/2010 MINUTES VILLAGE OF TEQUESTA SPECIAL COUNCIL MEETING MINUTES June 30, 2010 CALL TO ORDER AND ROLL CALL The meeting was called to order by Mayor Pat Watkins at 5:30 p.m. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mayor Pat Watkins, Vice Mayor Tom Paterno, Council Member Vince Arena, and Council Member Calvin Turnquest. Also in attendance were: Village Manager Michael R. Couzzo Jr., Village Clerk Lori McWilliams and Village Attorney Davis. Council Member Humpage was absent due to illness. APPROVAL OF AGENDA MOTION: Council Member Turnquest moved approval of the agenda as presented; seconded by Council Member Arena; motion carried unanimously 4 -0. Village Manager Couzzo asked to switch Items one and two in order to allow the Village Attorney to leave after the Cornerstone discussion; Council agreed. 2. Discussion and Possible Action Regarding Property 223 Village Blvd. Previously Known as Cornerstone Manager Couzzo explained the Cornerstone (Preserve) property had reverted back to the bank and was released for bids due on July 2, 2010. Attorney Davis noted a bid on the property did not bind the Village. In order to place a bid, he would have to draft a letter of intent with the price the Village was willing to pay. He noted the bank hoped to make $4.5 - $5 million. Mr. Couzzo commented on the recent code violations and felt the Village should enter the bidding but not at a cost of $4.5 million; he believed a more realistic cost would be $2 - $2.4 million and suggested offering $1.5 million. He suggested several use options such as boat or car storage. Mayor Watkins felt it was advantageous to have the piece of property that abutted the water department. MOTION: Council Member Tumquest moved to enter into a bid on the Cornerstone / Preserve property at a bid of $1.5 million and direct the Village Attorney to draft and execute the letter of intent, place $500,000 down in cash with the Village Attorney holding escrow, close within 30 days of accepting the offer which included the 30 days due diligence period, with bank to provide title policy, Vice -Mayor Patemo seconded, motion carried 4 -0. Minutes — Special Council Meeting — 6/30/10 Page 2 1. Budget Planning and Strategy Session Village Manager Couzzo reviewed the budget fund by fund and stated this budget reflected a decrease in revenues of approximately $140,000 and to balance the budget he suggested $250,000 be transferred from the Capital Improvement Fund. He stated the Village was receiving money back from the State to the General Fund where the funds were taken from originally and noted he was going to appeal to the State to return the $130,000 of the Village's expense. He stated the other $250,000 would come from an appropriation from Fund Balance, the Village's saving account. Manager Couzzo reviewed the department expenses which included the following decreases: Council, Manager, Human Resources, Clerk, Finance, Legal, General Government, Police Communications, Police Operations, Building Department, Civil Preparation, Fire (with the exception for the premium tax revenue), Public Works, and Debt Services. He stated there was a slight increase to the Police Department Administration budget due to the premium tax revenue being calculated in and $20,000 for computer system and system wide upgrades for licensing and software upgrades for the police vehicles. There was a slight increase in Leisure Services as a result of additional anticipated expenditures for special events. He stated overall the expenditures were 2% less and noted there would be no salary increases next year but advised of the possibility of an increase to health insurance costs, however, in 2011 there would be employee cost sharing to offset the increases. Ms. Abby Brennan, resident, commented on the Ad Valorem. Ms. Jody Forsythe, Director of Finance, explained according to the property appraiser, the top cities may have bottomed (Tequesta was in the top) and could possibly become even next year. Mayor Watkins hoped the Village could do something next year to relieve pressure on staff to avoid burnout. Village Manager Couzzo reviewed the staffing decreases which included the existing police captain which moved to part-time, Finance and Human Resources each moved one staff member to part time and the Community Development Director position had been eliminated. Council Member Arena believed Council would need to consider a tax increase next year. Village Manager Couzzo stated the Village should look at other avenues to generate revenue such as annexation and negotiation with Jupiter Inlet Colony. Council Member Turnquest stated Council needed to be careful about discussing tax increases when talking of annexation. Vice -Mayor Paterno disagreed with increased taxes and believed there were other areas to generate funds and suggested public safety as an option for additional cuts. Council Member Arena questioned the amount which would be returned from the current year budget. The Manager responded approximately $300,000. He noted the Village came in under Minutes — Special Council Meeting — 6/30/10 Page 3 budget and the Capital Improvement and Capital Project funds had no planned projects in the upcoming budget. He expressed the Water Fund showed an increase in revenues of approximately one point eight percent above 2009 figures and pointed out that appropriations may need to be adjusted for the Water Plant according to Councils decisions. Mayor Watkins noted her preference for small Village rate increases over one large one. Manager Couzzo replied that it may be wise to increase now in regards to her concern but voiced he did not feel increases should be done. Ms. Forsythe noted that approximately $200,000 had been lost to interest rates. Manager Couzzo reiterated the current reserves were significant at over four million and the Village was going into a season that historically generated greater revenue. He noted the third train would also create revenue. Vice Mayor Paterno asked if the additional train offered costs savings. Mr. Fallon replied a small amount and noted that the plant would operate two of the three trains at all times with the third used as backup. Manager Couzzo pointed out that the Village had not increased water rates for 12 years and had a seven percent increase two years ago. Mr. Fallon suggested an alternate option that would affect heavy water users' rates to generate additional returns. Manager Couzzo stated the rates could always be adjusted and, as the Utility Director, recommended no increase. Ms. JoAnn Forsythe, Director of Finance, felt if Council was contemplating an increase it may be better implemented before an annexation instead of after. Manager Couzzo suggested a rate analysis be done every two years instead of every five years. Manager Couzzo noted administration, production and debt service items in the budget and noted a bit more was added to cover necessities and noted if the funds were not used they would go back into the budget. He referenced one Capital item which was a truck purchase and expressed the total expenditures had decreased approximately $134,000 over the original budget. Vice Mayor Paterno questioned the $460,000 set aside in Water, (which he believed would otherwise be in the General Fund) to pay the Manager and The Director of Finance. Manager Couzzo replied that Council could contract the position out and he believed that option would cost significantly more. He noted the Village had an obligation to recover that figure so that the Ad Valorem and other revenues on the general side where not affected. Manager Couzzo added that the costs should not be paid through property costs. Mr. Russell White, Public Services Manager, questioned the water budget and a possible automatic increase each October. Manager Couzzo responded that it had an index at one point eight percent. Vice Mayor Paterno pointed out that an annexation in the Village would bring on a loss of 25% regarding the water bill. Manager Couzzo explained the figures associated with annexation. Minutes — Special Council Meeting — 6/30/10 Page 4 Ms. Joanne Forsythe noted the budget figures for Refuge and Recycling had a very small percentage increase over last year. Manager Couzzo stated the Waste budget was supplemented each year with the Village's Reserve fund to avoid rate increases and pointed out that Ms. Forsythe had originally recommended a four percent increase to avoid additional depletion of Reserves and had recently worked the increase down to two percent. Manager Couzzo felt the two remaining years on the waste contract and the Villages cash made for a favorable situation. Ms. Forsythe noted franchise charges were returned to customers lowering their fee six percent. She explained her calculation of Waste Management Revenues which was bringing in just enough to survive, but noted the billing discrepancy which caused the appearance of extra revenue was discovered and corrected and would bring them back to breaking even. Manager Couzzo stated two percent increase would be implemented but pointed out it was a very small amount. Council Member Arena explained storm waters grants money which was available through a committee he was involved with. Manager Couzzo referenced a significant difference with the Storm Water budget and the proposal to redo Tequesta's dry drainage area at the expense of $300,000. He offered suggestions with scheduling the project to coincide with the possible grant monies. Manager Couzzo stated the Village had the funding and 25% of the reserve fund would be utilized. Ms. Forsythe asked the date of Storm Water's last increase. Mr. White replied 10 years. Vice Mayor Paterno asked if the road repair could wait until next year. Mr. White replied the repair could be held off but felt current pricing was good on that type of project. Manager Couzzo expressed his preference with the road repairs to correspond with the completed bridge. Council Member Arena replied it would be available for next year and suggested working with Mr. White and beginning the process. Manager Couzzo referred to the General Fund Revenues. Vice Mayor Paterno referenced past and present figures regarding the building department and questioned the $25,000 increase. Manager Couzzo stated the turn in the economy and recent rate approvals through Council and the bridge being closed affected several figures. He felt the figures would be positive going forward. Vice Mayor Paterno questioned special events figures. Manager Couzzo responded with several Park and Recreation events which generated revenue. Vice Mayor Paterno asked about donations and questioned future funding. Council Member Arena responded that donations were received and sponsorships sold reagrding events. Manager Couzzo stated nothing had been budgeted for Aid to Community Organizations which also helped keep the budget down. Manager Couzzo referenced Human Resource and Finance had a full time positions reduced to part time. He suggested buying back employees hours at a reduced rate as a costs saving Minutes — Special Council Meeting — 6/30/10 Page 5 initiative. Manager Couzzo believed Council should focus on training as it was important. Ms. Forsythe stated that employees were tired and she believed they would like the option of working four ten hour days. Manager Couzzo replied that that was an option she could offer as a department head. Vice Mayor Paterno felt the Village was too small to cut employees schedules. Ms. Forsythe expressed closing the Village and adjusting the hours may offer residents longer hours. Clerk Lori McWilliams offered insight. Clerk McWilliams noted that her part time employee was affected by the recent decision to move to a third party administrator. Manager Couzzo added that the Pension Boards had utilized Village employees which were not sufficiently knowledgeable in the pension field and believed the responsibility should be paid by pension boards. Council Member Turnquest left the meeting. Manager Couzzo explained the legal department had been reduced approximately 12 %. Mayor Watkins felt that the Village had hired Attorney Trela White and voiced her preference that Ms. White attend regular Council meetings. Vice Mayor Paterno supported the Mayor. Manager Couzzo suggested each Council Member call Ms. White and voice their thoughts. Manager Couzzo referenced the Special Events expenditures in the General Government Fund and explained that events throughout the year affected this figure. Vice Mayor Paterno questioned the comparison between General Government and Leisure Services. Mayor Watkins felt the residents enjoyed the Village events and noted non residents were charged and paying for the events. Manager Couzzo stated that Leisure Services were adding more activities which increased their budget but noted the activities would generate revenue. He pointed out the large increase of residents using the services over the years. Manager Couzzo suggested $29,000 remain in the Contingency Fund which would assist with the appropriated fund balance. Manager Couzzo explained savings to the Police budget through the Chiefs salary while he was on an extended leave. He discussed cost affective options for the future and stated the budget was awaiting Union negotiations. He also explained the Village would cut back on overtime once the bridge was open. Council Member Arena questioned the necessity of the Police Detectives department car. Manager Couzzo stated that it was a perk of the position which the Police Chief justified but Council could modify if they felt it was necessary. Council Member Arena felt the money could be put to better use. Vice Mayor Paterno supported Council Member Arena. Manager Couzzo suggested the car be funded for six months and allow the Chief to return and address it. Minutes — Special Council Meeting — 6/30/10 Page 6 Vice Mayor Paterno asked if the Captain's position could be reduced. Manager Couzzo replied the position would be funded for a three day schedule and the department staff had been reduced over the past years. Vice Mayor Paterno felt the Village could save using civilians. Manager Couzzo confirmed Finance would fund the detective's car for six months. Vice Mayor Paterno asked Manager Couzzo to report the detective's weekly mileage. Manager Couzzo explained the Fire budget. He noted overtime would be down and operating costs could not be cut. He noted an aging fire engine which should be in the budget was not and estimated at $600,000 to replace. Manager Couzzo referenced personnel and a cut to overtime reduced greatly by intern fire fighters but noted the overtime "specialized training" could not be avoided. He voiced his concern for the interns not receiving insurance. He added that Pension contributions were up because employees were beginning to become situated to retire. Mayor Watkins asked the Manager to gather some comparisons regarding retirement costs. Manager Couzzo stated if a position could be eliminated it would reduce budget costs. Council Member Arena questioned the Fire Departments budget paying for inspections and the Village hiring an inspector which he believed the Village performed a small number of inspections. He felt the Village should not look at letting go of a regular employee to keep a sub contractor. Manager Couzzo replied that there were regulations the Village must adhere to regarding fire staffing and the part time sub contractor was only covering what regular staff could not. Council recessed from 9:04 p.m. until 9:06 p.m. Manager Couzzo explained the Village had an employee from fire which may be leaving and confirmed the position would not be replaced. He felt a great deal had been done with salary negotiations and noted Fire cooperated significantly. Manager Couzzo noted nothing had been funded for annexation or strategic planning ANY OTHER MATTERS Council Member Arena stated he had spoken with South Florida Water Management (SFWM) and offered Council literature regarding free services offered through the SFWM. He asked to place a petition with many signatures supporting sidewalks on Cypress Drive on the July Agenda. Manager Couzzo replied it could go on the Agenda as a discussion item to begin the process. Minutes — Special Council Meeting — 6/30/10 Page 7 Manager Couzzo expressed that Council Member Turnquest would support the purchase of I Pads for Council agendas to assist the Village with going green and the item would be placed on the next regular agenda. Mayor Watkins did not support the costs. Vice Mayor Paterno expressed he was comfortable with using his own laptop. Mayor Watkins supported moving forward with annexations to avoid the Village raising rates. Manager Couzzo responded there were many variables and Council needed to discuss it further. Manager Couzzo stated it would be placed on the July Agenda. Vice Mayor Paterno believed the annexation agreement read, if an area desired Tequesta water Tequesta could automatically annex the area and asked the Manager to address the Water Agreement. Manager Couzzo read the verbiage and believed the wording was poor. ADJOURNMENT MOTION Council Member Arena moved to adjourn; seconded by Vice Mayor Paterno; the motion to adjourn carried unanimously 3 -0; therefore, the meeting was adjourned at 9:31 p.m. Respectfully submitted, Lori McWilliams, MMC, Village Clerk Note These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the Village Clerk. All referenced attachments are on file in the Village Clerk's office.