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HomeMy WebLinkAboutMinutes_Workshop_06/22/2010 MINUTES VILLAGE OF TEQUESTA BUDGET STRATEGY WORKSHOP MINUTES JUNE 22, 2010 CALL TO ORDER AND ROLL CALL The meeting was called to order by Mayor Pat Watkins at 8:01 a.m. A roll call was taken by the Village Clerk Lori McWilliams. Present were: Mayor Pat Watkins, Vice -Mayor Tom Paterno Council Member Vince Arena, Council Member Jim Humpage, and Council Member Calvin Turnquest. Also in attendance were: Village Manager Michael R. Couzzo Jr., Attorney Keith Davis, Village Clerk Lori McWilliams and Department Heads. ANY OTHER MATTERS Manager Couzzo stated that the bridge contractor had requested work be allowed the next two nights and noted the drying process could be affected by the extreme heat experienced during the day. Consensus of Council agreed to allow two nights of work. Manager Couzzo noted that the bridge contractor had to cut his company's overtime hours. He offered an alternative work schedule and the possibility of the Village paying for any overtime necessary to assure the bridge opening at the preferred time. He established costs and noted the original contracts early finish incentive (originally figured at up to $180,000) would be null and void with the late penalty clause remaining if this was approved. Manager Couzzo stated the State was not on board previously with this option, but a representative would confer with their office and get back to the Village with their decision. Manager Couzzo believed the option could assist with the schedule and possibly save the Village by eliminating the incentive monies. Mayor Watkins commented that school would begin August 18, 2010 and bus routes would be difficult to change. Manager Couzzo felt the overtime option would help to expedite the project so not to affect the bus route. Attorney Keith Davis stated a Letter of Understanding could be offered if council consensus was obtained. Vice Mayor Paterno asked if there would be a guarantee for a specific number of workers to be present on the job. if the Village was paying them. Manager Couzzo replied that the contractor was working with the Village on all options. Manager Couzzo confirmed that the bridge was at a stage were curiosity may bring people into areas the Village had posted as keep out; however this was an area for the contractor to monitor. Council Member Humpage voiced his concern with monitoring workers hours if the Village became responsible for paying overtime. Minutes — Workshop 6/22/10 Page 2 Manager Couzzo believed that the project had taken additional Village staff time which he felt was advantageous in expediting the job. Mayor Watkins advised that the Village had done all that it could do to accelerate the bridge project and that it was in the control of the State. Vice Mayor Paterno expressed his concern that it appeared the contractor was going against the original contract and being paid to come in late. Mayor Watkins responded that everything possible should be done to insure the bridge came in on time. Consensus of Council did not agree. 1. Discussion on Annexation Council Member Humpage offered literature explaining projected revenue and what subdivisions would expect from the Village in order to cooperate with the Village on annexation and noted four areas he had researched. Vice Mayor Paterno asked the Attorney if taxes could be prorated over three years. Attorney Davis responded that it was not a preferred method. Council Member Turnquest felt that incentives could be offered. Council Member Humpage stated there were additional savings and revenue figures not listed in his handout. Manager Couzzo suggested the intension for today was to clarify to what degree the Village would fund annexation projects. He felt a thorough analysis should be prepared. Mayor Watkins questioned voluntary annexation and voiced her concern with the appearance of force being used. Chief Weinand noted past mistakes with annexation and offered suggestions. Council Member Humpage suggested meeting with each subdivision separately. Manager Couzzo felt there were too many variables and the Village would need to be patient. He stated annexation could go on the July agenda, but pointed out that it had not been budgeted in the present budget. Council Member Humpage stated the intention was not to be aggressive but to have the transaction desired by all involved. Frank D'Ambra expressed his opinion on what strategies would be accepted by residents. Manager Couzzo suggested not offering projections too far into the future but to offer the Villages track record and focus on what was compatible for Tequesta. Vice Mayor Paterno added that strategic planning while choosing areas for annexation could be significant. Mayor Watkins suggested putting together a formal discussion for the next workshop. Manager Couzzo replied that a full assessment and many discussions would need to occur. Vice Mayor Paterno suggested looking into commercial property which could be obtained from the County. Manager Couzzo replied that type of inquiry could be done. Council Member Humpage stated that he had met with a person from Waterway Village to get an idea of what they were looking for and their biggest issue was drainage and felt they were open to annexation. Minutes — Workshop 6/22/10 Page 3 Manager Couzzo stated annexation costs could be $100,000 to $200,000 with the process lasting three to five years. Council Member Arena felt a meeting to discuss specifics should be scheduled. Council Member Humpage believed County figures should be obtained before a meeting was held. Mayor Watkins stated if Council Consensus was not to budget for annexation there would be no need to hold a meeting. Council Member Humpage felt Waterway Village should be the first annexed. 2. Discussion on Paradise Park Acquisition Manager Couzzo offered history on the Paradise Park acquisition and stated Mr. Zuccarelli would be obtaining an appraisal since he believed the property was worth up to 20% more than the 1.8 million appraised value on the recent evaluation obtained by the Village. Manager Couzzo believed the Park would be an asset to the Village but voiced his concern with the expenses associated with the purchase. Vice Mayor Paterno agreed that it would be a great acquisition. Mayor Watkins felt the Cornerstone property would be more beneficial for the Village and did not feel the Village could afford both. Manager Couzzo stated Mr. Zuccarelli may be more interested in an annuity based alternative regarding financing. Vice Mayor Paterno believed the acquisition would be positive in the long term. 3. Discussion on Status of Cornerstone Property Manager Couzzo expressed that the Village was awaiting a recorded deed to confirm that the foreclosure was complete and stated a portion of the property could be acquired with the Water Department Revenues. Fire Chief Weinand pointed out that he had spoken to two interested parties which both inquired on the Village's interest in the property. Mayor Watkins expressed her preference of the Cornerstone property over Paradise Park. Vice Mayor Paterno suggested offering Mr. Zuccarelli storage at the water plant as part of the park negotiations. Manager Couzzo pointed out that there could be potential environmental impact and other issues to work out if storage was offered. Vice Mayor Paterno suggested Tequesta Park as another possible storage option. Mr. Roy Fallon, Chief Plant Operator, noted that the property had been looked at previously for townhomes and there was concern with the location. Vice Mayor Paterno believed that the Paradise Park property was non - conforming and a financial drain on the owner Mr. Zuccarelli. Minutes — Workshop 6/22/10 Page 4 4. Discussion of Future Infrastructure and Capital Projects Manager Couzzo expressed that the building of Parks and Recreation would have a need for Capital improvements in the future and referred to the architectural drawings that had been prepared previously to match the existing municipal buildings. 8. Discussion on Bids received on Water Treatment Plant Expansion Manager Couzzo noted that bids had come in for the Water Plant better than expected at two point three million. He voiced his optimism that the bid would be awarded in July and did not believe the Village would need any additional expansions. Council Member Arena questioned if the plant had any other needs. Mr. Roy Fallon, Chief Plant Operator, responded that they did not and that the Water Plants computers were set up for the addition and needed no major adjustments. He also noted that if the plant was 100% RO (Reverse Osmosis) it would require poly phosphates to assist with corrosive properties which would be an additional cost, and to avoid that cost the Village used a water blend. Manager Couzzo noted a tank at the Public Works facility may need to be rehabilitated in the future. Council Member Humpage questioned if the sidewalks on Cypress Drive were budgeted for. Mayor Watkins stated that Mr. Hackett was to get back to her and Manager Couzzo several months ago regarding the sidewalks and nothing had been heard up to this point. Manager COUZZ0 stated the Village had chased this vigorously and may need to address it again. Mayor Watkins inquired about the Amerigas tank by the Water Plant and if the Village could request it be moved. Manager Couzzo responded yes and offered to research it. 7. Discussion of Old Railroad Station Property Attorney Keith Davis confirmed that attempts to serve the property owner's, which were in Maryland were being made and suggested a private processor be hired if success was not achieved soon. Manager Couzzo suggested moving forward with a private server. 6. Discussion of Bridge Dedication Celebration and Events Manager Couzzo noted the dedication was planned for October 2 nd but no specifics had been scheduled. Mayor Watkins referred to two separate dates, one when the Bridge opens and a formal celebration and proposed Ms. Charlotte Mathison who was 103 be the first to go over the bridge and /or Village kids riding their bikes be included. Manager Couzzo suggested putting together a Committee to begin planning the formal event. Minutes — Workshop 6/22/10 Page 5 Manager Couzzo suggested limiting weight loads be discussed on an upcoming agenda and explained the limiting would be simpler by axles versus weight. Mayor Watkins did not support prohibiting Waste Management access to the bridge. Manager Couzzo stated a resolution should be done with Councils decision. Council Member Turnquest suggested allowing vehicles which were contracted with the Village. Council Member Humpage suggested utilizing permits to monitor vehicles. Manager Couzzo stated draft language and a resolution would be provided for Council to evaluate. 5. Discussion of Financial Forecasting and Planning Manager Couzzo expressed that the Village had completed and paid for several large projects and were in good shape going forward. He noted annexations would be costly and pointed out that the current Fire Rescue contract with Jupiter Inlet Colony would expire in three years and most likely would increase the Villages revenues generously. Manager Couzzo referenced the contract between the Village and Palm Beach County expired in two years and there was a chance of expanding the service level which would also increase revenue. He also stated other Fire Rescue revenue alternatives in the near future including Jupiter. Ms. Joanne Forsythe, Finance Director noted the millage and water rates would remain unchanged. She pointed out that there was not a large amount in reserves which previously assisted with interest revenue and utilities could not absorb costs such as property purchases or a plant expansion without raising rates. She felt raising rates 7% may barely be adequate to get by while postponing would trigger a larger increase. Ms. Forsythe stated significant expenses such as a new pumper for fire and road improvements would be needed in the not so distant future. Manager Couzzo advised that the Village could possibly sustain long term without expense g g p b sus a o e tout ex a Y 9 P increases if items such as annexation began to generate positive revenues. He suggested Council would need to be more frugal with the next five years than they had been with the last five. He emphasized on the Village saving approximately $600,000 on the projected figure for the water plant bids and noted unplanned expenses in the present budget year. Manager Couzzo emphasized that other areas would need to be addressed such as staffing issue. Manager Couzzo suggested not going further than five years with the strategic plan. Mr. Frank D'Ambra added that the planning would help to navigate changes and offer options when the unexpected environmental changes came about with the option to update it. Manager Couzzo stated important decisions were coming and the Village was in a good position. Minutes — Workshop 6/22/10 Page 6 Council Member Arena inquired about options regarding limiting larger trucks to create revenue with the new bridge. Manager Couzzo replied that limiting the access and implemented permit fees could possibly be done for specialized equipment. Mayor Watkins felt there was no logic in building a new, strong bridge and then limiting its use. Council Member Humpage considered restricting use as pushing away possible annexations by inconveniencing residents with home projects and deliveries. Mayor Watkins stated the action would be viewed as exclusionary and normal home items should be acceptable. Vice Mayor Paterno inquired about expectation on cost increases to run the Village. Ms. Forsythe responded there would be no salary increases and Council could set appointments to go over their specific budget questions. Vice Mayor Paterno noted the property appraiser predicted municipality's rates to decrease the same next year as this year and felt options for the Village would be cutting services or increasing taxes. Manager Couzzo suggested chasing the revenue side aggressively and stated not much more could be cut from the budget. Vice Mayor Paterno noted a cut of two point one percent could bring the Village even. Manager Couzzo reiterated that budgets did not offer much room for additional cuts. Vice Mayor Paterno felt there were additional areas that could be cut including Smoke Signals and the upcoming bridge party and felt a small group of complaints were spending Village funds while the remainder of residents were fine doing without. Council Member Arena replied that there were many that asked to have Smoke Signals back in the budget and he only recalled one resident that did not. Manager Couzzo felt good news was welcomed by the residents and the Village enjoyed the paper and felt it was an investment in the community. Council Member Arena explained that Publix: was giving out copies regularly which helped save on postage. Merlene Reid, Human Resource Director referred to a staff survey and that 40 percent returned with dramatic increase in complaints from the previous year that there were not enough resources to do their jobs or the department is understaffed. Mayor Watkins responded that employees had dealt with cut backs along with larger workloads which had brought down Village moral. Council Member Arena suggested asking departments to cut two percent per year to place back in the general fund as a goal. Chief Weinand stated the five percent requested cut back during the last two budgets was unattainable in his budget and felt he could not cut any more. Manager Couzzo replied department heads just had no more to give and it may be time to start putting money back in the business. Chief Weinand stated he was doing four jobs now and would retire in four years. Vice Mayor Paterno believed the Village needed six to seven percent growth and agreed it was attainable through annexation and the Villages largest problem was the escalating serious staffing issues. Mayor Watkins responded that these were the same people that have bent over backwards to assist the Village in difficult times and were now at a breaking point. Council Minutes — Workshop 6/22/10 Page T Member Humpage supported strategic planning and offered research suggesting that Waterway Village would be best area to annex and believed it could be accomplished in a twelve month period. He stated he would attend their July meeting. Council Member Humpage pointed out that the Village had responded to unincorporated calls and assisted the Sheriff over 260 times in the past six months. He asked if a log could be developed to assist him with challenging and possibly recovering a portion of past expenses paid to the Sheriff. Manager Couzzo agreed and added that the Sheriffs' contract with the Village was up in two years. ANY OTHER MATTERS Council Member Arena referred to a piece of property on the north east corner of the bridge which may be available for the Village to purchase. ADJOURNMENT Upon motion by Council Member Humpage, seconded by Council Member Turnquest, and unanimously carried, the meeting was adjourned at 11:13 p.m. Respectfully submitted, Y GI, fn fttD (.LI Lori McWilliams, MMC Village Clerk I I