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HomeMy WebLinkAboutMinutes_Workshop_08/30/2007MINUTES VILLAGE OF TEQUESTA VILLAGE COUNCIL BUDGET WORKSHOP TUESDAY, AUGUST 30, 2007 Village Council Chambers 345 Tequesta Drive 9:06 a.m. I. Call to Order and Roll Call The Village of Tequesta Village Council held a Village Council Workshop meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Tuesday, August 30, 2007. The meeting was called to order by Mayor Jim Humpage at 9:06 a.m. A roll call was taken by Village Clerk Lori McWilliams. Present were: Mayor Jim Humpage, Vice Mayor Pat Watkins, Council Member Paterno, Council Member Amero and Council Member Turnquest. Also in attendance were: Village Manager Michael R. Couzzo, Jr., Village Clerk Lori McWilliams and department heads. II Approval of Agenda MOTION: -Vice-Mayor Watkins moved to approve the agenda as presented; motion seconded by Council Member Turnquest; motion unanimously carried 5-0. 1) Review of Proposed 2007/2008 Mayor Humpage started the discussion with the Revenue Issues questioned previously; He stated that Council Member Amero was concerned with the lost cable revenue. Council Member Amero stated he spoke to Ms. Jody Forsythe, Director of Finance and was comfortable with her explanation on the issue and stated Ms. Forsythe reported there was no loss. Mayor Humpage then referred to the question concerning the accuracy of the State audit and affirmed that the Village could rely on the State audit and reminded everyone that the State would also be audited. Mayor Humpage asked the Village Manager to address the Community Development budget issue. Manager Couzzo referred to the Permit Fees figure which was budgeted at $400,000 and stated since Council felt that was a high expectation; he and Ms. Catherine Harding, Director of Community Development reviewed it and recommended decreasing the figure by 10% to $360,000. He stated if the revenues surpassed the figure that would be a good thing. Mayor Humpage commented that the Village had not heard back from the Inlet Colony so that would have to be discussed at a later time. Manager Couzzo noted Council Member Amero's previous comments on doing some further examination on the accuracy of the rates. He stated that additional checking was Minutes-Village Council Workshop 08/30/07 Page 2 done on the Franchise Fees from FPL and approximately $25,000 was found in the revenue bond to the advantage of the Village. Ms. Jody Forsythe, Director of Finance, explained that her department had reviewed the figure using a seven year average, and the figure had been confirmed with FPL representatives. Manager Couzzo commented on the Water Fund and stated a number was not put in for Capital Connection charges for residential customers and an estimate of $18,000 was made as an anticipated figure for change outs which would increase revenues and a figure for Capital Connection charges for developers was not plugged, but would do so if Council directed. He stated there were two significant developments coming in the next year and they would balance off the budget at that time instead of having to do expectation now and have problems if the developer's decides to hold off. Council Member Paterno felt a separate fund restricted for Capital Connection Fees should be established for future maintenance; he stated the Village would have serious debt problems in the future if money was not ear marked. Council Member Amero agreed and thought designating a specific amount to be set aside now would be beneficial later. Manager Couzzo concurred and stated Capital improvements of future connection charges, residential and commercial should be designated to a fund. In addition, Council could designate part or all of the $500,000 in the future, along with applying for grants. Ms. Forsythe explained that finance was permitted to take out the debt service because it was originally for the expansion of the plant. She stated it was a requirement of the bond to set aside money for the Capital connection and noted the majority of the time there was no need to set aside monies because of the principal and interest. She stated regardless of the bond requirements Finance was designating a separate account to avoid confusion. Manager Couzzo explained the actual improvements may far exceed the requirements as far as reserves; therefore, the separate accounts would be good for clarification. Vice Mayor Watkins asked if items such as new membranes, which she believed were around $100,000 to replace, would come out of Capital improvements. Manager Couzzo replied yes. Council Member Paterno felt if new people were brought on, the Village would not be able to keep up with the usage, and the money would not be available to upgrade the system. He felt all Capital money for operating and maintenance was being combined in accounts and utilized. Manager Couzzo stated not all the money was being used; and the benefits from being off the purchase agreement with Jupiter would be vast. He stated the Village was close to diminished returns because they had a "pay cash" mentality which was excellent and had put them ahead. Council Member Paterno suggested lowering the rates. Manager Couzzo replied that was something that could be done. Mayor Humpage inquired if the Village was taking 100% of the connection charges and Manager Couzzo replied yes, commercial and residential. Ms. Forsythe noted the bond required 5% to be set aside for renewal and replacement in the water fund to protect their investors. Manager Couzzo explained the Village needed close to three million to do the third train and he would like to see grant money obtained for at least half. Council Member Paterno inquired about the future of the money that was set aside and how much would be restricted. Discussion ensued. 2 Minutes-Village Council Workshop 08/30/07 Page 3 Manager Couzzo commented on expenditures and a question from Council Member Amero on the Attorney cost of legal services. He noted the original budgeted figure of $130,000 and reported after recalculating the new projection figure was $96,000. He added this was a 25% decrease and noted it was very difficult to project future needs of Attorney services. He felt comfortable projecting $8,000 per month or less. Vice Mayor Watkins asked if the figure included the possibility of future issues with the Dalack case. Manager Couzzo stated he felt optimistic there would be no future debt accumulation on the Dalack case; therefore did not budget for that. Vice Mayor Watkins expressed she would rather have the numbers figured in than to have the Manager come back and ask for additional funds later. Manager Couzzo reiterated it was very difficult to predict legal needs with accuracy. Council Member Amero noted that the Attorney assigned to the Village was not a Municipal Attorney and his frustration with the attorney's lack of knowledge. He felt the Village was double charged because of many questions which could not be answered on the spot, and felt the Attorney should review files before attending meetings. He added the bill shows an extreme amount of file reviews, and the Village was paying for that. Mayor Humpage agreed and added the firm's contract comes up for review in October. Vice Mayor Watkins agreed and stated her frustration pertaining to specific items which were questioned numerous times and the Attorney still had to review them for answers. Manager Couzzo suggested questioning the firm about the prospect of an Attorney with municipal knowledge. Council Member Amero favored looking at all the options. Manager Couzzo noted it was a goal not to use Attorney's that much in the future and he admired Council for commending management at a previous workshop on trusting their judgment. Council Member Turnquest stated there was no reason to go back to the same firm; he felt they did the Village a great injustice assigning an Attorney which was not extensively experienced in municipalities. Mayor Humpage stated Council was also to blame since they had asked to replace Mr. Randolph with Mr. Hawkins. He commented he also did not agree with the procedures in which Mr. Hawkins was billing the Village. Manager Couzzo confirmed he would start the procedure for a legal RFP and would analyze whoever was hired quarterly and he would report all Attorney involvement to Council. Council Member Paterno questioned Council receiving copies of Manager Couzzo's contract and explained he would like to discuss it in October. Mayor Humpage stated that the contract being discussed was Mr. Hawkins which Council knew was time sensitive as well. Manager Couzzo stated he spoke to Mr. Hawkins recently and Mr. Hawkins stated he was getting the contract for Council. Manager Couzzo confirmed he would have it electronically sent to Council from the Village today. Council Member Paterno questioned the personnel budget and the legal figure of $70,000 to date. Manager Couzzo stated the figure was budgeted at $46,000 and he would like to keep the figure down, but there were three contracts to negotiate, and two arbitrations, but felt the Village could handle more of that in the future. Ms. Merlene Reid, Director of Human Resources stated there were items such as the Fire Department going Union which required the attention of the Attorney. Council Member 3 Minutes-Village Council Workshop 08/30/07 Page 4 Paterno asked if while interviewing new Attorney's would Council focus on a firm with municipality knowledge and contract negotiating experience. Manager Couzzo noted that it might be difficult to find a firm with municipal, legal and labor experience. Vice Mayor Watkins explained the Village had used multiple firms in the past and did not feel the Village should be locked into one firm and stated Manager Couzzo found terrific Attorney's previously for different issues and she had confidence it would be the same in the future. Mayor Humpage felt the Village should hire a good Municipal Attorney and not focus on the possibilities of future needs at this time. Council Member Paterno felt there was duplication of services in regards to multiple Attorneys reviewing issues and double charging the Village. Manager Couzzo felt an Attorney in the firm should be hired not the firm. At 9:45 am Mayor Humpage stated he needed to go to Public Safety; but would return to the meeting as soon as possible. Manager Couzzo explained that a review by all departments had set focus on training, automation and upgrades. He stated they had met with Argent, Onbase and IT consultants, and determined to increase the expected expenditures for the Police Communication by $7,000 to provide for upgrades in the records management software. He mentioned an Onbase representative recommended the purchase of an additional scanner, to expand on what the Village already had; and to utilize the five licenses already held. Vice Mayor Watkins asked Ms. Merlene Reid, Director of Human Resources if this purchase would be helpful to her department. Ms. Reid responded yes, and explained it was a document management system, and would be beneficial for all departments, but she stated it was not what she initially wanted for the Human Resource Department. Council Member Paterno questioned if the new scanner would go in Village Hall or the Police Department. Ms. Lori McWilliams, Village Clerk, stated the Police Department had a scanner but would need to purchase a license in order to utilize it with the Onbase system. She stated the Human Resource Department would be purchasing a scanner out of the present budget and she would like to see next year's budget allow for the purchase of a scanner for the Finance Department. Ms. Reid commented there were different size scanners for individual department needs. Ms McWilliams explained the system would be most beneficial if each department utilized it by first inputting their documents; then it would take time to build on the foundation of the system; she suggested adding the workflow module as the next step. Ms McWilliams added that Mr. Glenn Walter strongly suggested getting all the departments online utilizing what was already in place. Vice Mayor Watkins inquired about a software program referenced previously by Ms. Reid specifically for Human Resources. Ms. Reid responded this was not that program. Vice Mayor Watkins asked about the training. Manager responded the Village was working with Consultants Manager Couzzo referenced bringing on a full time IT person at a budgeted salary figure of approximately $75,000 and adding benefits the figure would be around $90,000 to $110,000. He stated the Village was now paying approximately $33,000 4 Minutes-Village Council Workshop 08/30/07 Page 5 annually for support. Manager Couzzo explained a full time IT person would be a great asset to the Village, would cut down on Internet down time and would be available to train staff. He added this would net out somewhere around $70,000 in the budget. He also stated it was very difficult to get any type of long term commitment from IT employees because they were so valuable in the market. Vice Mayor Watkins asked if it was worth spending three times the amount to have someone on staff full time. Council Member Paterno asked if an analysis of downtime had been done. Manager Couzzo stated a full analysis had not been done. Council Member Paterno stated there were hidden costs when the email went down and employees had to work at a slower pace. Manager Couzzo stated the funding could be done now or half way through the year; then an analysis could be done and the budget could be amended. Council Member Turnquest agreed hiring a full time IT person would be a benefit to the Village. Vice Mayor Watkins stated she was concerned with the differential but could be convinced if she could see proof of the necessity. Council Member Paterno felt it was a good idea and felt there was savings in areas that could be out sourced; he felt the figure of $223,000 for transportation services in Public Safety for Fire could be outsourced. Vice Mayor Watkins stated there was a consensus to look at hiring an IT person. Manager Couzzo stated there was a possible opportunity to hire someone that was familiar with the Village's system and felt the timing was right to make the move. Manager Couzzo referenced Ms. Catherine Harding, Director of Community Development, adding $5,000 for an assistant office manager in her department with the goal of improving customer service. Council Member Paterno asked if that meant added personnel. Ms. Harding explained the department needed restructuring and insured the number of employees would not change. Council Member Amero referred to the life Insurance premiums increasing approximately 20% and asked if the Village had looked into changing to HSA; he affirmed he was familiar with HSA and confirmed his company was experiencing savings since they switched to the particular Insurance carrier. Ms. Merlene Reid, Director of Human Resources remarked the Village had been comparing other carriers for some time. Manager Couzzo responded that they were aware of the over nine percent increase and explained the investigations for a new insurer was ongoing, but the timing; at present, was not right for a change. He stated that negotiations had to also be done with the Unions. Council Member Paterno felt this had been talked about for a length of time and they should be more aggressive with the proposed changes. Manager Couzzo commented that the Village had asked for Insurance figures in April and May and the response was that figures would not be formulated until July, so the Village was not getting figures until August. Council Member Paterno stated there were State stipulations stating if there were a financial crisis the Village could stipulate that. Vice Mayor Watkins felt with the time pressures Council could declare their intentions of doing better were in their forecast of the new cycle. Manager Couzzo asked what that 5 Minutes-Village Council Workshop 08/30/07 Page 6 would imply; saving money and providing less of a benefit to the employees and impacting moral. Vice Mayor Watkins felt that a great plan that offered potential savings was appealing to the Village. Manager Couzzo stated that was what was offered at present. Council Member Paterno felt that increases were out of hand and the cause of residents to lose their homes because they could not afford the taxes and insurance. Ms. Reid stated that the Village had a superior plan when compared to HAS and felt there would be repercussions from changing the benefits to employees. Manager Couzzo added that the Village had even looked into self insuring in the past but felt that was something the Village did not want to gamble with. Council Member Amero stated after talking to a representative from Slaton Insurance he understood more companies were offering options because of the rising cost. Ms. Reid explained that the Village was not large enough to offer multiple choices and felt Cigna was a great attraction for potential employees. Council Member Amero stated his company offered HSA as a choice and employees were signing up for the savings. Manager Couzzo noted 80 employees were insured with the POS plan from Cigna at present; he stated if a less expensive plan was offered and half of the employees changed; now the premium for the original POS plan would go up because the discount would not be offered as it was to the larger group. He stated after talking to staff the consensus was that the plan was a good plan and had been reduced in the past by having the employee pay more of the co-pay. Council Member Amero asked if this could be discussed at the next meeting. Manager Couzzo explained this was a lot to analyze and negotiations with the Unions would also have to be done. Ms. Reid stated last year's proposed increase of 6% was eliminated because of the changes including co-pays. Council Member Paterno asked if the Village could give an allowance, then the employee could decide what they wanted for their family and have to come up with the difference. Ms. Jody Forsythe, Director of Finance, explained because it would be similar to a flexible spending account; depending on the employees there could be money left over to utilize as they wish. Manager Couzzo stated there was less than a month to announce any changes otherwise the plan would lock with no changes for another year. Council Member Turnquest felt offering employees cash was asking for trouble. Manager Couzzo stated this was a National crisis with 47 million people uninsured in the United States; he felt Village employees would be tempted to take the cash and should be made to take at least a minimum insurance. Ms. Forsythe explained there were IRS ramifications for changes like this; she noted this was beyond Human Resources and there were firms that could come in and offer the Village different products and assist in the changes. Vice Mayor Watkins stated a decision needed to be made to update employees. Manager Couzzo asked Council for direction. Discussion ensued. Council Member Amero suggested scheduling a workshop with the Brokers so that Council would be more educated for next year. Manager Couzzo stated he would bring in two Brokers for comparisons. 6 Minutes-Village Council Workshop 08/30/07 Page 7 Council Member Amero referred to page 7 Human Resources account 526.105 and asked why the Village was putting in fora 100% increase. Manager Couzzo responded that Ms. Reid would prepare a written explanation for Council Members to review. Council Member Amero questioned a 38% increase in operating expenditures under election expense. Ms. Lori McWilliams, Village Clerk explained there would be additional increases from the media costs, additional poll workers and there will be additional advertizing. She stated no one came forward to run during the 2006 election; therefore, there was not a need for an election and expenses for that year. She explained the travel increase was designated for training the office assistant on the imaging system and classes necessary to better that position. Council Member Amero questioned the need for more than one poll; he felt the previous turnout was not enough to require an extra poll. Ms. McWilliams responded polling locations were determined by the Supervisor of Elections. Manager Couzzo stated they would check into requesting elimination of the extra poll. Council Member Amero stated he was not for an increase in travel per-diem and would like to see the cost of printing and binding reduced. He questioned the Marine Unit and its 14.5% increase. Police Chief McCollom responded the Marine Unit was a great patrol tool; and the increase was due to having two Yamaha engines now instead of one which doubled the maintenance and was not covered in the warranty. Fire Chief Weinand commented that he would like to do more with the community and offer CPR lessons to residents. Ms. Jody Forsythe, Director of Finance, stated the governmental training course for her department was going to be in Palm Beach Gardens this year which would eliminate the travel expense. Mayor Humpage stated Council previously agreed through consensus to include additional training for Village employees. Vice Mayor Watkins felt the Bridge repairs needed to take precedence and she would like to see it started as soon as school recessed; and felt financing should come from reserves or if need be; obtain a loan or a combination. Mayor Humpage stated there was $330,000 in the budget designated towards the Bridge. Ms. Forsythe stated Council needed to give her guidance on the designations and amounts. Manager Couzzo asked if Council wanted to set aside part of the $330,000 for design so that part of the project would not hold up the job. Vice Mayor Watkins had no issues with the travel portion of training and felt it was all there to better the Village. Council Member Turnquest voiced support of the part time Parks and Recreation position going full time and noted Council speaking about taking care of residents; he felt this employee was raised in the Village, worked in the Village, and still lived in the Village and should be respected. 7 Minutes-Village Council Workshop 08/30/07 Page 8 Council Member Paterno asked about the total figure for Parks and Recreation and wanted to know if the increased figure was from moving the part time person to full time. Ms. Michelle Gload, Senior Account Technician, responded $25,000 was for the full time position; with the remaining increase from Auto Liability Insurance. Council Member Paterno referred to the uniform figure from Fire of $17,170 and it had more than doubled. Chief Weinand explained that the figure for small tools and equipment was now combined with uniforms. Council Member Paterno asked if laundering of uniforms or sheets were contracted out. Chief Weinand responded no, the employees did all their own; the exception was the Medical Director and bio hazardous waste was contracted out; he added the department also recently received their license for residential fire hazards. Council Member Paterno asked Mr. Russell White, Public Services Manager, about the $10,000 set aside for engineering of a water tank. Manager Couzzo responded that the tank must be inspected internally for deterioration and might need interior recoating and painted. Council Member Paterno asked about the mast arms at Tequesta Drive and Old Dixie. Mr. White responded that the final design was done and the project was in the hands of the County; he added the mast arms were in and the project had been paid for; the Village was still waiting for the County. Manager Couzzo noted the money set aside might never have to be spent. Council Member Paterno referred to the rollover figure of last year being 10% of the budget and asked if there were any departments which might need money for projects that have not been completed or not started. Manager Couzzo responded not that he was aware of and if a purchase order was turned in after tomorrow there would have to be a good explanation of why. He stated the mast arms contingency money would be a roll. Council Member Paterno asked what impact fees were and if they would go into a Capital Account. Ms. Catherine Harding, Director of Community Development, explained they were fees collected on any new living or business area for future impact and were there to benefit police, fire and recreation. Ms. Jody Forsythe, Director of Finance, commented the fees were meant for the future and could not be used for operations and could be charged off to Public Safety Facility because it was a purchase for the future needs of Police and Fire. Discussion ensued. Council Member Paterno stated it appeared the cut backs in the budget were taken from neighborhood improvements and felt there should be more of a balance. Mayor Humpage felt it was an unusual year for the budget and agreed improvements to the Village and the budget should continue. Manager Couzzo confirmed the bridge would be done during the year and he had secured information on loans with amortization schedules and would give a copy to each member. Council Member Amero asked if there were any bonds, grants or Federal money available. Couzzo stated the Village had checked with the County and State and 8 Minutes-Village Council Workshop 08/30/07 Page 9 there did not seem to be anything available; but with the Minnesota bridge issues he would recheck. Mayor Humpage asked the Village Clerk to put the Insurance matter as top priority in consideration with scheduling the workshops. Council Member Amero stated in speaking to Jody in length about the financial impact to the Village on items such as the COLA, employee benefits, changes in the policy and policy manuals she stated she sometimes does not see the contracts until after the deal is negotiated; he recommended that Village policy state; any contract which impacted the Village should be run by finance. Manager Couzzo stated he would be for that and felt any contract should be advised by the department head of the department it was going to impact as well. Mayor Humpage believed Ms. Forsythe had input on contract items. Ms. Forsythe confirmed that she had explained to Council Member Amero she does not always sit in on negotiations because the Manager usually took care of that. Council Member Paterno said he was comfortable with Manager Couzzo taking care of the negotiations and felt it was a good idea for Ms. Forsythe to listen in for information that might impact the Village financially. Council Member Turnquest agreed each department which might be affected should be involved in the negotiations. Police Chief McCollom felt it would be important to involve department heads. Council Member Amero stated he would like Council to be informed of any changes to Capital spending such as donations or grants that might change the original budget figure. He would like to see the same level of service but give department heads incentives to save money. Manager Couzzo assured that department heads were frugal according to their budget actions, but felt giving incentives was an area to be cautious on. He stated his past experience with incentives in other municipalities had been shown to cut items which were needed to save money to meet their incentive; then the municipality had done without an item or service that should have been purchased. He felt making sure items considered necessary had been done first, then secondary, was if money was saved. Police Chief McCollom asked if it would be required to report any savings to Council. Council Member Amero responded yes. Council Member Paterno added that both department heads and Council must agree on items purchased and the amount of money spent. Vice Mayor Watkins felt all should be commended and stated the Village had done an outstanding job. Manager Couzzo stated in the past couple years the Village had moved past the previous set standard and begun to recognize employee's performance and reward them. He felt it had raised creativity and job motivation and was already a great incentive. Council Member Paterno reminded that Union contracted employees could not be eligible for incentives. Vice Mayor Watkins agreed, but stated all who did good work should be rewarded. Council Member Amero asked if he had the consensus of Council on his items. Vice Mayor Watkins confirmed the consensus was for Capital. 9 Minutes-Village Council Workshop 08/30/07 Page 10 Council Member Amero reiterated the department heads would be motivated by monetary incentive or vacation time. Manager Couzzo stated motivation for departments would be a good thing and Council could use the approved budget for a guide and then develop a grading system for incentives. Mayor Humpage felt the Village should cut back on the glitz of the Smoke Signal publication which would cut costs and allow for a bi-monthly publication. He noted this cut in cost would make it possible for the Village to get more information to the residents. Vice Mayor felt residents wanted the information not necessarily the pretty package. Council Member Amero suggested calling Seabreeze Publications for a quote. Council Member Paterno suggested using the Internet to do more of the work and felt the majority of the resident's were Internet savvy. Mayor Humpage thanked everyone for attending. Manager Couzzo stated the department heads could be dismissed and Council needed to go over a refuge and recycling. Ms. Catherine Harding, Director of Community Development, asked if her department change had been approved. Manager Couzzo replied yes. III. Adjournment MOTION: -Council Member Paterno moved to adjourn the meeting at 11:38 a.m.; Vice Mayor Watkins seconded the motion; motion passed 5-0 Respectfully submitted, Lori McWilliams, CMC Village Clerk 10