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HomeMy WebLinkAboutMinutes_Miscellaneous_01/07/1999_Finance & Administration Committee F Tf VILLAGE OF TEQUESTA r Post Office Box 3273 - 250 Tequesta Drive - Suite 300 o` Tequesta, Florida 33469 -0273 - (561) 575 -6200 Fax: (5 1) 575 -6203 VILLAGE OF TEQUESTA FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES JANUARY 7, 1999 I. CALL TO ORDER AND ROLL CALL The Tequesta Finance and Administration Committee held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Thursday, January 7, 1999. The meeting was called to order at 5:33 P.M. by Chair Carl C. Hansen. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were the following Committee members: Chair Carl C. Hansen, Co -Chair Joseph Capretta, and Co -Chair Ron T. Mackail. Also in attendance were Village Manager Thomas G. Bradford, and Village Clerk Joann Manganiello. II. APPROVAL OF AGENDA Co -Chair Mackail made a motion to approve the agenda as amended with the addition of minor items by Village Manager Bradford and the addition of discussion of the Public Service facilities as requested by Chair Hansen. Co -Chair Capretta seconded the motion. The vote on the motion was: Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted and the agenda was approved as amended. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 2 ------------------------------------ III. COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEKS) There were no communications from citizens. Iv. CONSIDERATION OF CREATING NEW TEQUESTA UTILITIES DEPARTMENT AND ADVERTISING FOR PROPOSED UTILITY DIRECTOR POSITION village Manager Bradford explained that the village Charter called for separate departments as established by the Village Council by Ordinance upon recommendation of the Village Manager; therefore, if a new Utilities Department was desired, it would need to be established by Ordinance. village Manager Bradford described the existing organization of the Village utilities, which consisted of a Water Department and Department of Public works. Stormwater Utility was presently a division of Public Works. During the past few months, Stormwater Utility Director Al Oslund had accepted a position with a local Palm Beach County contractor, and Water Department Manager Tom Hall had moved to North Carolina, creating an opportunity to reorganize by merging the Water Department with Stormwater Utilities with one person supervising both. This consolidation would save the Village money, and would create a job similar to that held by David Brown, Utilities Director for the Town of Jupiter. The pay scale for the new position would range from $55,249 to $73,100. Village Manager Bradford suggested advertising the position in the Palm Beach Post as well as in a newspaper on the west coast of Florida, since RO plants had been in existence there for some time. The village Manager raised the question of whether an engineering degree should be a requirement for the position, and explained that Rim Bishop of Seacoast Utilities and David Brown of Jupiter did not have engineering degrees but had had prior experience working in utility operations. village Manager Bradford stated he had reversed his prior position that an engineering degree should be a requirement, and now believed FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 3 ------------------------------------ an engineering degree would be desirable but should not be a requirement. Village Manager Bradford explained that merging the two departments to create a Utilities Department with one director to oversee both operations would save from $50,000 to $75,000 annually, which could be used to hasten completion of scheduled projects or to reduce the level of assessments in the system. Co -Chair Mackail commented that another support staff employee might be needed, and that present staff did not have a high level of education. Village Manager Bradford responded if the new Director requested more help then an Administrative Assistant position could be established, and that the new Director would provide a higher level of expertise than at present. The village Manager explained that saving money was not the primary driving force in considering the reorganization, and that Al Oslund had completed the NPDES permit application before he left, so that a new person would not have as much to do. Co -Chair Mackail commented that the Water Department had not been in good shape when the Village hired village Manager Bradford, and was now much improved, but that water was still a big issue for the village, and expressed his opinion that the target for sales should be outside the village, and the person hired should be familiar with areas west and east of the Village. Village Manager Bradford responded that the area for water sales needed to be expanded, that a full protocol was needed for the RO plant, possibly new staff members would be needed for the RO plant, compliance with the stricter Clean Water Act regulations must be accomplished within the next 18 -24 months, and the RO plant might have to be run more than previously anticipated to meet those regulations. RO water would be cleaner and might have to be used to replace some of the current water to stay within the Clean Water Act thresholds. Another task was to evaluate the work force and possibly consider whether to contract out the RO plant operation. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 4 Co -Chair Capretta commented some people had technical expertise but were not good administrators, and made the point that the Village did not need another high - priced manager since the NPDES permit application had already been completed. Co -Chair Capretta suggested an audit to see what was needed in the Water Department and explained that start -up of the RO plant would entail different needs than operating after start -up had been completed, and commented that outside companies were available to perform both functions. Co -Chair Capretta commented that expansion of a water company was both a business and technical operation and the consultants must be brought back for advice regarding the technical aspects. Co- Chair Capretta commented that combining the two departments would probably work without a high - priced manager with an engineering degree, and asked the village Manager whether he could run the combined department. Village Manager Bradford responded that he believed he could do the job but did not have a plant operator license. Co -Chair Capretta suggested the possibility that consultants could be brought in to provide short - term expertise or to run the RO plant, and commented that technical people might not be attracted to work in such a small Village. Co -Chair Capretta suggested that the current Public Works Director, Gary Preston, might do the job. Village Manager Bradford explained that the only problem was that Mr. Preston would not have enough time to take on the added work along with his present position. Co -Chair Capretta stated that he favored having 2 -3 good managers and hiring consultants and engineers when they were needed. Village Manager Bradford commented that there were firms which would contract to run either the technical or administrative work for the plant. Co -Chair Capretta recommended getting names of four or five firms that run RO plants, to consider Mr. Preston for the job and give him another staff person, and hiring consultants when they were needed. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 5 Chair Hansen expressed his opinion that the new manager should be a hands -on person, questioned whether Jupiter used engineering consultants, and suggested that be investigated. Chair Hansen asked whether the Village Manager was aware of anyone currently on staff who might apply for this position, to which Mr. Bradford responded negatively. Chair Hansen commented he was amazed at how technical the RO operation was, which he had witnessed during visits to the plant during construction; and therefore favored someone with experience and an engineering degree. Co -Chair Capretta expressed his opinion that Mr. Preston could do the management job, with a technical person to make the RO plant operational, and the situation could be re- evaluated after a couple of years. Village Clerk Manganiello explained she had been managing the Water Department since the departure of Tom Hall, and had been able to handle the administration, had coordinated closely with the engineers for updates, and had granted permission to them to perform tasks. The Village Clerk explained that her greatest concern was the Village had no one on staff with a working knowledge of an RO plant, which was highly technical and specialized. She reported that plant operators had taken some general training courses in RO plant operations and that she had contacted Town Manager Lee Evett in Jupiter to request that Tequesta plant operators be allowed to work regular shifts along with Jupiter personnel to observe their operations. Mr. Evett was to get back to Ms. Manganiello after checking with David Brown. The Village Manager reported that some items were included in the RO contract, such as operations protocol meetings which were now being conducted, installation and training of software, and training provided by manufacturers in use, repair, and maintenance of their products. Consultants Reese Macon & Associates would be on -site for three months, then the Village would be on their own to operate FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 6 ------------------------------------ the plant, and the village Clerk expressed great concern regarding the village's lack of expertise in running an RO plant. Chair Hansen expressed agreement and stated he felt someone was needed who was really capable of controlling the plant and evaluating the performances of plant operators to see if they were doing their work right, and stated the question was whether a new person should take over two positions or whether the Village needed a consulting firm to operate the RO plant. Chair Hansen stated someone was needed to run the water plant, not just RO. Co -Chair Capretta stated he agreed a manager was needed but felt he should only concentrate on the plant and not on Stormwater Utility, and should supervise personnel and be technically qualified for startup. Village Manager Bradford questioned whether Stormwater Utility should be set aside. Discussion ensued. Co -Chair Mackail suggested that consultants Reese Macon & Associates put together a scenario. Co- Chair Capretta suggested that when interviewing potential candidates, interviews should also be conducted with firms that manage RO plants, and proposals obtained. The Village Manager pointed out that different people would be attracted according to the name chosen for the job title. Co -Chair Capretta stated the job title should be one that would attract the right person. Co -Chair Capretta stated the Village should get someone to run the water plant and start it up. Chair Hansen questioned whether Co -Chair Capretta was against someone taking over also the Stormwater Utility or if he thought it might not be necessary, to which Co -Chair Capretta responded it might not be necessary but he would not be opposed to the Stormwater Utility being included if the right manager could be found. Co -Chair Mackail made a motion to approve the plan as submitted by staff. Co -Chair Capretta seconded the motion. The vote on the motion alas: FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 7 ------------------------------------ Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted. V. ANY OTHER MATTERS Chair Hansen expressed concern that the decision made on December 15 to go ahead with the Tequesta Plaza project might shift attention away from work that should be done on the Police and Fire facilities. Chair Hansen envisioned the next big decision as being when to tear down the building at Tequesta Plaza, commented that he expected the new road to be installed in a couple of years, and felt it would be three years before decisions were made on Bridge Road work, with four to five years to completion. Chair Hansen stated that in the four to five year plan for Tequesta Plaza, he would like to see work also planned for the fire department facilities, both in the financial plan and in the time schedule plan. Chair Hansen reported that Jupiter Inlet Colony was saving money by using the Tequesta Fire Department, and the Village was saving money by having a local Fire Department, and he would like to see where the village stood in that regard. village Manager Bradford verified that the contract with Jupiter Inlet Colony would expire in five years. Co -Chair Capretta questioned why the village did not go ahead with the living quarters for the firemen if that project did not affect the Village Hall building. Village Manager Bradford responded the cost of $1.3 million had been out of line and an option had been proposed to put the living quarters to the east of the existing annex building at a cost of $1 million. Co -Chair Capretta stated it should be built as soon as possible. Co- Chair Mackail expressed his opinion that the present village Hall Police Department quarters were antiquated and both they and the fire personnel needed good working facilities. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 8 ------------------------------------ Co -Chair Capretta stated most residents did not know the building was antiquated. Chair Hansen reported that from talking with Police Chief Allison, the police employees were pleased with the extra room they had been given, and there was no morale problem as in the Fire Department. Village Manager Bradford responded if the Committee wished to do more than previously discussed, he needed to know since NationsBank would be granting a 3 -year interest only line at 4.91 %, on which money could be borrowed as needed. Co -Chair Mackail recommended completing the Public Safety facilities. Discussion ensued regarding public perception and what North Palm Beach had done for their Fire and Police Departments. Co -Chair Mackail favored a plan to provide state -of- the -art operations for today and for the future. Co -Chair Capretta commented the village could either do nothing until the money started coming in or go ahead with a higher line of credit, and suggested that in five years Village Administration could plan to move back to the Village Hall location. Village Manager Bradford commented the line of credit would buy time and could be increased. Co -Chair Mackail commented that Co -Chair Capretta was saying a coordinated plan was needed for long term needs. Following discussion, Village Manager Bradford stated he would have a $4 million line of credit on the agenda at the next Village Council meeting, and the Village would not be obligated to use the $4 million. Village Manager Bradford reported he had met with both the bond counsel and the financial advisor and they said if the Village could assure them the Village would do 85% of the projects which had been proposed within three years, that they would propose to borrow all the money now and invest it in fixed guaranteed contracts which would produce $10,000 to $30,000 income annually on the interest proceeds versus what had to be paid on debt service. The bond counsel and the financial advisor expected interest rates to go down. Co -Chair Mackail also predicted interest rates would go down. Chair Hansen stated he was reluctant to start making decisions now on a new Village Hall since he thought there were too many unknowns at this point and he FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 9 ------------------------------------ first wanted to see how the Tequesta Plaza project played out. Co -Chair Capretta stated both Tequesta Plaza and the firemen's living quarters should be built, with which Chair Hansen agreed. Co -Chair Mackail agreed, but wanted options available and a long -term plan developed that future Village Councils could follow. Co -Chair Mackail recommended getting the maximum line of credit of $5 million since it did not have to be used. Village Manager Bradford stated he would request a 3 -year line at a rate of 4.91$. Village Manager Bradford reported Finance Director Connie Holloman was away because her mother -in -law had passed away; however, everything was on schedule for mailing out water refund checks on January 25. The Village Manager reported the construction schedule on the RO plant was currently two weeks behind, and the Water Rate Analysis Study is behind, because of the difficulty in obtaining a programmer for the Village's antiquated computer system to work with a staff consultant on block rates and adjusting every charge and fee in the water department to bring them higher. Village Clerk Manganiello announced that all new rates would be effective July 1, 1999. Co -Chair Mackail expressed his compliments to Finance Director Holloman for the detailed interim financial statement. Peggy Verhoeven requested and received an explanation of the difference in a line of credit and a letter of credit. Ms. Verhoeven expressed concern regarding the letter of credit which Mr. Zuccarelli had guaranteed for the Tequesta Plaza project. It was explained that there was little risk regarding a letter of credit because, if required, it would probably be secured by cash. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES January 7, 1999 Page 10 ------------------------------------ VI. ADJOURNM W Co -Chair Mackail made a motion to adjourn the meeting. Co- Chair Capretta seconded the motion. The vote on the motion was: Carl C. Hansen - for Joseph N. Capretta - for Ron T. Mackail - for The motion was therefore passed and adopted and the meeting was adjourned at 6:55 p.m. Respectfully submitted, Betty Laur Recording Secretary ATTEST: Joann Manganiel Village Clerk DATE APPROVED: