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HomeMy WebLinkAboutMinutes_Miscellaneous_11/05/1997_Finance & Administration Committee G F Tjr VILLAGE OF TEQUESTA r Post Office Box 3273 • 357 Tequesta Drive Tequesta, Florida 33 , 469 -0273 • (561) 575 -6200 c� Fax: (561) 575 -6203 f+cN CGU tr VILLAGE OF TEQUESTA FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES NOVEMBER 5, 1997 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 Wednesday, November 5, 1997. The meeting was called to order at 8:32 P.M. by Chairman Carl C. Hansen. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were the following Committee members: Chairman Vice Mayor Carl C. Hansen, Co -Chair Joseph Capretta, and Co -Chair Ron T. Mackail. Also in attendance were village Manager Thomas G. Bradford, and Finance Director Bill Kascavelis. II. APPROVAL OF AGENDA Co -Chair Mackail made a motion to approve the agenda as submitted. 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. KecYcled Paper FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 2 ------------------------------------ III. COMMUNICATIONS FROM CITIZENS (NON - AGENDA ITEMS) There were no communications from citizens. IV. CONSIDERATION OF ESTABLISFNNNT OF THE FINANCE & ADMINISTRATION COMMITTEE AS THE VILLAGE OF TEQUESTA AUDIT COMMITTEE PURSUANT TO THE RULES OF THE AUDITOR GENERAL, CHAPTER 10.550, AND CONSIDERATION OF APPROVAL OF NOWLEN, HOLT & MINER AUDITING SERVICES PROPOSAL. Village Manager Bradford explained that the Auditor General had recently adopted rules requiring local government to create an audit committee to oversee the audit process in terms of selection of auditors and also in order to have the annual audit accepted. Finance Director Kascavelis explained that in the past the Village had contracted for their annual external audit with a letter of engagement. The firm of Nowlen, Holt & Miner had provided audit services for many years. Daniella Russell, the auditor in charge of the Village's audit, was present at the meeting. Mr. Kascavelis commented that selection of an auditor would now need to be made either under the new audit committee requirements or under State requirements. The Finance Director explained that the proposal from Nowlen, Holt & Miner was dated June, 1997 because it had been intended for consideration at the July Finance and Administration Committee meeting; however, the agenda had been full, and under the requirements the Auditor General was required to notify the Village of their intent to audit by July 1 each year or it became the responsibility of the Village to make arrangements to have an independent external audit. Mr. Kascavelis explained that he had not solicited RFPs because the Village had been pleased with the services of Nowlen, Holt & Miner for many years. Mr. Kascavelis recommended to the Committee that Nowlen, Holt & Miner be retained for external audits in accordance with FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 3 ------------------------------------ their proposal, which was for a lower dollar amount than paid the past two years and which allowed each party to withdraw upon 90 day's notice. Auditor Daniella Russell explained that their firm was periodically reviewed by a peer and had passed a recent review with flying colors. Ms. Russell explained that their firm had had a lot of experience working with the village and felt their considerable knowledge about the village was an asset. Another plus was that the audit firm was available during the year for consultation. Ms. Russell explained that the 5 -year proposal carried a fixed fee of $35,000, not including accounting services, for the first two years; which was approximately $5,000 less than had been paid in the past. The fee for the third year was $36,100; for year four $37,200; and for year five $38,300. Co -Chair Mackail made a motion to approve establishment of the Finance and Administration Committee as the Village of Teguesta Audit Committee and to accept the proposal of Nowlen, Holt & Miner for auditing services. During discussion of the motion, Chair Hansen inquired whether the auditors had been finding anything wrong, to which Finance Director Kascavelis responded that areas of concern were pointed out; for example, the auditors had repeatedly mentioned that more personnel were needed in order to establish checks and balances to avoid collusion, and with only three employees it was necessary that those employees perform several duties. Mr. Kascavelis commented that the Finance Department had made changes in the way transactions and procedures were handled and that since 1980 there had been no shortage of funds or misspent funds, so unless the Village Council considered it necessary to increase staff it was his recommendation that it was more cost effective to maintain the present level of personnel. Co -Chair Capretta questioned the procedure which would be followed if misappropriation of funds was discovered. Ms. Russell responded that she would have verbal discussions with the FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 4 Finance Director and the Village Manager and then would present a final report at the conclusion of the audit to the Audit Committee. Mr. Rascavelis stated that a shortage of funds of a few hundred dollars had occurred this year and that the employee involved had been discharged for other reasons. Chair Hansen questioned who had presented the award to the Village for good accounting procedures. Mr. Rascavelis explained that the Village submitted a copy of the annual report containing 10 -year statistical data to the National Government Financial Officers' Association for review, and if it met the highest standards, a commendation was received. The report was used by bond buyers who could use it to compare municipalities. The Village had received the award since 1983. Chair Hansen 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. V. DISCUSSION RELATIVE TO ESTABLISHMENT OF INTERIM SERVICES FEE. Village Manager Bradford explained that interim service fees were fees used to pay for operating expenses due to new growth which was incomplete on January 1 when real estate property values were assessed and therefore not entered on the tax rolls until the next year, although the Village was supplying services during that year. Establishment of such a fee by the Village could generate up to $8,000 annually, and the Village Manager explained that his recommendation had been to pursue establishment as long as Palm Beach County had intended to establish such a fee for County services. Since this agenda item had been prepared, the County had decided not to establish their proposed fee, and FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 5 ------------------------------------ the Palm Beach Post had reported that the fee could be challenged and would be unwise; therefore, the Village Manager was no longer in favor of the Village establishing their own interim services fee. The Village Manager explained that Collier County, Deerfield Beach, and Boynton Beach did have such fees. During ensuing discussion, Co- Chair Mackail explained that the County Municipal League was working on partial year assessments, and commented that he was not sure the interim services fee was legal and that he did not feel comfortable establishing such a fee at this time. The other members of the Committee agreed. Co -Chair Mackail suggested that a letter be drafted to legislators in Tallahassee acknowledging the Village's interest in partial year assessments. Co -Chair Mackail made a motion to postpone establishment of an interim services fee. Chair Hansen 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. VI. REVIEW OF VIDEO EN'T'ITLED PROTECTING FLORIDA'S WATER: PROPS R SEPTIC TANK SYSTEM USE AND MAINTENANCE; FLORIDA DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES. Village Manager Bradford explained that the suggestion had been made that an alternative to the establishment of centralized sewers might be proposed to ENCON to institute an annual septic tank inspection program; and that this 28- minute film showed the ramifications of such a program. The video was shown. Chair Hansen questioned whether it might be possible to include an assessment on tax bills to support a septic tank maintenance program for all septic FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 6 ------------------------------------ tanks in the Village, which would be done by a licensed contractor. Village Manager Bradford responded that such a program could be established, and if done as an assessment then the cost would have to be paid; however, it was unknown whether ENCON would accept the program or the data. Village Manager Bradford commented that one reason he had wanted the Committee to see the film was that there were a lot of properties in Tequesta that did not meet the criteria set forth in the film for septic tanks that there must be two feet of separation from the high water line, that many drain fields had ficus growing in them, and that most people with septic tanks probably had garbage disposals, which the film did not recommend. The Village Manager commented that it was possible people would prefer the centralized sewer system when they found out the cost to correct their present septic tank systems. Co -Chair Mackail commented that many tanks and drainfields would probably need to be replaced. Co -Chair Capretta commented that he believed ENCON would not accept this program as an alternative to sewers, and agreed with Co -Chair Mackail that many Village residents were older people living on fixed incomes who did not use much water since their children had grown up and moved away, and they would not want to make improvements to their septic tank systems as long as the systems were working. Co -Chair Capretta speculated that it would take ENCON a long time to put in sewers and streets might be torn up for several years, and commented that an accelerated plan for installation should be proposed, but that this could not be done while the Court case was pending. Co -Chair Mackail proposed that the Village approach ENCON with the program and divide the Village into areas for less disruption. Co- Chair Capretta commented that people did not have their septic tanks drained unless they stopped working, and that the proposed program could include a requirement to have tanks drained every five years. Chair Hansen commented that if the Village was going to have a discussion with ENCON that the Village should have arguments that the Village is not polluting the river and a proposal for an enforced FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 7 ------------------------------------ septic tank maintenance program. Joe Hall commented that he did not know the full meaning of the term to "operate and maintain properly" in connection with septic tanks as discussed in the film. The film had indicated that a garbage disposal should not be installed with a septic tank system. Mr. Hall questioned what else could be done to maintain the system. During ensuing discussion, CO -Chair Capretta questioned the use of Rid -X, which he used periodically in his septic tank system. VII. ANY OTHER MATTERS There were no other matters to come before the Committee. VIII. ADJOURNMENT Co -Chair Capretta made a motion to adjourn the meeting. Co- Chair Mackail 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 9:50 A.M. Respectfully submitted, "�ettyour Recording Secretary FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES November 5, 1997 Page 8 ------------------------------------ ATTEST: .' Joann Manganie to village Clerk DATE APPROVED: /i 7 1 �r97