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HomeMy WebLinkAboutDocumentation_Regular_Tab 07D_06/14/2001 �„-.=-� � -_.. � TF r' � " � VILLAGE OF TEQUESTA �`� Post Of�ice Box 3273 • 250 Tequesta Drive • Suite 300 9 �� a Tequesta, Florida 33469-0273 • (561) 575-6200 �'� � Fax: (561) 575-6203 = , �., �� Co y VILLAGE OF TEQUESTA SPECIAL VII,LAGE COUNCIL AND STO�CMWATER UTILITy gpARD MEETING 1lZIlVUTES MAY 30, 2001 I. CALL TO ORDER AND ROLL CALL The Tequesta Village Council held a meeting at the Tequesta Recreation Center, 399 Seabrook Road, Tequesta, Florida, on Wednesday, May 30, 2001. The meeting was called to order at 7;06 P.M. by Mayor Geraldine Genco. A roll call was take� by Betty Laur, Acting Village Clerk. Councilmembers present were: Mayor Ge�aldine Genco, Vice Mayor Joseph N. Capretta, GQtancilment�er Basil E. Dalack, Councilmember Russell von Erank, and Gouncilmembe� Sharon Walker. Also in attendance were: Village Manager Michael R. Couzzo, Village Attorney John C. Randolph, and Acting Village Clerk Betty Laur. II. PLEDGE OF ALLEGIANCE The meeting opened with an i.nvocation by Councilmember Dalack and the Pledg� of A1legiance to the American Flag. IrI. APPROVAL OF AGENDA Mayor Genco requested an item be added immediatel�r following Communications from Citizens which would be the equivalent of Any Other Matters. There were no objections to this addition. Coun.cilmember Walker asked to speak to a technicality, and , stated that this was a special meeting as had been noticed, Recycled Paper SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 2 and was also a Stormwater IItility Board meeting; and as a special meeting it could only be noticed, that is called, by either the Manager or the Mayor as per the Village Code Section 2-17, entitled Special Meetings. Councilmember Walker requested a legal opinion on this matter before proceeding further with this meeting as to whether this meeting had been properly called in accordance with the Village code or whether only stormwater utility items could be heard. Village Attorney Randolph stated he did not see the notice for this meeting, but recalled that at the last meeting the Village Council had discussed having this meeting, and the Village Council could call a special meeting. Councilmember Walker commented she did not have the minutes for that meeting so could not verify that� and although this might seem to be a technicality, she was bringing it to the attention of the Village Council and the Village Attorney to make a determination to assure that the Village Council was conducting business properly and legally. Mayor Genco eommented that since she did desire this meeting and recalled making a statement to that effect at the last meeting and was entitled to do that as Mayor, she believed that was sufficient, and questioned Attorney Randolph. Attorney Randolph read from the Village code that special meetings may be called at any tim.e, three days notice must be given, such notice may be announced at a regular Council meeting, which he thought that it was, or may be in writing signed by the Village Manager or the Mayor, which he had not seen. Village Attorney Randolph commented he recalled setting this special meeting of the Stormwater IItility Board at the last meeting. Councilmember Walker stated that was correct, that her concern was regarding the special meeting, and she just wanted to make sure the Village Council was doing everything properly and according to Village code. Attorney Randolph stated he wauld have to refer to the minutes, but believed there had been discussion regarding this meeting at the last Council meeting, and that Councilmember Walker was correct that staff and GQUncil needed to pay adherence to the manner in which these meetings were called. Councilmember Walker indicated she recalled discussion regarding the Stormwater IItility Board meeting bu� did not regarding the special meeting. Village Attorney Randolph recalled other matters came up at the last meeting and there had been discussions about setting SPECIAL VILLAGE COUNCIL AND STOR1rb�TATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 3 ----------------------- those specifically at this meeting. Councilmember Walker recalled that had happened regarding the YMCA.. Attorney Randolph commented that regarding the other matters on the agenda he did not recall whether those had been discussed; however, it appeared those were just presentations, reports on progress, and review of the audit, which would not require action. Vice Mayor Capretta asked if the Council would need to vote on any decisions, to which Attorney Randolph responded, the Resolution on the YMCA an.d the Stormwater IItility. Mayor Genco indicated she specifically recalled those being discussed at the last Coun.cil meeting and being given a May 30 deadline. Mayor Genco asked the Village Attorney for an opinion whether this meeting had been properly called. Village Attorney Randolph stated, yes. Councilmember Dalack made a motion to approve the agenda as Rmended. Councilmember von Frank seconded the m�tion, which carried by unanimous 5-0 vote. IV. C;O�UNICATIONS FROM CITIZENS Wade Griest, commented he would like to save his comments for the next meeting when a larger crowd would be �resent. V. ANY OTHER MATTERS Ma.yor Genco stated tl�is was the item she had requested be added. Mayor Genco stated: During the last several weeks, I have had a situation where I have had more than one employee come to me that there are situations where a Councilmember is telling them that their job is being threatened, and the employees are somewhat upset about this. We have a Village Charter that specifically addresses who may talk to employees and under what conditions an employee should be talked to, which I thought we covered properly at the last meeting when we covered the Sunshine Law and some of the Charter things that Mr. Randolph went through. Councilmembers basically can talk to employees if you are approaching them like a citizen, i.f we have a question as to when a tree is going to be trimmed in our neighborhood or something else, a regular, routine question SPECIAL VILLAGE COUNCIL AND SZ'ORN�iATER UTILITY BOARD MEETING MINUTES May 30 , 2001. PAGE 4 ----------------------- that a citizen might ask. But having a Gounci.lmember talk to an employee about the terms of their employment, the langevity of their employment, the security of their position, is not tolerable. That is to be addressed through the Village Manager and only through the Village Manager. Behavior like that violates our Villaqe Charter Section 2-13, it`s called in.terference with the Admin�.strative Department, and it basicaliy dictates the appointment or removal of any Village office or employees who the Manager or subordinates are empowered to appoint. The Counci.l shall have the power to remove the Village Manager. No Councilmember or any of its members shall in any manner dictate the appointment or removal of the Village officer or employee ever. This is what our charter sa�rs. Violation of our charter would be, in my estimation, malfeasance under this conditi,on, and I would call for a removal from that Councilmember from office. I am extremely distressed over the conversations that I've had with the employees who have come to me, and I am sure that the Gouncil people know who they are and be assured that if it continues we will proceed to whatever steps we have to. ADDITIONAL CON�lUNICATIONS FROM CITIZENS Jeff Leslie, President of Jupiter Tequesta Athletic Association, indicated he was present to answer Councilmember Walker's concern regarding the building in back of Tequesta Park, known as the JTAA building, and that there were other issues about T�±questa Park he would like the Council to be aware of, and also to see if there would be any way to do some problem solving and to request consideration at upcoming budget hearings for improvements at Tequesta Park. Mr Leslie noted that there was broken glass at the building, and the door had been open but would be locked in the tuture. Mr. Leslie explained that his organization had just about abandoned what the�t did at the park, and that although Mr. Preston had always done an excellent jt�b, the Village just did not allocate many resources, so that the park was not maintained to a safe standard for children to play, and only one person could not handle 42 acres of park. Mr. Leslie explained that fields were needed, there were ant problems, there was grass which was unsafe to play on, there were unsafe SPECIAL VILLAGE COUNCIL AND STORNIWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 5 ----------------------- surfaces due to lack of irrigation, etc., although the Village staff did everything they could. Mr. Zeslie explained that parents were constantly stating they would not allow their children to play there because it was not safe. Mr. Leslie requested permission to present a list of items needed and to establish communication with the Village. Mayor Genco requested that Mr. Leslie prepare a written proposal and present his proposal at the next meeting, and indicated it would be an agenda item. Mayor Genco commented that the Village Council would be prepared to address his issues, and that items could be addressed in the budget. Harold Taylor, 13 Chapel Court, thanked the Architectural and Engineering Selection Committee for a job well done the previous day i.n selecting an architectural firm. Mr. Taylor offered the followi.ng points for consideration regarding the Citizens Advisory Board, which had been delayed to the next Village Council meeting. Regarding the Sunshine Law, Mr. Ta�lor expressed his opinion that if the Board worked within the law they would not get anything done because communications would be limited, but they should not try to work outside the law. Mr. Taylor noted that Councilmember Dalack had addressed the issue af political makeup of the Board at the last Village Council meeting, and commented that i.f each Village Councilmember selected a member for the Board, those members would obviously reflect the views of the Councilmember who appointed them. Mr. Taylor expressed concern that a"one size fits all" concept for this Board could be a problem since the appointees might not have enough knowledge or desire to solve all the problems that showed up at the meetings. Mr. Taylor suggested if a citizen presented a problem that could nat be immediately solved that they be asked to head an informal group of 4-5 people to look into the matter, come up with a report to include in the packets as backup, and be allowed 5 or 1,0 minutes to give a presentation at a Village Council meeting. Mr. Taylor sugg�sted listing a contact name and phone nutnber for each group in Smoke Signals or on the web site so that other interested residents could join. Mr. Taylor also suggested there be a Village Council liaison for each group, and gave as an example that Councilmember Walker would be a good natural sponsor for a group regarding activities for SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 6 ----------------------- children under the age of four, since that was an item she had discussed. The sponsor could meet with the group leader, present ideas the Village Council would need, and let the group do its work, then the group could disband after its work was finished. Mr. Taylor commented that under his plan there could be more than one group working at the same time and more people could become involved. VI. UNFINISHED BUSINESS A. Resolution No. 42-00/O1 - A Resolutian of the Villaqe af Tequesta, Palm Beach County, Florida, Approvi.ng an Agreement to Allow the YN1CA to Offer an After School Program Authorizing the Village Manager to Execute the Applicable Agreement on Behalf of the Village. Director of Public Works and Recreation Gary Preston announced that the YMCA Summer Camp registration was now at 15 for each of the weekl� programs during the month of June; however the YMCA had indicated that in the past 65� of the youngsters signed up during the last three days before the camp started. At this point in time last year, eleven had been signed up and the camp ended up with 42, and the camp had been at capacity each year for the past nine years. Councilmember Walker questioned if this was to be a three-month program. Mr. Preston explained the Resolution read that if the program was not successful after three months the program would stop. Mr. Preston explained that the YMCA was asking the Villac�e for an amount not to exceed $6,000 to cover those expenses, and once past the three-month time period the YMCA believed they would be in a situation to more than break even with this program. Mr. Preston explained that the YMCA did not want to go through the whole nine months if the program was not successful, because they would have to come back and ask the Village for more money, and the�r did not want to have to do that. Cauncilmember Walker asked if the after school care program would be run in the Recreation Center building from 2 SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 7 ----------------------- p.m. to 6:30 p.m. Monday through Friday, which was verified by Mr. Preston. Councilmember Walker stated she would like again to bring up an item that she kept bringing up, that the 18 and under as well as 60 and over population was continuing to grow. Councilmember Walker commented she was hesitant to commit the facility to one program that would exclude a lot of other residents and that also excluded the possibility of the Village possibly contracting out for recreational services that would serve as the entire life line of the community and not just one segment. Councilmember Walker noted preliminary year 2000 census information indicated the 18 and under po�ulation in Tequesta was 1,005 and in 1990 it had been 718; also in 1990 the 65+ population was 1,469 and in 2000 was 1,600, Councilmember Walker requested some workshops with the possibility of lookinc� at some contract services that could come in to offer whatever the Village could afford in their budqet t�.at would service the entire life line of the community, and asked if the YMCA had a deadline. Mr. Preston indicated the deadlin.e was very close; that within the next few days the restroom facility required for the Health Department would be completed; so a decision m.ust be made. Mr. Preston commented if there was any indication that the Village was going to consider programming this with a full-time supervisor or director, then this 4-1/2 hour period did take a lot of tim�. Mr. Preston commented the problem tonight was not knowi.ng what the next 2-3 months would hold when bttdget hearings took place, with possibly more requests like the one from the lady from Tequesta Pines at a�rior meeting requesting programs for a younger age group. Mr. Preston reminded the Village Council that they had approved this position about 1-1/2 years ago for a person to actuall.y program this facility. Councilmember Walker reported churches had come to her regarding the possibility of offering a non youth ministry out of this building, which was an up and coming way for youth to get on a straight path in l,ife and stay there. Councilmember Walker reported she had taken SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BOARD MEETING MINUTES May 30, 200i PAGE 8 ----------------------- the liberty of speaking to a couple of contract agencies and very ballpark figures were $60,000- $65, 000 a year, and requested a worksY�.op before making a decision. Mayor Genco commented the term for this agreement was only for three months which was discussed at the last Village Council meetinc�, and that this had been done deliberately in order to address all concerns at a workshop meeting for sp+ecifically evaluating the needs of the community in the budget process. Mr. Preston stated that was the intent, and elaborated that the actual intent was once the YMGA successfully passed the 3-month mark to continue this program for 9 months, but if for some reason the Village decided to open its own programming or if there were not enough numbers for an after school program. then the Village could reconsider, and he could make the YMGA aware it could only be a 3-month program. Mr. Preston questioned if when people signed up they would think the program was only for three months. Mayor Genco stated this contract was for three months to provide time to evaluate things and determine how the Village would expand the program and what the budget would be, so it seemed that Councilmember Walker's concerns were being addressed. Arnold Blum indicated he would like to clarify one point, that the "Y" in YMCA stood for youth, and this program was designed to address youth. Mayor Genco commented it was her understanding at the last council meeting that the Council specifically asked for this proposal to be presented this way and specifically asked it be presented on this date because it was the furthest date out that the YMCA would commit to this program. Vice Mayor Capretta commented the discussions of what would prompt a yes or no on whether to extend the YMCA to a full nine months had discussed participation of a maximum of 40 some, and asked whether if enrollment turned out to be the maximum if there was any reason not to go the full 9 months. Mr. Preston verified he fully expected the maximum enrollment so that the program would run for 9 months. Vice Mayor Capretta commented that would utilize this SPECIAL VILLAGE COUNCIL AND STORI�7ATER UTILITY BQARD MEETING MINUTES May 30, 2001 - PAGE 9 ----------------------- facility for 9 months, therefore, any other programs which the Village wanted to fund would have to utilize another facility. Mr. Preston expressed hope this building could be opened to other programs until 2 p.m. during weekdays, at night, and on Saturday mornings. Mayor Genco commented she understood from the last Council meeting the Village would just be buying time with the three-month period to give the opportunity of assessing all of the programs the Villac�e might want to offer and to determi.ne whether or not the Village would benefit a smaller population in exception of the larger population that might want to use the facility. Mr. Preston commented that the YMCA was hopeful if they were successful and passed the three-month time period that the Villaqe would allow them to continue. Mayor Genco indicated the Village was also hopeful, but there were no promises, and if the Village represented to them that there was a promi.se that would be erroneaus. Mr. Preston. indicated he would make that clear. Village Attorney Randolph read Resolution 42-00/01 by title only. Councilmember von Erank made a mation ta accept Resolution 42-00/01. Vice Chair Capretta seconded the motion, which carried by unani.mous 5-0 vote. VII. Report by Fire Chief Weinand, Police Chief Allison, and Gee � Jenson on Proqress and Status of Design and Specifications for the Public Safety Facility. Fire Chief Weinand commented Gee & Jenson was up to the 65% design phase and owner comments were needed by Gee & Jenson on Friday, June 1. Gee & Jenson's representative explained that the job was actually 75o complete, and introduced team members from his firm. A review of the project was made by the Project Manager, and included the following highlights. The project manager reviewed the site plan and explained how the building must be positioned to allow sufficient tta.rning radius for emergency vehicles . SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 10 ----------------------- The floor plan, divided into three areas, was described. One area, the Emergency Operations Center (EOC) was hurricane protected and was described as a building within , a building. Proposed screening for the backup generator, c�rhich would provide 50 hours of power, was reviewed. Eire and police areas were described, and it was noted that computer wiring would be placed under the floor in certain areas so i.t would be fully accessible. A color sample board was presented and colors were discussed. The proposed exterior architecture and colors were described, as well as interior colors--consisting of earth tones and soft colors. Surfaces within the building were described as good maintainable surfaces, with minimum carpeted areas to reduce wear and tear. The living area for firefighters was described as being more like a residence. Councilmember von Frank questioned the cost of the facility, to which the response was between $3 and $3.2 million. Final numbers were not yet available for site work including utilities, earth.work, and sewering, because changes had been made. Village Manager Couzzo commented that the original esti.xn.ate had been $3.2 million and change, so the project was within budget, and landscaping was included. Mayor Genco commented that the training tower was for the future. Fire Chief Weinand reported development of the plans had been an exciti,ng proj ect . The Project Manager indicated prequalifications for bidders started last week and would be completed June 11 at 2 p.m. at the offices of Gee & Jenson in West Palm Be��h. Th� project would be ready for bid in August, which was right on schedule. Councilmember von Frank suggested leaving the bays as they were but moving the building 45 degrees to front on Tequesta Drive; however, the architect advi.sed there was not sufficient room. Mayor Genco commented some landscaping, signage, and a clock would be positioned to make the frontage on Tequesta Drive look more like a building front, however, the actual front would be on the east side and traffic would be directed to that side. The architect indicated the building was ax3.L-shape, that the east facade was 185' long, the building was 91' wide, and 135' faced onto Tequesta Drive, with the L-shape forming an area for a service courtyard. Village Manager Couzzo indicated the project was right on schedule and would hopefully come in under budget. Mr. Couzzo explained that the Village had made a determination to have bidders 3PECIAL �TILLAGE COUNCIL AND STORMWATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 11 ----------------------- prequalified by the architect, which would put the project on a better time frame and probably would result in a better cost by giving bidders a better understanding of the � project. Mr. Couzzo indicated that the architects had been requested to design a highly energy efficient building for long term, that FP & L would do an audit prior to the final design, and the Village as a government would set an example to be energy efficient at a tim.e when energy was a major consideration for everybody. The Village Manager indicated that the Village had been extremely cost considerate in the design, which was �rhy it was so close to budget. Mr. Couzzo commented that a number of architects had advised that the market had softened, which should provide a better bid and possibly a better price. Mr. Couzzo thanked the Police and Eire Chief for working so effectively with Gee & Jenson. Mayor Genco indicated it would be interesting to find out if Jupiter had the same type of EOC, and if not, the Village could become the focal point in this area in the event of an emergency. Chief Allison echoed Chief Weinand' s comments that this had been very exciting, and commented it now looked li.ke a reality, and that it had been a team. effort among all members of the Department. Chief Allison thanked the project manager, the Village Council, and the public for their support for this building and commented that the whole staff appreciated it . � VIII . Review of Audi.t Report for Fiscal Year 2000 - Edward T, Iiolt, CPA, Nowlen, Holt, and Mi.ner Mr. Holt introduced himself and Daniella Russell from Nowlen, Holt and Miner. Mr. Holt commented the independent audit was required by State Statute and was prepared in conformity with generally accepted accounting principles and with goverxunent principles. Mr. Holt indicated the audit report was 151 pages, broken into an introductory section, a financial section, a statistical section, and a report section, Mr. Holt noted the Village had received the award from the GFOA for financial reporting in the past, for which information would be submitted again this year. Mr. Holt reviewed the table of contents, then referred to page 13, and explained the whole objective in having an audit performed was to have independent auditors come in, audit the financial records to determine whether SPECIAZ VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 12 they were in conformity with generally accepted accounting principles--referred to as an unqualified report or clean opinion-and an unqualified opinion had been issued for the Village. Councilmember Dalack questioned the meaning of the statement "We did not examine the statistical data as set forth in the table of contents and therefore express no opinion thereof." Mr. Holt indicated that a statistical data section was included in the report because it was required in order to be able to get the certificate of achievement, but this information was not audited, and the statement questioned by Councilxnexnber Dalack was a boilerplate sentence required to be in the report. Discussion ensued. Gouncilmember Dalack commented his concept of an audit by an independent auditor was to let him know everything was clean and there was no hanky panky, and questioned whether that sentence detracted from a clean report, to which Mr. Holt responded that every other financial report that was a CAFRA contained the same wording. Village Manager Couzzo explained that in an audit the firm did not examine every single detail, and stated tYie firm had audited the financial statemen.ts according to generally accepted accounting standards and that the Village's financial numbers were presented in the correc� format as required. Mr. Holt explained that the Village could feel comfortable there was not a material misstatement in those records; which was not to sa� that there could not be an immaterial misstatement. Mr. Holt referred to pages 19 and 20 of the combined balance sheet, and the amount of undesignated fund balance of about $2.5 million, which was the amount of money taken in durinc� the current budget gear not budgeted or designated. As a safe guide, the Village should always have about 10% of next year's expenditures or about $500,000 in the undesignated fund, and any amount over that was at the discretion of the Village Council. Mr. fIolt indicated the Village had a very strong position in their fund balance now. Ms. Russell reported that last year the fund balance had been $1,929,000 as indicated on page �1. Ms. Russell explained that from a revenue and expenditure viewpoint, the revenues exceeded expenditures just for operations by $329,000. Vice Mayor Capretta questioned the accepted guidelines for fund balance to which Mr. Holt responded if it dropped below 10°s, or $500, 000, he would tell the Village that they needed to accumulate more funds. Mr. Holt indicated the SPECIAL VILLAGE COUNCIL AND STORMWATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 13 ----------------------- Village Council should analyze why they were accumulating more than the $500,000 in the undesignated fund balance. Vice Mayor Capretta indicated when he came on the Village CounciY the fund balance was low and it had gradually accumulated over time. Th� Vice Mayor questioned what should be done if the fund balance became too high, perhaps 50�, and asked if it would be appropriate to lower taxes. Vice Mayor Capretta commented the assessed value of the Village in past years had beer�. goinq down, but since 1994 it had been going up and now the Village was very financially healthy. The Vice Mayor indicated the Village could now feel comfortable in building a public safety building. Mr. Holt pointed out that the Village Council should go through the exercise of deciding how much should be in the undesign.ated fund and if it was over the amount designated then lowering taxes would be an option. Mr. Holt advised that items to consider would be what projects were under way and what additional services might need to be provided if th.at was what the citizens wanted, and if that came to $1 million, that was the amount that should be kept in the undesignated fund. Mr. Holt referred to the management le�ter on page 137 and the comments of pages 132 and 136. These were reportable conditions and some other items had been included that did not have to be reported but on which the auditors felt should the Village should be foeused. Mr. Holt advised there were 20 management comments and summarized them as tollows: Inadequate segregation of duties because of a small staff, manual Community Development Department records that should be automated; no single person in charge of grant compliance; several weaknesses in the purchase order system--which should be utilized as set up--with one responsible for reconciYing; that cash and bank reconcili.ations should be done timely on a monthly basis and all outstanding checks or adjustments be reviewed; reconcile investments monthly, update fixed assets timely; and use proper utility rates, which had not been done during part of the year. Mr. Holt indicated that on page 40 there was a typographical error where 4o shouid have been 9%. The auditors recommended the Village utilize the utility billing system for al.l aspects of the billing system, reconcile accotixnts receivable customer deposits, and reconcile the receivable module. It was noted that $145,000 had been found as a result of the reconciliation. Mr, Holt indicated these things were all SPECIAL VILLAGE COUNCII, AND STORMWATER UTILITY BQARD MEETING MINLITES May 30, 2001 PAGE 14 ----------------------- reconciled now as af 9/30/2Q00. Differenc�s t�r��e discussed. Mr. Holt indicated the auditors did not want to see these accounts not reconciled in the future, and explained that at the time things occurred was the best time to make corrections since when reCOnciling months later it was not always possible to determine why something had happened, such as water rates being up. Vice Mayor Capretta questioned what could be done to keep from c�ettin� into this position time after time, and commented that when an accounting department was understaffed there was time only to do what had to be done such as payroll, etc. Mr. Holt indicated this same thing had happened two �rears ago and explained that the problem was lack of personnel and not the system. Mayor Genco indicated there were not written, procedures for the way things must be don.e, and with absences and employee turnover things fell a�art. Ms. Russell stressed the importance of the Finance Department and commented that when there were absences for 6 to 8 months of key people and one cl�rk running the department, when 4 people were budgeted and 5 were needed, one could not expect everything to get done. Vice Mayor Capretta commented he only got paid for 11 months last year. Councilmember Dalack commented the 9-page letter in the report was a statement of horror and that none of this had happened on Mr. Couzzo's watch, it all happened during Mr. Bradford's watch. Mr. Holt continued that there were eight examples of items not done properly with regard to accounts payable; tracking of voided check procedures had not been followed; pension accounting funding transactions had not been reconciled until after year end; revenues were not tracked and compared to prior years for analytical purposes; and the Finance Department operated without an�r management or sufficient personnel for an extended period of time, which was a repeat of the situation that occurred in the winter/spring of 1998. Mr. Holt recommended procedures for maintaining adequate personnel, and stated it was critical not to get into this state again. There had been problems with cash management so that it was impossible to tell whether there were idle funds to be invested or not . Mayor Genco commented there had been $2 . 5 million in a non-interest bearing account. Mr. Holt confirmed that in his opinion the $550,000 drawn from the letter of credit was done to meet short terms needs because no one knew there were assets. Ms. Russell explained that SPECIA.L VILLAGE GOUNCIL AND STORNd+IATER UTILITY BQARD MEETING MINUTES Ma.y 30 , 2001 PAC�E 15 ----------------------- historically the Village cash accounts had been used as imprest accounts, the $2.5 million had accumulated over time, and if the department was adequately staffed the Finance Director would have time to analyze accounts and allocate funds for investment. Mr. Holt indicated that in 2003 a calculation would be needed for Series 98 bonds, and that should be done ahead of time. Mr. Holt noted no one person was responsible to insure that the costs and budgets for major capital projects were being monitored, which was important. Mr. Holt indicated he did not see a problem with the Village Manager being authorized to do interfund transfers without Village Council approval because if the Council was getting the report they would see the transfers, and the problem was that the reports were not being received. It was suggested that a maximum dollar limit could be set and a requirement made to report each transfer to the Village Council. Mr. Holt advised the Village Council should review their intent regarding the transfer of $500,000 from an enterprise fund. Mr. Holt noted journal entries were not always documented and retained, which was a critieal item; and retirement gifts were purchased without Village Council approval. Mr. Holt recommended that gifts over a set amount should be approved. Mr. Holt focused on prevention, and noted that same question was asked two years ago and his firm had been asked to prepare a proposal to perform agreed upon procedures of certain items to be checked, or the Village should take that list and perform the procedures monthly, Mr. Holt reviewed the procedures that had been proposed, and encouraged the Village to ascertain that what they believed was happening in the Finance Department was taking place by using this list of procedures. This proposal was submitted in March 1.999, and the cost at that time for a 7-month period was an hourly rate at a supervisor level of $120, which was a discounted rate. Mr. Holt stressed that his firm did not need to perform the procedures, but the Village could do so if adequately staffed. Mr. Holt explained that the concept two years ago was it did not really need to be done because things were caught up. Mayor Genco stated she thought the Village would proceed on that. Ms. Russell suggested a quarterly report to be presented to the Village Council, with which the Mayor agreed. Mr. Holt explained that the accounting was caught up to 9/30/2000 and although some things had been done SPECIAL VILLAGE COUNCIL AND STORMWATER UTII,ITY BOARD MEETING MINUTES May 30, 2001 PAGE 16 ----------------------- through January, many were only through 9/30/2000, and it was now almost June. Mr. Holt stressed that the Villac�e must support the Finance Department and if they said they were not up-to-date they should be given resources to do so before September 30. JoAnn Forsythe, Finance Director, thanked Mr Holt for explaining a challenge that she and Mr , Couzzo had faced in trying to bring the Finance Department to a point where the Village could feel comfortable with the department, and indicated that work would contintte. Ms. Forsythe commented she knew the horror story related in the management letter was very scary, and she �ranted to respond. Ms. Forsythe commented that segregation of duties was very important because the Village did not want the same person who was taking in the money also handing out the money; and to remedy that situation she had made sure that accounts payable was handled by one person, cash reconciliation was done by another individual, and revenue was being looked at by another separate individual. In other less important functions where one person handled more than one duty they novs had to get another person to sign off. Ms. Forsythe explained that automating the collection procedures had really not been the problem of the occupational license person doing the work, it was a problem with the software. During the past month, Ms. Forsythe had been in contact with the software company to resolve those problems. Ms. Forsythe explained that software had been a big problem because many of the programs that were supposed to be running were not running and she had had many discussions with the company. A major problem was that half the system was still on DOS, which did not necessarily send the information to the Windows program.s, and payroll was still on DOS. .All programs were expected to be converted to Windows by year end. .Another problem was the software company beiieved the Villac�e data had been corrupted becaza.se the old system crashed; and when the new software was run, it was believed the whole system had either crashed or it had caused unusual transactions to occur. A zip drive had been purchased so that now the data could be sent to the company to be sure it was all right and the Village could keep working without crashing the system. Ms. Forsythe explained the automated collections would be in place as soon as the software would allow. Also, in this year's budget would be requests for training because staff did not know all the capabilities SPECIAI, VILLACE COUNCIL AND STOR�TER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 17 ----------------------- of the software. Much more information and reports would be possibly after training. Ms. Forsythe reported temporary accounting staff was assigned specifically to research every purchase order and compare it back to the invoices to see how much was left and verified that with the Department Heads, and that would be done every few months. Ms. Forsythe commented that bank accounts were now required to be reconciled monthly, but that work was still behind and unfortunately the person who had been working on that was resigning, so new personnel would need to be trained, and people would be cross trained with utility billing and payroll, allowing the second person to look over the shoulder of the first person to see if they could do anything better, as well as providing backup for vacations, etc. Ms. Forsythe announced that all cash was now in interest-bearing accounts. A new procedure was that before accounts payable was run, cash accounts were verified to be sure there was not too much or tao little in a cash account . �n a monthly basis all cash balances were verified again, and with accounts payable being done every two weeks, that made three times each month as well as right before payroll that the cash accounts were verified. Also, with fixed assets, one individual was designated as �roject accountant, and had verified all assets and listed them in a 3-volume color coded set of manuals. Physical inventory would be done anntxally and if a fixed asset was moved from one place to another the Finance Departmerit would be notified. Ms. Forsythe announced that in the utility billing system everything now agreed to the existing rates, and explained there had been a misinterpretation of a Resolution as to the rate levels, w�ich the attorney had clarified. Ms. Forsythe stressed that this had not been a staff problem, but a clarity problem. Mr. Forsythe commented accounts receivable and customer deposits were now reviewed and reconciled to the general ledger monthly; one person was working to set up an accounts payable system which was taking time because procedures were not in place and the information was not in a central location. A central filing system was now being built up containing all the records with dollars associated. A voided check procedure had been established. Ms. Forsythe explained that for 8 months two clerks, one a utility clerk, had run the Finance Department The second clerk, who did not know what to do, had gone into all the SPECIAI� VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 18 ----------------------- files to see what someone else had done in the past, and had worked very hard, for which Ms. Forsythe expressed her thanks and said that this person had done the absolute best job that anyone could have under the circuxnstances. Ms. Forsythe announced that two things were now being done with the pension accounting and funding, a person was going over the accounts monthly; and discussion was being h.eld with Prudential to see if they could handle some of that work, which the Pension Board and the Village Manager would need to decide after cost was obtained. An individual was now overseeing individual revenues, which unfortunately had been lumped together in one account, and now individual account information was being established so that an�one could see and understand the information. Ms. Forsythe commented that the staffing was very importan.t, thanked Mr. Couzzo for allowing temporary staff to be hired, and explained that some of them had agreed to stay, and that a very strong team was being developed. Ms. Forsythe advised that staff had been working very, very hard and the Village could now feel comfortable, but there was still a lot more to be done. Mr. Holt closed by thankinc� the Village Council for the time they had allowed to be given to this very i.mportant task, and thanked staff for their help. IX. Presentation by Bank of America on Current Loan dptions for Capital Im�rovement Projects Village Manager Couzzo explained that Leslie Downs from Bank of America would give a presentation; and explained that the Village Council needed to determine a financing mechanism for the two major capital projects coming on line. Over the past six months research had been conducted into various financing methods, and it was believed that long term rates were now as low as they probably would be. Mx. Couzzo indicated that bond options had been discussed, and that Ms. Downs would present loan options available through the bank. Leslie Downs described two loan proposals available for the Village. The first was a 20-year loan with a 20-year amortization at 4.8s; the second was for a 15-year loan with a 25-year amortization at 4.75%. Ms. Downs explained that if the Village wanted a longer term, they would need SPECIAL VIL7�AGE COUNCIL AND STORMWATER UTILITY BQARD MEETII�IG MINLT�ES May 30, 2001 PAiGE 19 ----------------------- to utilize bonds; h.owever, a bank laan was a much simpler process and there were not the up-front costs that there were for a regular bond issue. Ms. Downs explained the rates were all tax exempt, bank qualified rates. The bank loan would have a pledge of public service tax revenues or some other revenue stream the Village would like to deClica�� to this loan. The bank would have a li�n on th�� non ad valorem revenue as the funds came in. Village Attorney Randolph advised that what was necessary to pledge revenue would be to adopt the Resolution. Ms. Downs stated the rates were as of today and could be fixed any day prior to loan closing but typically was fixed the day before the closinq. Th index used was the II.S. swap rate as quoted on Bloomberg. Ms. Downs explained that the rate could be fixed when the Village decided they wanted to fix it, and the bank would do an interest rate swap, but there would be a penalty if the Village then chose not to fund the loan or to prepay; and the Village could authorize a party to sign the loan and could also authorize the party to sign so long as it was under a certain percentage rate. The Village Attorney advised this was a presentation and action should not be taken unless it was an emergency. Councilmember Dalack asked i�f it would be proper to place this on the agenda for the next Village Counci.l meeting to authorize a commitment, to which Village Attorney Randolph responded if the Village Council authorized this then staff could be authorized to proceed with preparation of those documents. Mayor Genco questioned if the money could be reinvested unti.l needed far projects. Ms. Downs responded that the Village could invest in SBA funds and earn a higher rate than the loan rate. Mr. Holt cautioned the Village must be very careful not to violate arbitrage rules which prevented the Village from investing at a higher rate, but the Village could work with the bank not to violate those laws, and must be very Careful reqarding time frames. Mr. Holt suggested putting funds aside to fund the debt even though the bank did not want the loan prepaid. Mr. Holt advised the pledge must be adequate to pay the bonds. The Village A�torney suggested enlisting the advice of the Village's bond counsel. Ms. Downs presented another opti.on of getting a variable rate loan for awhile, drawing it down, and then term it out based on an index; however, the disadvantage to that was rates were 1ow now and the Village might want to lock in a long term SPECIAL VILLAGE COUNCIL AND STORl+�nTATER UTILITY BQARD MEETING MINUTES May 30, 2001 PAGE 20 ----------------------- fixed rate now. Ms. Downs indicated that with the 20-term loan with a 20-year amortization, at payment 30 there would be $2.4 million outstanding; while with the 15-year 25-�rear amortization option the outstanding balance at payment 30 would be $3,785,000, with higher debt service. Village Attorney Randolph indicated although he did not believe it was pro�er for the Village Council to act on this tonic�ht that the staff would like to go forward and prepare the documents so that the Council could consider them at their next meeting. Village Attorney Randolph stated that absent an�rr indication that the Village Council did not want to do that, staff would go forward. Vice Mayor Capretta commented an advantage to bonds would be that 30-year bonds could be obtained and debt service would only be $425,000 annuall�r, so future income must be considered; and assuming the Village could afford any of the three debt service options, they must decide how soon they wanted the loan paid off. Vice Mayor Capretta indicated he could see the pros and cons of all three options, discussed the increased tax revenues to the Village, and favored locking this in. The Village Councilmembers expressed agreement to have this on the next agenda. Annual versus semiannual payments of P&I were discussed, and monthly payments were also an option which would lower the interest rate. Mr. Holt advised that the Village had a monthly revenue stream so that doing this on any other basis would cost more money than required and an incredible amount would be saved b�r making monthly payments. Robert Cook questioned whether the Village had considered going out to bid, to which the Village Manager responded he had spoken with other bankers who had indicated that Bank of America's offer was ver�r attractive. Ms. Downs reported that on the bids her bank had fnade all the banks had been within one or two basis points of each other. Mr. Couzzo explained that the term of the loan Bank of America was offering was not being offered elsewhere and the Village was being offered a product that Bank of America had not offered before. Jim Humpage commented the Village had committed to building a public safety facility and a new Village Hall and he would li.ke to see the Village get on the bandwagon and decide tonight to take some sort of forward action to secure these funds at these attractive rates and to have this an the agenda for the meeting on June 14, and get everythinc� done by the holidays. Mayor Genco announced this would be on SPECIAL VILLAGE COUNCIL AND STORNAr�'ATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 21 ' ----------------------- the agenda for the next meeting. Mr. Holt indicated there had been no approval of the audit report. Village Attorney Randolph advised that since it had been indicated this meeting would onl�r be for re�orts that the approval should be considered on the next agenda, and could be a consent agenda item. IX. STQRMWATER UTILITY REPORT Actinc� IItility Director Tom Jensen announced this was the second meeting as required under the Storxnwater IItility Ordinance. The first had been on April 28, when priorities were reviewed. Mr. Jensen explained that the NPDES report had been completed and submitted to to be included in the overall package the middle of June. Al1 NPDES requirements had been met by the Village. Some comments from the State on the third year report was to continue to address weaknesses in the system an.d to develop a stormsaater educational program. A 5-year capital improvement program was included in the packets and Mr. Jensen explained he needed direction to develop a budget for the next fi.�cal year. Mr. Jensen listed the following capital projects, Country Club Phase II Drainage Improvements, and South Cypress Drive which would both continue into the next fiscal year. In next year' s budget, the follow:ing proj ects were proposed: Streetscape on South Cypress, swale construction in the Country Club Point area when sewering, completion of Dover Ditch bank stabilization, and development of sto�mwater education program.. Mr. Jensen indicated he would for grant funds for some of these projects. A project for 2003 was the commencement of Bridge Road drainage improvements. Ms. Forsythe explained that some fun,ds Mr. Jensen thought were budgeted had not been there so if the Village Council wanted to do those issues this year they would need to approve payment from the undesignated fund or let Mr. Jensen knaw so that he could incorporate those items into next year's budget. Mr, Jensen explained he had thought there was $85,000 for Bridge Road and there was only $5,000; and that he could not locate the funding for South Cypress. Mayor Genco expressed her opinion that the money was there. Ms. Forsythe explained the money had not been �ut into the SPECIAI� VILLAGE COUNCIL AND STORMWATER UTILITY BQARD MEETII�IG MINUTES May 30, 2001 PAGE 22 budget because if it was not going to be used in a specific year it was not put into the budget but left in the undesignated fund, and they would take it out if it was needed. Several other department heads had indicated they thought some capital proj ects would roll over and when they came to her for a purchase requisition there was no money there. Mayor Genco inquired whether the members of the Counci.l wanted to put this on the next agenda for approval or wait for a budget identifying everything. Ms. Forsythe recommended staff be allowed to find out the needs for what the Village Council had already said they wanted this year and to have the Village Manager set priorities. Mr. Couzzo expressed his opinion this should be incorporated at budget time. Mr. Jensen indicated Northern had indicated a financing option, and requested conceptual approval. No Councilmembers asked for any other projects to be included. The big project was for South Cypress, which had to be done, and Mr. Jensen should list the other projects in priority as listed to be considered during the budget process. Mr. Couzzo indicated some of the projects might be compl�ted during this fiscal year. Mr. Capretta commented money had been set aside for the South Cypress project for a long time. Village Attorney Randolph commented for the record the Village Council was now sitting as the Stormwater IItility Board and the agenda indicated this was a S�ecial Village Council and Stormwater IItility Board meeting. Therefore, it would be appropriate to adjourn the Special Village Council meeting and reopen as the Stormwater IItility Board meeting. Vice Mayor Capretta made a motion to ad�ourn the Special Village Council meeting. The motion was seconded by Councilmember von Frank, and carried by unanimous 5-0 vote; therefore, the meeting was adjourned at 9:39 p.m. Mayor Genco called to order the Stormwater IItility Board meeting at 9:40 p.m. The roll was called by Acting Village Clerk Betty Zaur. Councilmembers present were: Mayor Geraldine Genco, Vice Mayor Joseph N. Capretta, Council..member Basil E. Dalack, Councilmember Russell von Frank, and Councilmember Sharon Walker. Also in attendance were: Village Manager Michael R. Couzzo, Village Attorney John C. Randolph, and Acting Village Clerk Betty Zaur. SPECIAL VILLAGE COUNCIL AND STORI�b�ATER UTILITY BOARD MEETING MINUTES May 30, 2001 PAGE 23 ----------------------- Villaqe Attorney Randolph advised that the Stormwater � IItility Board was required by Ordinance to meet a minimum , of two times per year, in April and in May, to review the next fiscal year's capital projections list and to set the budget priories for the next fiscal year. Mr. Jensen ' projected some increase in rates since his research indicated am.ounts expected to be received to cover proj ects ' may have been overstated, and an increase of 5�-7% was . possible to cover some projects. Mayor Genco indicated the Village Council would allocate other general funds. Mr. Jensen explained that the Village contribution projected for South Cypress was on the high side, and Northern was looking at that, plus the cost estimates for that project were old. Mr. Jensen. explained that $290,000 was needed, but the streetscape improvements for South Cypress could be delayed until the following year, which would mean that there would be a$12,000 surplus next year. Mr. Jensen asked which projects should be placed in the budget, and was advised to keep all the projects in. Tom Bradford, 44 Chestnut Trail, commented that Bridge Road was in the third year out, and in his opinion should begin immediately regardless of where Village Hall was built because that area needed to be improved and if streetscape improvements were made drainage improvements should be done at the same time. Councilmember Walker guestioned item 2.1 under major findings in the NPDES report which indicated some systems would not meet required levels of service in the future. Mr. Jensen explained that there were older areas in the Country Club area and along Countxy Club Drive. The Village Attorney advised it would be appropriate to consider a motion to tentatively approve the budqet priorities set forth in the Stormaaater Utility report. Counci.lnrember Dalack made the motion; Vice Mayor Capretta seconded the motion, which carried by unanimQUS 5-0 vote. Councilmember von Frank questioned MS-4, which Mr. Jensen explained was a reference to multiple surface areas. IX. ADJOURNMENT Councilm�ember von Frank made a irqtion that the nreeting be adjourned. Vice Mayor Capretta se�onded the motion, wh�.ch , SPECIAL VILLAGE GQUNCIL AND STORMWATER UTILITY $QARD MEETING MINUTES May 30, 2001 i, PAGE 24 __��_��___�____�������� l ` carried by unan3.mous 5-0 vote. The m4tion was therefore �° passed and adopted and the meeting was adjourned at 9:50 � p.m. t � Respectfully submitted, � Betty Zaur Acting Village Clerk � DATE APPROVED: