HomeMy WebLinkAboutDocumentation_Regular_Tab 8d_03/07/1996 GABRIEL, RC)EDER, SMIT�� & C4M}'ANY
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feb�uary 29� 1996
Thotttas (3. 8rodlad. Vitlsg� Mat�agar
Vitiage af Tequests
P.O. 8aoc 3273
357 T�quasta Orive
Tequesta. Flotida 33469-0273
Re: Ea�ly Ratifement 1nc�Nve Prc�ram
f ?�:T�T�: _�r?: u:'�� A
A� requested, we are submitti� a proposal to assist the YIIaQa in desi�in� an Euly Retitema�t
{noentiw Plan �ERIQ). We und��tand d�a# tfia Yifl�a wishea �a ot�er oertain Inc�ntiv�es to okler, tor�
aervite employees 1bt th�m �o rotin. Thoe» «tsploy�e�s wtto elxt to tetlro wouk! then be neptaoed b!I
employee� aml� bwor aom�aHon•
The �eneral outcome o�f wch an EaIP i� that t1n savit�+ M payr�oll exc:oad the value of ir�csnthr�s tltst
ate pra�E. Thers i� thus a net fi�ta�cial benefit M the empioyer.
We pr+opose to prowde tl�e bitowing servicas:
♦ Ta�et tt�e csbe�ory af �mploy�ees bo whom tfie i�aantiv�s woufd be ottsred.
• as�, inca++tw.s tnac t�opvf�uNy win b. amadn+n. «,au� t� tar@eLe�a em�loyeas bo
�cept tt�e vlTet, yat oot so �narous ui b elimi� pot��tial savin�t.
♦ Esttntat� tho tina�ial impsd af Ut� proposed ERIP.
Wa astin�abe thst onr tee !br �is qvjeci wNl �e I�om t►2.500 �c 53.000. This a�titn�be do�s not
induds a cakuladon d ao�xued psnsioe� bsaelits ava�abis �o each tar�eted person i�orn ths Fiaida
Ratlretnent S�t+ tFR�. We antidp� t�nt FRS rr�t ntrioe tt�sa cakutations. How�. � tl�ay► +a�s
nd rnsd� on s tlrt�l b�sis. wt mWd c�idll� � e�tMaA�d FR.S ber�it for e�ch peesoti. Our cfia�e
fb� tlMei ce� wa�uld 6e 5+901� Mch p�son. The�e pra6�abhl vrili t� about iS err�lOyMs
subject ba tt�t qicubtio�a.
i'le� co�tact t�s if tt�a aro eny que�lo�s.
Slncenely You�s�
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J. Stephe� Psimqul�t
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Memorandum
To: Villaqe Council
From: Thomas G. Bradford, Village Manager l�..jz
Date: 03/O1/1996
Subject: Early Retirement Incentive Progra�a; Aqenda Itaea
As we discussed in the latter part of calendar year 1995,
circumstances are such that an Early Retirement Incentive Program
(ERIP) would now seem to have financial merit for Tequesta to
pursue.
As indicated in the attached correspondence from Mr. Palmquist,
the intent of an ERIP is to replace employees that choose to
accept the incentive to retire with employees earning lower
compensation. The goal of the ERIP is that the savings in
payroll should exceed the value of incentives that are provided
so that the employer receives a net financial benefit.
The fee from the Consultant to provide this service is $3,000.
However, this does not include the calculation af accrued pension
benefits on the assumption that the FRS will do the same. I have
spoken to the FRS and they have indicated that they will do the
work but only reluctantly. Therefore, I am requesting that an
additional $90 for each potential retiree be allocated to cover
this expense, in the event that the FRS does not complete their
work in a timely manner. Estimating a potential of 15 retirees
requires another $2,350.
In addition to the abave referenced funds, there is the
possibility that I will need to secure the services of our Health
Insurance Consultant, Black Ink Associates from Coral Gables,
Florida, in the event that the ERIP Consultant believes that
health insurance alternatives v►ill be needed to entice
retirement. Therefore, I estimate up to an additional $1,a00 to
cover this expense. All told, this ERIP Project could cost
$5,350, but if succeesful, could save the Villaqe tens of
thousands of dollars.
It ia recommended that the Village Council approve the Gabri�l,
Roeder, Smith and Company Proposal in the amount of $4350. •
TGB/krb •
Attachment
_--�A
Village Council Meeting Ageada
June 13, 1996 0
Page 5-
*� G) Consideration of Professional Services Agreement
with Gee & Jenson of West Pa1m Beach, Florida, in
the Amount of $11,000 for Design and Construc�ion
- Phase Services for the Dover� Ditch Dredging
Project, Having a Proposed Budget Allocation of
$1I0,000. (Staff Recommends Approval)
* `�H) Consideration of Professional Services Agreement
with Gee & Jenson of West Palm Beach, Florida, in
the A.mount of $22, 000 for Design and Construction
Phase Services for the Seabrook Road North Drainage
Project, Having a Proposed Budget Allocation of
$139,000. (Staff Recommends Approval)
* �Z) Consideration of Professional �Services Agreement
with Gee & Jenson of West Palm Beach, Florida, in
the Amount of $13,000'for Design and Construction
Phase Services for the Tequesta Drive Drainage .
Diversion Project, Having a Proposed Budget
A1location of $70,000. (Staff Recommends Approval)
*�J) Consideration of Approval for Payment of Legal Fees
in the Amount of $337.27 to Pickett, Fanelli.&
. O'Toole, P.A. for Up Forfeiture Proceedings
on 1995 Chevy Pick-Up � Truck, to be Paid from the
Special I,aw Enforcement Trust Fund Account. (Staff
" Recommeads Approval) . �
��� e=� �K ) Consideratiori of Approval of Proposed Teguesta
� Early Retirement Incentive Program (ERIP). (Staff
Recomaaends Approval ) � . .
RII. UNFINISHED BUSINESS
l a d o��� �--A ) Ordinance - Second Reading - An Ordinance of the
Village of Tequesta, Palm Beach County, Florida,
Authorizing the Creation of Safe Neighborhood
,, Improvement Districts; Providing for 5everability;
Providing for Repe al of Ordinances in Conf lict;
�Providing for Codification; Providing an Effective
Date . ( Staf f Recommends Approval )
f �d,��'�CC� —B) Ordinance - Second Reading - An Ordinance of the �
Village Council of the Village of Tequesta, Palm
Beach County, Florida, Amending Chapter 2 of the
� Code of Ordinances at Article IV, Boards and
Corn� by Rescinding Division 2, Code
Eniorcement Board, in its Entirety; Providing a New
Chapter 2, Article IV, Division 2, to Be Entitled
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Village Council
Meeting Minutes
June 13, 1996 �
Page 29 •
Bradford also explained that the Village was providing
iunding of $44,000 from the Improvement Bond Revenue
E�nd to the�Capital Improvement F�.nd for the purpose of
providing a new roof on the Teq�esta Recreation Center,
former?y known as the JTJC Building. Village Manager
� Bradford also exp2ained that in the course� of
presentations to the Village Council about the fund
balances needed to acco_� the Capital Improvement �
Fund, and/or estimated General Fund balances,.all were
done on the assu.�nption that the payback of the loan
which' was made to the General Fund from the Water
Department for the excess funding needed for the
Tequesta Branch Library would be waived by the Village.
Council. Councilm.�mbers stated they had no problem
with that; thus authorizing the liability of $36I,100
to be removed from the Capital.Improvement Funci and the
transaction adjusted to reflect a transfer oi funds not
requiring repayr.lent.. .
Attorney Diaz read Resolution �No. 28-95/96 by title
onlv. .
- Vice �Mayor Schauer tnade a rriotion to approve Resolution
28-95/96. Councilmember Meder seconded the motion.
The vote on the motion was: '
Ron ^s. Mackail - for
Elizabeth A. Schauer - for
Joseph N. Capretta • - for
Carl C. Hansen - for
,. Michael R. Meder - for
The motion was therefore passed and adopted.
K) Consideration of Approval of Proposed Tequesta Early
Retireirtent Incerctive Program (ERIP) , (Staff Recomm�nds
Approval)
Village Mar.ager Bradiord poir.ted out tnat this was a
very important i�em with serious inplications for those
eriployees recon*nended for the program. The Vil? age
P4anager explained that the primary purpose for the
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Village Council
Meeting Minutes
June 13, 19g6 �
' Page 30
program was to save the Village and the taxpayers
roney, and to avoid a tax rate increase, particularly
in the next fiscal year, and that the program would
only work if ertployees did in fact retire �and were not
replaced. The proposal was to offer to any employee
with 25+ years of service either six months salary or
S75Q for each year of service, whichever was greater.
Two employees, Marvin Brown, the Public Works Crew
Leader, and Police Chief Car? Roderick, qualified under
the proposed criteria. Vi�lage Manager Bradford stated
� for the record that -in the� event this program. was
approved by the Village Council and in the event that
� Ch?ef Roderick accep�ed the program offer that Vill�age
Manager Bradford's recom�nendation was.not to fill the
position,.but to change the nu.inber of Police Department
administrative employees from three to two, and to
promote current Ass?stant Police Chief Steve Allison to
Chief of Po�ice. Total c.ost to the ViZlage would be
- ��9,370 if the program were adopted, and total savings
to the ViZlage during the-upcoming fisca]. year would be
$Z?b,651, which is a 136� return on the early
. retirement investr.ient, and would leave th e V� l l. a g e w i t h
Sc0,993 in ?ts Co?:tpensated Absences account to pay for
accrued vacations and sick Ieave for any future
. emp? oyees w�o Ieit . enployrnent. �Iiil.agz Manager
Bradz"ord reported that �hz total cost if and when the
two eQ a� oyees ur.cier discussiori � eit the ti'illage would
be S.,l, 920 which would be their early retire�r,ent
ince�tive plus� their est_?na�ed accruals. Village
Manager Bradford reported if the two employees took the
ofrer prior to �uly 1, 1.996 their vacation accruals .
would be counted toward coinpensation in the FZorida
'� Ret?re�ent Syste� so that their average co�;pensation
ancz their retire�r�en� bznefit would be increased.
Village Manag2r Bradford reported th�t Cniei Roderick
appeared to be leaning �oward accept?ng the o�fer.
Both would bz given a separation agree�rent whicn
sp�lied out the specii�cs o� the program, Chief
Roderick. had requested ti�at the Village cor_sider that
the proceeds be applied by tne Villagz dirzctly to buy�
back tine th�t he had in �he Florida Retirenent Systen
which did r_ot accrue to him at the Public Sa�etv
Officer rate, which would in essence cause him to
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f Village Council �
' Meeting Minutes
June 13, 1996
Page 31 �
- receive a full retirement, rtr,
desire that the ViZla e.se� u Br � had indicated his
� L P progr.am where his
incentive funds would be held in a special trust
account to be used to pay for health insurance premiums
for both hirn and h? s�wife for the next thirty mon.fihs.
Village Manager Bradford stated that if these two
employees accepted the offer that it could mean the
difference between a budget requirin
increase and a budgefi wh�ch would have�a nillage rate
increase.
Counci?me�rber Meder cruest?oned the exit departure dates
for �ir. Brown and Chief Roderick. Village Manager
Bradford explained that they would be presented with
the agreement anci under l.aw wou�d have 45 days to
decide; and then seven add?tional�days after signing to
rescind; however, it would be to their advantage .to
. retire before July I, 1990, as explained earlier.
Village Manager �Bradford responded to Counci�member
Hansen that l�r. B? work would be contracted at
a Iesser cost, which was cheaper and normally worked
� we�l as long as a core of personnel existed to oversee
�he work of subcontrac�ors. Councilmembzr Capretta
sLgges �ed that ; t wou? d b2 z good idea to offer the
e�ployzes this early retirement incentive, and that the
Vi.11age should ? ook a� contractin out
.areas . Councilme�� er t,ed�r cruestioned wh � er the�cost
� was too expensive to ofier t he incentive prograra to
workers with 20-� years of• service to which VilZ.Q�2
I�janager Bradford respondea tha� was true. Vice Mayor
Schauer corti that �n ear-ly retirement incentive
� � Pr'Og'r'e.-'i'• WdS thc
reason for Mr. Picklesimer's
retire�znt. Councilmzmbers expressed to Chief Roderick
�nafi they would miss hin ii he chose to take advantage
of the prograra.
Vice Mayor Schauer made a rriotion to a
Retir�nt Incenti.ve Pro ram ERIp PprOVe the Early
J ( ) per agreement with
Vz�Zage Manager Bradford. Councilm�r�r Meder second�d
the motion. The vote on the motion was: �
Ron T. Mackail - for
• , r ' . .
�Iage Council .
�eting Minutes
�rine 13, 1996
page 32 .
Elizabeth A. Schauer - for
Joseph N. Capretta - � for
Carl C. Hansen - for
`:.:�° Michael R. Meder - for .
J �� .
The motion �ras therefore passed and adopted,
'� XII• UNFINISHED BUSINESS
',,
(B) Ordinance - Second R,eadin �
Village of T g' an Ordinance of the
equesta, palm geach County, Florid.a,
Amending Chapter 2 of the Code of Ordinances at Article
. IV, Boards and Commissions, b
Code Enforcement Board, in i s Entir � g-Division 2,
New Chapter 2 % praviding a
, Az'ticle N, Division 2, to be Entitled
� Codes �Enforcement; Providinq for a Special Master,
Providing for RQpeal of Ordinances . in
Providing. for . Codi,fication; Providin Conflict; .
Date. (Staff Recommends g- � Effective
APP�'oval.) .
P_ttorney Diaz read tne above referenced Ordinance on
Second Read?ng by title only.
Tom Little, 486 Dover Road, stated that tne Special
Master woulci D2 act?ng as a� judge and under the
Ordiriance would control all eight�en points in the coci�
boo�k and he did not see how anyone could handle 5J
pzop?e a day. Mr. Little sugqes�ed a sunset provision
be added to the Ordinance so that i� costs, in total,
exceed $5, 000 annually the Special M=ster systeri woul�d
,� revert back to the Code Enforcement Board. Mr. Little
expressed concern �hat this was merely setting up
. ano�her govern:-�ent bureaucracy, and advised that the
V�?lage Council look more closely at the cost of th?s
matter, and delay a.doptio:? p2nding iurther study.
Councilme�*a:�er Mecie?- stated that h� appreciated rir.
Little's corli but did not sha=z his opinions.
Counc?lmertber Nansen co*n.�ented that several nonths ago
he had contacted three nearby nunicipalities wnich had
already adopted the Specia? Master System and had
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� - VILLAGE OF TEQUESTA
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Post Office Box 3273 • 357 Tequesta Drive
� Tequesta, Florida 33469-0273 • (407) 575-6200 �
.
� � � Fax: (407) 575-6203
,'
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f,C tOUµ�
June 17, 1996
Mr. Marvin Brown HAND-DELIVERED
P.O. Box 1412
Jupiter, Florida 33468
RE: Village of Tequesta Early Retirement Incentive Program
Dear Mr. Brown:
At the Village Council Meeting on June 13, 1996, the �illage
Council approved a Tequesta Early Retirement Incentive Program,
providing any employee with 25 years or more of Village service
with 6 months of salary, or $750 per year of service, at the
employees' choice, in return for their early retirement. Based
upon the foregoing, the maximum incentive that you can receive
from this proposal is $19,500. The offer of retirement incentive
shall end on August 9, 1996. This payment would be in addition to
any sick leave and/or vacation leave accruals that you may be
entitled to from the Village.
This offer applies to you, Marvin Brown, Public Works Crew
Leader, age 63, and to Carl Roderick, Chief of Police, age 54.
There are no other employees in the same job classification or
organizational units who are eligible for the Program.. Attached
you will find a list of the ages of Village employees who are not
eligible for the Tequesta Early Retirement Incentive Program.
This offer is conditioned upon your execution of the attached
Separation Agreement and Release, which sets out the terms and
conditions that would apply to both you and Tequesta should you
choose to avail yourself of the Early Retirement Incentive
Program. Please review this Agreement closely and feel free to
seek the counsel of an attorney of your choice in making this
important decision.
This Early Retirement Incentive Program is a one-time offer that
will remain open, until August 9, 1996. You should be aware,
however, that it is to your financial advantage to make this
election and receive your accrued vacation pay prior to July l,
1996. If you do so, the Florida Retirement System, of which you
are a member, will include these payments in its calculation of
your average annual compensation, thereby boosting your
retirement income. Please give due consideration to this
important fact. You should feel free, however, to consider this
offer for as long as you want before the August 9, 199b deadline.
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Page 2—
The terms of the Tequesta Early Retirement Zncentive Program have
been designed to be mutually beneficial to both you and Tequesta.
Regardless of your decision regarding this offer, the Village of
Tequesta will honor the same. Should you choose not to avail
yourself of this Program, Tequesta will look forward to your
continued employment with the Village, as in the past.
If I can answer any questions you have relative to this important
decision, please feel free to see me at your earliest
convenience.
Sincerely,
Thomas G. Bradford �
Village Manager �
TGB/krb • • 9
Attachment �
c: Village Council
Bill C. Rascavelis, Director of Finance
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