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HomeMy Public PortalAbout2004-09-21 Regular MeetingCOUNCIL MINUTES REGULAR MEETING - SEPTEMBER 21, 2004 The Regular Meeting of the Bal Harbour Village Council was held on Tuesday, September 21, 2004, in the Council Chambers, at Bal Harbour Village Hall The meeting was called to order at 4 00 p m by Mayor Roth Those present were Also present Mayor Seymour "Sy" Roth Assistant Mayor Peg E Gorson Councilman Howard J Berlin Councilman Joel S Jacobi Alfred J Treppeda, Village Manager Ellisa L Horvath, Acting Village Clerk Richard J Weiss, Village Attorney As a quorum was determined to be present, the meeting commenced 2. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Village resident Nicky Caldwell 3. APPROVAL OF MINUTES: A motion was offered by Councilman Berlin and seconded by Assistant Mayor Gorson to approve the minutes of'the July 20, 2004, Regular Meeting, September 9, 2004, Special Meeting, and September 9, 2004, First Budget Hearing The motion carried unanimously (3-0), with Councilman Jacobi absent, and the minutes were approved as submitted. 4. PRESENTATIONS: Former Mayor Daniel S. Tantleff: By Bay Harbor Mayor Isaac Salver: Bay Harbor Mayor Salver presented former Bal Harbour Mayor Tantleff with a proclamation and key By Village: Mayor Roth presented former Bal Harbour Mayor Tantleff with a proclamation, key, and gavel on behalf of the Village, in recognition of his service as Mayor Chief Hunker presented Mayor Tantleff with a large gavel, on behalf of the Police Department Former Mayor Tantleff thanked everyone for the opportunity to serve the Village as Mayor North Miami Beach Police Department to Chief Thomas Hunker: North Miami Beach Police Chief William Berger presented Chief Hunker with a plaque in recognition of the Village Police Department's assistance, during the on -duty death of North Miami Beach Sergeant Orestes "Oreo" Lorenzo Chief Hunker advised that Chief Berger returned the favor during the funeral for former Police Chief Larry Freeman and thanked the North Miami Beach Police Department 161 l Councilman Jacobi arrived during the Other Business section Regular Council Meeting 09/21 /2004 1 162 Corey White and Robert Mercurio: Chief Hunker presented Mr White and Mr Mercurio with plaques, in recognition of their involvement in summoning police assistance for a drowning surfer Officers of the Month for September 2004 —Captain Kenneth Klingman and Officer James Balikes: Chief Hunker announced that Captain Klingman and Officer Balikes were selected as the Officers of the Month for September 2004, for their heroic efforts in rescuing a surfer during Hurricane Frances Chief Hunker presented them both with a plaque Mayor Roth presented both officers with a check, on behalf of the Village. Officer Balikes advised that he would be contributing his check to the Red Cross Hurricane Relief Fund Mr Treppeda explained that Chief Hunker was also with the officers, at the time of the rescue Mayor Roth presented Chief Hunker with a plaque, in appreciation of his contribution in rescuing the same surfer, during Hurricane Frances Employee of the Month for July 2004 — Mr. Eddie Lopez: Chief Hunker announced that Police Dispatcher Eddie Lopez was selected as the Employee of the Month for July 2004, for his quick actions in having Miami -Dade Fire -Rescue respond to examine Bal Harbour Officer Provenzano, who was having a heart attack Chief Hunker presented Mr Lopez with a plaque Mayor Roth presented Mr Lopez with a check Mr Lopez advised that he would also be contributing his check to the Red Cross Hurricane Relief Fund 5. PUBLIC HEARINGS: None 6. RESOLUTIONS/PUBLIC HEARINGS: The resolution adopting an assessment roll for the Security Program Special Assessment Area was reviewed later in the meeting Councilman Berlin explained that he will be recusing himself from voting on the resolution for the assessment roll A resolution was read, by title, by the Village Clerk, establishing sanitary sewer and water rates for the 2004/2005 fiscal year Mr Treppeda announced that the rates are staying the same A motion was offered by Councilman Berlin and seconded by Assistant Mayor Gorson to approve this resolution. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. Thus becominji: RESOLUTION NO. 663 RESOLUTION OF BAL HARBOUR VILLAGE, FLORIDA, ESTABLISHING SANITARY SEWER AND WATER RATES FOR THE 2004/2005 FISCAL YEAR; ESTABLISHING AN EFFECTIVE DATE. 7. RESOLUTIONS: None S. ORDINANCE SECOND READING/PUBLIC HEARING: An ordinance was read, by title, by the Village Clerk amending sections of the Employee's Pension Plan as Regular Council Meeting 09/21/2004 2 follows 163 ORDINANCE NO. AN ORDINANCE OF BAL HARBOUR VILLAGE, FLORIDA, AMENDING CERTAIN SECTIONS OF THE VILLAGE CODE AT ARTICLE II, "EMPLOYEE'S PENSION PLAN," CHAPTER 13 TITLED, "PENSIONS AND RETIREMENT BENEFITS," TO ADD TO SECTION 13-26 TITLED "EMPLOYEE'S PENSION PLAN -DEFINITIONS," NEW CALCULATIONS FOR THE DETERMINATION OF ACTUARIAL PRESENT VALUE, TO ADD TO THE CURRENT DEFINITION OF "CONTINUING EMPLOYMENT," AND TO ADD A NEW DEFINITION OF "DUAL SERVICE EMPLOYEE;" ADDITIONALLY TO AMEND SECTION 13-28 TITLED "RETIREMENT DATES AND RETIREMENT BENEFITS," TO DEFINE RETIREMENT BENEFITS FOR "DUAL SERVICE EMPLOYEES," PROVIDE FOR ADJUSTMENTS TO THE VILLAGE MANAGER'S MONTHLY RETIREMENT BENEFIT, AND TO REDEFINE SECTION 13-28(J), TITLED, "REQUIRED DISTRIBUTIONS," AND ADDITIONALLY TO AMEND SECTION 13-30 TITLED "DISABILITY" TO ALLOW FOR RULE MAKING AUTHORITY; AND TO ADD AT SECTION 13-39 TITLED "DEFERRED RETIREMENT OPTION PLAN (DROP)" TO CREATE A DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR EFFECTIVE DATE. Mr Weiss recommended that this item be deferred because Mr Cypen, the Pension Attorney, was unable to attend the meeting He requested that since it has been advertised for second reading, the public hearing be opened and it be deferred to a time certain, so it will not have to be re -advertised Councilman Berlin questioned if it's Mr Weiss' opinion that the aspect of this that's applicable to the Village Manager doesn't rise to the level of materiality Mr Weiss thinks that to avoid any appearance of impropriety that Mr Cypen should address the pension ordinance, as well as any questions for the Actuary Mayor Roth opened the public hearing A motion was offered by Councilman Berlin and seconded by Assistant Mayor Gorson to defer this Ordinance, until the October 19, 2004 Council meetinxi. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. 9. ORDINANCE FIRST READING: An ordinance was read, by title, by the Village Clerk, creating Section 2-89 "Defense of Officials in Ethics Matters " Mr Weiss explained that occasionally the Village Attorneys will recommend items for Council consideration, based upon trends that they see in other cities He stated that a number of other cities already have ordinances like this and a number are considering it He stated that the concept is that with the additional layers of scrutiny that Councilmembers face, as a result of having the Miami -Dade County Commission on Ethics, the State Ethics Code, etc that there's a thought in some cities that it would discourage people from running Mr Weiss discussed problems experienced in other cities He explained that the way the ordinance works is that the Village undertakes the defense and if the person is proven innocent, then the Village would have the expense, and if they are proven guilty, then the person (Councilmember or staffperson) involved would pay the expenses Mr Weiss stated that there's already a provision in State law that deals with lawsuits, under Chapter 112, which works the same way He advised that the Attorneys spoke with the Ethics Commission and they didn't have any problem with this Mr Weiss stated that he discussed the concept of Regular Council Meeting 09/21/2004 3 s I. ii 4 mirroring State law, but they didn't have a problem with it Councilman Berlin noticed that financial and gift issues are excluded Mr Weiss thinks that someone not filing proper forms, etc is a personal matter and running for office is outside of someone's job as a Council or staff person He also thought the same thing of financial and gift disclosure Mr Weiss explained that this is dealing with votes, alleged conflicts of interests as a part of votes, etc Councilman Berlin noted that the Village Manager can, at their discretion, afford this defense fund and questioned how that would be done Mr Weiss reviewed page 4 of the Ordinance, which gives standards under which the Village Manager can deny it He thinks that if the Village Manager determines that what happened was so obvious and apparent that it's a violation, then they have the discretion to say that the Ordinance does not apply and the Village will not fund the defense Councilman Berlin clarified that at the end of the day, it's up to the Village Manager's discretion. Mr Weiss agreed Councilman Berlin clarified that there is already law on the books that provides funding for defense of lawsuits and this is an extension of that concept dealing with ethics issues, but not financial or gift ethics issues and not criminal issues Mr Weiss reviewed the budget provision and thinks that a decent amount should be put in the fund understanding that hopefully it won't be used, but if cases are received, then the budget may be exceeded and it would have to be amended Councilman Berlin questioned that if the budget cap is reached, if Council approval would be needed to spend additional money Mr Weiss advised that it would need Council approval He explained that this Ordinance goes to the Department Head level Councilman Berlin clarified that if it was determined that the Official did something unethical, then the Village has the right to get the money back Mr Weiss agreed. Councilman Berlin stated that if the Official hires a lawyer, then often the bill will have a discussion strategy He questioned that if the lawyer sends the bill to the Village for payment, if it would be redacted to protect attorney -client privilege Mr Weiss explained that those bills would not be disclosed, pursuant to Chapter 119, which is the public records law He reported that there's an exception for ongoing litigation Mayor Roth opened the public hearing Babak Raheb, resident —128 Balfour Drive, questioned if this makes the Official immune from any act Mr Weiss explained that this is not creating additional immunity, but wanted to make sure that since there's sovereign immunity in Florida that it would not be waived. Mr Raheb questioned if this will be retroactive, if the Ordinance is passed Mr Weiss stated that it applies "to all actions and proceedings pending upon or instituted after the effective date of this section" (Section 2(f)) He advised that he is not aware of any pending at this time Mr. Weiss stated that this deals with Chapter 112 complaints, Section 211 1 Dade County, or any Village ordinances He advised that the section dealing with lawsuits is in Chapter 112, but it doesn't relate to the Ethics Commission Mr Raheb requested that the Village have someone from the Ethics Commission have their input He also requested a list of the other cities that have this ordinance Dina Cellini, resident— 211 Bal Cross Drive, questioned if this ordinance is more beneficial to the Council, Manager, and Police Chief, than if it didn't exist Mr Weiss advised that it is Ms Cellini thinks that by virtue of the Ordinance itself that there is a conflict for the Council to vote on it Mr Weiss doesn't believe that's a problem, because many of the ordinances that are passed benefit them He advised that none of the current elected officials have any ethics cases pending against them, to his knowledge Ms Cellini advised that they still have terms to fill She stated that they are benefiting by this Ordinance, in ways that the rest of the public would not be benefiting Mr Weiss stated that anyone running for office in the future would benefit from this Ms Cellini questioned if the City of Surfside has a similar ordinance. Mr Regular Council Meeting 09/21/2004 4 Weiss doesn't know He advised that he looks to cities that his firm represents and the ones 16 5 that are doing the most progressive things Ms Cellini questioned Mr Weiss if this was drafted without any direction from the Council. Mr Weiss advised that is correct and reported that he presented this both to Bal Harbour and Homestead He explained this was in response to some issues in Homestead Ms Cellini requested that Mr Weiss elaborate on the wording "malicious, frivolous or groundless allegations." Mr Weiss explained that language was taken exactly out of the State law and there is the exact provision in the County Code, which allows recovery Ms Cellini questioned whom the recovery would be from. Mr Weiss advised that, if the Village feels that a complaint was filed meeting any of that criteria, then the Village has the ability, as it does under County Code and State law, to go after the individual for recovery of fees Ms Cellini clarified that this not only encourages people to run for office, but it discourages people to bring allegations that they feel are warranted Mr Weiss believes that it's intended to discourage people from filing malicious, frivolous cases against officials Ms Cellini questioned who determines if it's frivolous Councilman Berlin doesn't think that Ms Cellini understands the purpose of that provision and explained that it's a subrogation provision and the malicious, frivolous, etc is already a matter of State and local law. He advised that if the individual official defends himself/herself, then they have the right under current County and State law, to sue the complaining party under this standard Councilman Berlin stated that the reason this is included is because if the Village is going to undertake the cost of the defense, then the Village has to have subrogation rights to get the money back He advised that the right already exists. Mr Weiss agreed and advised that under the Dade County Code and Chapter 112, if a person defends an action and they win, then they already have the right to go after the person that filed it, if they feel that it was frivolous, malicious, etc He stated that if the Village is undertaking the defense and is paying for it, then this Ordinance gives the Village the right to do the same thing so that the Village is not out the money Mr Weiss thinks that the people this addresses would have funds to pay back the Village A motion was offered by Councilman Berlin and seconded by Mayor Roth to approve this Ordinance on first reading. The motion carried with the vote as follows: Manor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. ORDINANCE NO. AN ORDINANCE OF BAL HARBOUR VILLAGE, FLORIDA, AMENDING THE VILLAGE CODE BY AMENDING CHAPTER 2 "ADMINISTRATION" BY CREATING SECTION 2-89 "DEFENSE OF OFFICIALS IN ETHICS MATTERS"; PROVIDING FOR THE DEFENSE OF OFFICIALS; DEFINITIONS; REQUEST AND APPROVAL; AUTHORIZATION; RESERVATION OF RIGHTS AND IMMUNITIES; APPLICABILITY; MALICIOUS, FRIVOLOUS OR GROUNDLESS ALLEGATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN CODE; PROVIDING FOR EFFECTIVE DATE. 10. LOBBYIST REGISTRATION REPORT: There were no new registrations 11. REPORTS AND RECOMMENDATIONS: 4, A. MAYOR AND COUNCIL: This item was discussed, prior to the Other Business section B. VILLAGE ATTORNEY: This item was discussed, prior to the Other Regular Council Meeting 09/21 /2004 5 I ti i; Business section C. VILLAGE MANAGER: Request for Approval of Mutual Aid Agreement with the Key Biscayne Police Department: Mr Treppeda explained that the Village has mutual aid agreements with many departments, which spells out the terms under which departments assist each other, when they need backup He advised that Chief Hunker is proposing a mutual aid agreement with Key Biscayne Police Department Mr. Weiss advised that the Village Attorneys also represent Key Biscayne and they have reviewed this agreement from both sides and it's a standard agreement A motion was offered by Mayor Roth and seconded by Councilman Berlin to authorize the Village Manager to sign the Mutual Aid Agreement with the Key Biscayne Police Department The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. Contribution to Greater Miami Convention & Visitors Bureau (GMCVB): Mr Treppeda explained that the Interlocal Agreement with the GMCVB spells out the $100,000 contribution for their promotion of Greater Miami and the Beaches, which is budgeted under resort tax A motion was offered by Assistant Mayor Gorson and seconded by Councilman Berlin to approve a $100,000 contribution to the GMCVB. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. Interlocal Agreement with Miami -Dade County for the Provision of Public Transportation Services: Mr Treppeda explained that the Village Attorney has reviewed this agreement, which the Village is required to have, in order to operate the Bal Harbour shuttle bus A motion was offered by Assistant Mayor Gorson and seconded by Mayor Roth to authorize the Village Manager to enter into an Interlocal Agreement with Miami -Dade County, for the provision of public transportation services. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. Request to Expend Forfeiture Funds: Mr Treppeda explained that Chief Hunker is requesting Council approval to expend forfeiture funds for the following items 1.) Interior Construction Costs for the Police Department Sub -Station $30,000.00 (Located at the Bal Harbour Shops) 2.) Furniture for the Sub -Station $15,000.00 TOTAL: $45,000.00 Mr Treppeda advised that the Owner of the Shops is not charging the Village for the sub- station Chief Hunker thanked Mr Whitman for providing the space to the Police Department A motion was offered by Assistant Mayor Gorson and seconded by Councilman Berlin to approve $45, 000.00 in forfeiture funds, for the above listed items. The motion carried with the vote as Regular Council Meeting 09/21/2004 6 follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. 167 Resort Tax Committee Recommendation: Mr Treppeda reviewed the following item that was recommended for approval by the Resort Tax Committee, at their meeting on July 15, 2004 1) New Tourism Web Site $ 4,000.00 A motion was offered by Councilman Berlin and seconded by Mayor Roth to approve $4,000.00 in resort tax funds, for the above listed item. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. Note The Sheraton Annual Buyer's Summit, which the Committee recommended approval of $20,000 for, will be rescheduled No funds are required at this time REPORTS AND RECOMMENDATIONS: A. MAYOR AND COUNCIL: Mayor Roth discussed the events at Florida International University and suggested the Village Manager post them on the Information Channel B. VILLAGE ATTORNEY: Mr Weiss advised that last year the Village Attorneys received a cost of living increase He reported that in other cities they are getting the cost of living increase that the city employees are getting Mr Weiss explained that they are currently charging $187 per hour, which is significantly lower than their regular rates He requested that the Council authorize the Village Attorneys to get a cost of living increase, on an annual basis, on October 1st at the same percentage that Village employees receive Mr Weiss advised that the Village can stop that at any time it wants A motion was offered by Councilman Berlin and seconded by Mayor Roth to approve an annual cost of livinji increase for the Villajie Attorneys, effective October 1st each year, with the Villajie Manager noting to include it in the bucket process notes. The motion carried with the vote as follows: Mayor Roth ave; Assistant Mayor Gorson aye; Councilman Berlin aye; Councilman Jacobi absent. 12. OTHER BUSINESS: Stanley Whitman, Developer— Bal Harbour Shops, discussed his interest in negotiating the purchase of the Village Hall property He advised that he has had the property appraised by a member of the American Institute of Real Estate Appraisers Mr Whitman stated that he would also ask for variances, so that needed improvements could be made to the Shops He wanted to make it clear that he wants to buy Village Hall, which would not be contingent upon any variances that would be received Mr Whitman explained that in addition to the appraised value of the Village Hall site, the additions that he intends to make would result in millions of dollars, which would be a substantial tax savings for all Village residents He advised that a Miami Herald article deemed the Shops to be the largest non -corporate taxpayer in the County Mr Whitman would like to increase that tax amount He reviewed a conceptual plan that is being worked on Mr Whitman advised that he knows the Council and staff need to review the plan He explained that stores were forced to go to Merrick Park in Coral Gables, because the Shops didn't have the space for Regular Council Meeting 09/21/2004 7 s 168 them Mr Whitman stated that the existing Shops is 450,000 square feet and he would like to add 200,000 square feet He explained that he would like to add premium move screens, with alcohol, food and a $1 5-$20 ticket Mr Whitman stated that whether the conceptual plan is approved or not, he still wants to buy the Village Hall property. He advised that he would provide space at the Shops for the Police Department and City Hall, while a new building is constructed Mayor Roth stated that the Council needs time to review this Mr Whitman requested that it be turned over to whoever needs to review it and to work with him Mayor Roth advised that the Village will study this Mr Treppeda advised that a space needs assessment was done some time ago, which reported that additional space was needed for the Police Department and Village Hall He explained that due to those results, staff had starting looking at a possible project to build a new Village Hall, prior to Mr Whitman's interest Mr Treppeda reported that the site that seemed to be the most favorable is the site where the Public Works building is He advised that Mr Whitman approached staff and they feel that there could be a joint program that may work out well, with what the Village wants and what Mr Whitman wants Mr Treppeda suggested bringing back a price for an outside consultant to do a feasibility study He advised that this would require moving the Public Works department to an off -site location, which some cities do Mr Treppeda explained that garbage trucks are currently being parked on waterfront property Councilman Berlin questioned what type of firms Mr Treppeda will be looking at Mr Treppeda advised that he spoke to the Village Planner, Michael Miller, who provided the names of some companies and Mr Weiss may be able to provide some names Councilman Berlin stated that there are a lot of issues that need to be examined, including the cost He stated that the feasibility study needs to look at the feasibility of building another Village Hall, moving the Police Station, moving Public Works, who will finance this, the timing, the needs, etc Councilman Berlin requested that the consulting firm have the capacity and experience to do that Mr Treppeda will bring a price and recommendation back to the Council, at the next meeting, of a company to do the feasibility study There being one more item of business to come before the Council, a motion was offered bv Councilman Berlin and seconded by Councilman Jacobi to continue the Regular Council Meeting, after the Second Budget Hearing. The motion carried unanimously (4-0), and the meeting adjourned at 5:17 p.m. The meeting was reconvened at 6 31 p m by Mayor Roth Those present were Also present Mayor Seymour "Sy" Roth Assistant Mayor Peg E Gorson Councilman Joel S Jacobi Alfred J Treppeda, Village Manager Ellisa L Horvath, Acting Village Clerk Richard J Weiss, Village Attorney Absent Councilman Howard J Berlin As a quorum was determined to be present, the meeting continued RESOLUTIONS/PUBLIC HEARINGS: A resolution was read, by title, by the Village Clerk adopting an assessment roll for the Security Program Special Assessment Area Regular Council Meeting 09/21/2004 8 169 Mayor Roth opened the public hearing Mr Weiss requested that the comments made by Ms Cellini, Mr Raheb, Ms Kelly, and Ms Webster during the public hearing of the Budget Ordinance at the Second Budget Hearing, be incorporated into the public hearing of the Equalization Board as follows Ana Marie Kelly, resident — 77 Camden Drive, questioned budgeting for Village maintenance to cut, water, and maintain the grass in the residential section, which is deeded to the Civic Association She would like to know when that will be addressed Ms. Kelly stated that Village residents not living within the Security District are not entitled to enter the District Dina Cellini, resident— 211 Bal Cross Drive, questioned why additional money is being budgeted, since the full amount budgeted last year was not used (legal fees) Mr Treppeda explained that he worked with the Civic Association President on the budget He advised that there is a current lawsuit being handled by the insurance company, but the company could later charge the Village for that Ms Cellini questioned if that is litigation being charged to the city at large, because it's involving the act by the Village in creating an ordinance She advised that she was told by former Mayor Tantleff that the funds appropriated to the Security District ($25,000) would be removed and placed under the General Fund Mr Treppeda advised that would not be correct and thinks that it's appropriate to apply to the Security District, because it specifically affects the Security District Mr Weiss explained the reservation of rights that the insurance company is entitled to Mr Treppeda reported that the Security Assessment is the same as last year Ms Cellini stated that the assessment has been this high for a number of years Ms Cellini reviewed 102 525 (Landscaping/Materials) and thinks that amount can be cut from the budget She thinks that the Security Assessment has increased very quickly and at a very large rate over the past 3-4 years, so she doesn't think it's unreasonable to think that now might be the time if there is an excess surplus to reduce the rate and get it back to where it should be Mr Treppeda thinks that the assessment is very reasonable, compared to other districts Ms Cellini questioned if it's as little as it can be Mr Treppeda discussed the issue of a contingency fund and advised that they estimate there will be approximately $30,000 at the end of the year, which isn't 6 months worth of operating expenses Mr Treppeda thinks there should be at least 6 months worth of operating expenses in the Contingency fund Chris Wallace, Finance Director, agreed on the estimate Mr Treppeda stated that $53,000 will be spent for new equipment (cameras, etc ) coming out of the current budget (2003/2004) Ms Cellini discussed the improvements that were supposed to be paid by Kent Security Mr Treppeda advised those items have already been done Sandra Dunn, Civic Association President explained that those items have been discussed at meetings Ms Cellini thinks that there's a lot of fat in this budget and this Council spends money very liberally She thinks there would have been a nice opportunity to show some good will on the part of the Council, to reduce some of the budget and decrease the security assessment Mr Treppeda thinks that $15,000 for a Management Fee is very reasonable and is an amount that could probably be raised alot Ms Cellini questioned the origin of the Management Fee and if it's entirely the Council's decision on what to charge Mr Treppeda stated that it is the Council's decision and the water and sewer funds all pay the general fund a management fee, because staff manages those accounts He stated that the Regular Council Meeting 09/21/2004 9 110 mechanism to argue that is at the Equalization hearing, but the Council has the discretion to make that whatever they feel is appropriate Ms Cellini thinks that the Management Fee is way too much and if they were managing appropriately and effectively, they would be able to reduce the assessment She objected to the items she discussed and she would like some of the money to be removed from the budget, so the residents could enjoy a reduction in the security assessment Mayor Roth stated that he pays that amount for assessments per month Assistant Mayor Gorson doesn't think that there's anything wrong with having money in Contingency. She advised that the amount budgeted won't be used, if it's not needed Mayor Roth thinks that the budget has to be conservative Councilman Jacobi thinks that the Management fee is cheaper than having a firm handle it, which would probably be $60,000-$70,000. Babak Raheb, resident -128 Balfour Drive, discussed Attorney Fees and stated that Mr Treppeda is making a false statement He advised that $23,250 was supposed to be removed from the 2003 Security District Budget and put in the General Fund, because that involved the General Fund, not the District He advised that was also the advice of Mr. Weiss Mr Weiss clarified that he does not have any say of where things are charged and the Mayor would not tell them to put something in or out of the budget He advised that the opinion that they rendered was not ethical opinion regarding voting, it was whether the enactment was properly done and whether it was subject to challenge Mr Weiss stated that the direction of that letter is pointed towards whether the enactment was properly passed and enacted, or subject to challenge He stated that the conclusion was that it was a proper enactment Mr Raheb disagreed and stated that Mr Weiss' conclusion was that there was no conflict of interest and dealing with ethics Mr Weiss stated that those issues had to be dealt with, but the question that they answered was dealing with the enactment of the legislation, not an ethical question He advised that it could have been charged to the Security District or the General Fund and at that point it was up to the Manager on where to put it Mr Raheb discussed Resolution 464 He stated that since the contract between the Village and the Association is no longer valid and a portion of the resolution is the management agreement has been removed, because that contract has been canceled He stated that if the Village wants to charge attorney or management fees, then a new resolution has to be enacted, because resolution 464 has to be canceled Mr Raheb stated that there can't be a resolution, with part of it no longer being valid Mr Weiss stated that he has reviewed it and believes that the agreement provided for cancellation, the agreement was canceled, the security program remained in place and management and attorney fees are ancillary parts of the Village's administration of the Security program and they are properly allowed He thinks those ancillary fees are appropriate to be charged to the Security District. Mr. Raheb thinks that it would be better if 464 was re -written Mr Raheb stated that there is $132,000 surplus in the Security District and questioned where that money is He advised that the Village doesn't having a running account of the surplus Mr Raheb discussed resolution 485 and the half -cent construction fee Chris Wallace, Finance Director, stated that the Village's accounting records have this as an agency fund and, because of that, there is not a fund balance concept He advised that he has given Mr Raheb copies of balance sheets from audited financial statements for three periods, which each show a balance in the Security District fund Mr Wallace stated that it's not a cumulative amount and it changes each year, based upon the revenues and expenses He estimated that the unreserved and undesignated fund balance for this fund Regular Council Meeting 09/21 /2004 10 will be in the $30,000-$32,000 range Mr Wallace stated that the overall fund balance will be greater than that, because the District has collected some money that is reserved additionally, beyond the special assessment that is levied, which is a levy on the permit fees He stated that as of this time, that money has remained unspent Mr Wallace stated that the money is not necessarily unencumbered, because there is a plan and agreement to spend $53,000 of that He advised that the District has a separate bank account Mr Wallace stated that other than using money for the management fee, the Village isn't diverting this money outside of the District He stated that he will be changing how the accounting looks, so people can see it better and won't have this misunderstanding Mr Wallace thinks that this District will have $30,000 unreserved and undesignated fund balance, representing approximately 1 5 months of operating expenditures for the District, which is towards the low side, but not worrisome He thinks that if he can sit down and explain and show them the cumulative effect of that from year to year, it might help them with many of the issues Mr Wallace advised that he can explain where the money is going and how much of it remains Mayor Roth requested quarterly reports, showing what was budgeted and what was spent, for the Village and the Security District Mr Wallace advised that he will do that for all of the Village funds He stated that he can also do that at any point in time, if needed Mr Raheb discussed the 2004 budget and the revenue collected He thinks that there will be plenty of reserves, if the Council reduces the assessment Mr Raheb requested to see the bills totaling $25,000, for the maintenance of equipment Mayor Roth thinks that the District has one of the lowest assessments He advised that the money isn't going to be thrown away Mr Raheb stated that he doesn't agree that the person that Mr Treppeda is speaking with is the representative of the Civic Association Sandra Dunn, resident — 208 Park Drive and President of the Civic Association, advised that she met with Mr Treppeda and reviewed the budget She reported that she thinks the budget is fair, based on inflation, possible lawsuits, people calling the Village Attorney for Security District issues, landscaping, and management fees Ms Dunn stated that everyone wants to live in a beautiful community, but they don't want to pay She advised that if a management company was hired, they would be paying more than $1,250 monthly for the services that are needed Ms Dunn thinks that the Village is doing a good job Mayor Roth thinks that if the maintenance is the same as the prior year, then they are doing well Rhea Kelly, resident— 77 Camden Drive, advised that she has reviewed the budget and stated that 90% of the payroll goes,to city workers that maintain the Village's residential section She reported that the owners on Collins Avenue have no right to walk in the residential section and enjoy the parks and landscaping, because it's owned by the Civic Association Ms Kelly stated that they don't have access, but tax dollars are being assessed for the maintenance of that section Assistant Mayor Gorson stated that it's part of the Village Gabriela Webster, resident— 30 Park Drive #15, clarified that due to the rescission of the Management Agreement, they cannot have a representative speak on their behalf Mr Weiss stated that there is a law and a set of circumstances He explained that it was never contemplated that they would meet each other, so they are speaking with the Ethics Commission to try to find a way so that the representative from District #5 can vote, in compliance with the ethical laws and the residents can be fully represented Ms Webster Regular Council Meeting 09/21/2004 11 .4/ questioned if the Village should be looking at creating a new Management Agreement or some parameters for the management for professional services Mr Weiss explained that the Security Program was created at the request of the people in the residential area by the Village He stated it was done because they had no way of collecting Mr Weiss reported that the Village chose at one point to have the administration done through this contract, but at this point the Village has assumed it He stated that as part of the budgetary process, there is an allocation of management cost Darcee Siegel, resident — 169 Camden Drive, questioned what the style of the case is for the lawsuit that has been mentioned Mr Weiss responded that he doesn't have the style of litigation, but it's Mr Babak versus the Village of Bal Harbour Ms Siegel questioned how many residents pay their assessments every year Mrs Horvath responded that approximately 5 residents had liens placed against them for non-payment of the assessment last year Ms Siegel questioned if the Village forecloses on those assessments Mr Weiss advised that they haven't filed a foreclosure action to his knowledge Mr Treppeda stated that when someone tries to re -finance, then that's when they usually pay it Ms Siegel thanked the Council and thinks they're doing a great job Gabriela Webster, resident — 30 Park Drive #15, questioned if the rule that was passed regarding billing all homeowners, including apartment owners, will be applied Mr. Treppeda stated that the apartment owners will be billed individually Mrs Horvath agreed A motion was offered by Mayor Roth and seconded by Assistant Mayor Gorson to adopt this Resolution. The motion carried with the vote as follows: Mayor Roth aye; Assistant Mayor Gorson aye; Councilman Berlin absent; Councilman Jacobi aye. Thus becoming: RESOLUTION NO. 664 RESOLUTION OF BAL HARBOUR VILLAGE, FLORIDA, ADOPTING AN ASSESSMENT ROLL FOR THE SECURITY PROGRAM SPECIAL ASSESSMENT AREA; PROVIDING FOR AN EFFECTIVE DATE. ADJOURN: There being no further business to come before the Council, a motion was offered by Assistant Mayor Gorson and seconded by Mayor Roth to adjourn. The motion carried unanimously (3-0), with Councilman Berlin absent and the meeting adjourned at 6:35 p.m. ,--) ‘.1— fr4.1,b, cf-t,,, 7-C-- I' Ma , or Seymour Roth Attest r ` r f ff ,_:.:::S:f:;.t 11..,--k--4:-.3--i,------- t:, Ellisa Horvath, CMC Acting Village Clerk Regular Council Meeting 09/21/2004 12