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HomeMy Public PortalAbout09/25/2012 * Special MeetingMINUTES OF THE PUBLIC HEARING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM ON TUESDAY, SEPTEMBER 25, 2012 AT 5:01 P.M., IN COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. I. Call to Order. Mayor Orthwein called the Meeting to order at 5:07 P.M. II. Roll Call. i1 Present and Joan K. Orthwein Mayor �i Participating Tom Stanley Vice -Mayor Muriel Anderson Commissioner W. Garrett Dering Commissioner (Via Telephone) Robert W. Ganger Commissioner Also Present and William H. Thrasher Town Manager Participating Rita L. Taylor Town Clerk John Randolph Town Counsel Garrett Ward Police Chief III. Consideration of Adopted Tentative Millage Rates and Adopted Tentative Budgets for Fiscal Year 2012 -2013. A. Explanation and discussion of Tentative Millage Rate as compared to the rolled back rate. Mr. Thrasher said the calculated Rolled -back Rate for the Town of Gulf Stream for Fiscal Year 2012 -2013 is 2.8939. He said he provided a Budget with a proposed Millage Rate of 3.1, which is 7.12% higher than the rolled -back rate. Mr. Thrasher said the Budget is balanced at $2,966,929, and he said the tentative budget has one material change where, as requested by Commissioners Ganger and Dering, we are showing language to build a reserve, which is $50,794 in this budget. He said the tentative budget in as previously discussed, with the exception of some very minor changes is a couple of lines items. B. Comment from the Commission and the Public. Commissioner Ganger asked if the Capital Budget is going out in time. Mr. Thrasher said it is a guesstimate which provides a model for the Fund Balance, trying to plug in capital projections, anticipated revenues and to show where the Fund Balance is heading in time. He said Capital is linked to the model as well as other line items in the current budget. Commissioner Ganger asked about the increase in computer upgrades for the Police Department on Page 7 under Town of Gulf Stream Capital Maintenance, which went from $6,500 to $95,000. Mr. Thrasher said he plugged in the number in the event of a blowout; however, he is not anticipating anything. He said there was discussion with Palm Beach County concerning the 12.50 money and there seemed to be a challenge for municipalities having their own communication systems, but he said it has been resolved. Mayor Orthwein asked Mr. Thrasher if he received an estimate for the accounting software upgrade. Mr. Thrasher confirmed that, but he said it has been complicated by a proposal from the provider concerning offsite hosting. He said it was not anticipated and he is researching the matter to present a proposal to the Commission on October 12th Vice -Mayor Stanley said the City of Los Angeles was on Google for about Town Commission Public Hearing September 25, 2012 at 5:01 P.M. Page 2 five years with their email. Last year they changed their privacy policies and had to cancel their contracts and return to in- house, which cost thousands of dollars. Mr. Thrasher said he read an article by the Co- Founder of Apple, Steve Wasniak, where he predicts major issues with off -site services within five years. Mr. Thrasher said he believes in home rule government, meaning we control our destiny, and he said when you go off -site you definitely give up control. He said our server's C capacity has been verified and we are good for a few more years, and he said he will have a presentation prepared for October 12tH There was no public Comment IV. Adoption of the General Fund FINAL Millage Rate for Fiscal Year 2012 -2013. Commissioner Ganger moved and Commissioner Anderson seconded to adopt the General Fund Final Millage Rate of 3.1000 for Fiscal Year 2012 -2013. There was no discussion. All voted AYE. V. Adoption of the FINAL Budgets for Fiscal Year 2012 -2013. A. General Fund Commissioner Ganger moved and Vice -Mayor Stanley seconded to adopt the Final General Fund Budget in the amount of $2,966,929 for Fiscal Year 2012 -2013. There was no discussion. All voted AYE. B. Enterprise Fund (water) Commissioner Ganger moved and Vice -Mayor Stanley seconded to adopt the Final Water Fund Budget of $940,000 for Fiscal Year 2012 -2013. There was no discussion. All voted AYE. VI. Resolutions for Adoption. A. No. 012 -11; A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE FINAL LEVYING OF AD VALOREM TAXES FOR THE TOWN OF GULF STREAM GENERAL FUND FOR FISCAL YEAR COMMENCING ON OCTOBER 1, 2012 AND ENDING ON SEPTEMBER 30, 2013. Resolution No. 012 -11 was read in its entirety, which states that the Town Commission hereby adopts the General Fund Final Millage Rate of 3.1000 mills, the final levy of 3.1000 mills that is 7.12% higher than the rolled -back rate which is 2.8939 mills, to fund expenses for the Fiscal Year 2012 -2013. Commissioner Ganger moved and Vice -Mayor Stanley seconded to adopt Resolution No, 012 -11. There was no discussion. All voted AYE. �i B. No. 012 -12; A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE GENERAL FUND FINAL BUDGET FOR THE TOWN OF GULF STREAM FOR THE FISCAL YEAR COMMENCING ON OCTOBER 1, 2012 AND ENDING ON SEPTEMBER 30, 2013. Resolution No. 012 -12 was read in its entirety, which states that the Town Commission hereby adopts the General Fund Final Budget of $2,966,929. Commissioner Ganger moved and Vice -Mayor Stanley seconded to adopt Resolution No. 012 -12. There was no discussion. All voted AYE. Town Commission Public Hearing September 25, 2012 at 5:01 P.M. Page 3 C. No. 012 -13; A RESOLUTION OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, ADOPTING THE FINAL WATER FUND BUDGET FOR THE TOWN OF GULF STREAM FOR FISCAL YEAR COMMENCING ON OCTOBER 1, 2012 AND ENDING ON SEPTEMBER 30, 2013. Resolution No. 012 -13 was read in its entirety, which states that the Town Commission hereby adopts the Water Fund Final Budget of $940.000. O Commissioner Ganger moved and Vice -Mayor Stanley seconded to adopt Resolution No. 012 -13. There was no discussion. All voted AYE. Mayor Orthwein mentioned the Luncheon for Fred Devitt, III, who recently resigned from his Commission seat. She said Mr. Devitt indicated he is available any Tuesday or Wednesday. Mayor Orthwein asked the Commissioners which day would be best for them. Commissioner Dering said he would not be back for the October Commission Meeting; however, he said he would return to Gulf Stream the following week and does not have a preference. Mayor Orthwein asked if Tuesday, October 23rd at Noon at the Little Club is good for everyone. Mr. Randolph said he would be out of town. There there were no other conflicts. The Luncheon was set for Tuesday, October 23, 2012 at 12:00 Noon at the Little Club. VII. Adjournment. Commissioner Anderson moved and Vice -Mayor Stanley seconded to adjourn the Meeting. There was no further discussion. All voted AYE. Mayor Orthwein adjourned the Meeting at 5:27 P.M. Gail Abbale Administrative Assistant Cj MAYOR: VICE MAYOR: COMMISSIONER Joan K. Orthwein Thomas M. Stanley Muriel J. Anderson W. Garrett Dering Robert W. Ganger September 19, 2012 SPECIAL MEETING BEING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, AT THE CALL OF THE COMMISSIONERS, ON TUESDAY, SEPTEMBER 25, 2012 AT 4:00 P.M., IN THE COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. A r_7mnn I. Call to Order. II. Pledge of Allegiance. III. Roll Call. IV. Request to Increase Capitalization Threshold. V. Utility Repair & Maintenance Options. VI. Adjournment. SHOULD ANY INTERESTED PARTY SEEK TO APPEAL ANY DECISION MADE BY THE TOWN COMMISSION WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, SAID PARTY WILL NEED A RECORD OF THE PROCEEDINGS, AND FOR SUCH PURPOSE, MAY NEED TO INSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. F.S.S. 286.0105 C i MINUTES OF THE SPECIAL MEETING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, AT THE CALL OF THE COMMISSIONERS, ON TUESDAY, SEPTEMBER 25, 2012 AT 4:00 P.M., IN THE COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. I. Call to Order. Mayor Orthwein called the Meeting to order at 4:05 P.M. 11. Pledge of Allegiance. The Pledge of Allegiance was led by Mayor Orthwein. III. Roll Call. Present and Participating Also Present and Participating Joan K. Orthwein Tom Stanley Muriel Anderson W. Garrett Dering (Via Telephone) Robert W. Ganger William H. Thrasher Rita L. Taylor John Randolph Garrett Ward Earl Harvel of Harvel Utility Const. Van Williams of Deevan, Inc. Mayor Vice -Mayor Commissioner Commissioner Commissioner Town Manager Town Clerk Town Counsel Police Chief Water Util. Consult. Water Util. Consult. IV. Request to Increase Capitalization Threshold. Mr. Thrasher referred to his Memorandum saying that the Town has a capitalization threshold of $1,000 on all asset classifications and he recommended that the capitalization threshold be changed to: $10,000 for Building; $5,000 for Equipment; $10,000 for Infrastructure; and, $10,000 for Water Infrastructure. He said this option would eliminate some of the detail work, and he explained that there are depreciated items worth $750, we have 5 years that we actually do the calculations for depreciation, put it into accumulated depreciation and carry it forward to following year. Mr. Thrasher asked for Commission support. Commissioner Anderson asked if our accounting firm stands by this recommendation. Mr. Thrasher said he spoke with Ron Bennett of Nowlen, Holt & Minor who said this is basically a policy decision and it is not unique. Commissioner Anderson moved and Commissioner Ganger seconded to approve increasing Capitalization Threshold. There was no discussion. All voted AYE. V. Utility Repair & Maintenance Options. Mr. Thrasher said one of the options presented is to bring the utility work in -house and another is a Hybrid option. He said Earl Harvel of Harvel Utility Construction is present to discuss contract renewal with a 10% rate increase. Mr. Thrasher said Van Williams of Deevan, Inc. is also present to talk about the utility service his company can provide. He said Deevan provides services to Seacoast Utilities and the Town of Jupiter. Mr. Thrasher said he would review the other options after the Special Meeting at the Call of the Commissioner Town Commission - September 25, 2012 Page 2 Commission hears from Mr. Harvel and Mr. Williams. Mr. Randolph asked Mr. Thrasher if he is asking the Commission for a decision on one of the options today or just their option recommendations for further research. Mr. Thrasher said since Mr. Harvel's contract and current rates will expire on September 30th, he is looking for a decision today. Earl Harvel addressed the Commission saying he brought his contract Q renewal to their attention 120 days ago, and he said whatever option the Commission chooses, he will continue to provide service as needed, but at a 10% rate increase. He said his original contract was for one year, it was extended to three years at the request of the Commission, he extended it to five years, and he said if his contract is renewed he is proposing a 10% increase in his current rates. Mr. Harvel said he has worked for the Town for forty years, his father started the business when Gulf Stream was Bessemer Properties and, up to the 1980s, his father installed all of the piping in the Town, with the exception of the pipe on AlA. He said he provides a one -hour response time, his warehousing is less than a mile from the Town where his equipment is stored, and he said his backhoe loader is stored on Town property for convenience. Mr. Harvel said Gulf Stream is a service - oriented community and he offers the best service possible. In the event another decision is made today, Mr. Thrasher asked Mr. Harvel if he would continue to provide service on an as- needed basis beyond September 30th at a 10% rate increase or at an on -call rate, and if so, would he require a written agreement. Mr. Harvel said he would to provide service at a 10% increase after September 30th, and he said he would only require a maintenance agreement if the Town decided to stay with Harvel Utility Construction. Mayor Orthwein asked if his proposed rates are for one year only. Mr. Harvel said his rates may be workable for three years, and he said if the Town chooses to continue with his services he would like to negotiate a three -year contract that would possibly include an automatic two or three -year extension. Commissioner Ganger asked Mr. Harvel what portion of his business is allocated to the Town. Mr. Harvel said about 85 %. Mayor Orthwein asked Mr. Harvel how much of his time is spent locally. Mr. Harvel said he owns a home in Mid - State, which is two hours away, and he owns a home locally in Delray. Mr. Harvel said his son is local and can provide a quick response to get a situation under control until he can get here. Commissioner Ganger asked Mr. Harvel if he has Town records, such as maps or GIS, in his possession. Mr. Harvel said there is not much written data and the Town has whatever he has. He said most of the Town's water system information is in memory, there are a few maps that show what is out there, but nothing detailed. Mr. Harvel said the Town should have some schematics that are required by the Health Department indicating which side of the road pipe is located, but they do not indicate exact locations. He said the Town should have very accurate drawings in electronic form on the new 12" water line that was installed on Golfview Drive and south on the east side of AlA. Special Meeting at the Call of the Commissioner Town Commission - September 25, 2012 Page 3 Commissioner Stanley asked Mr. Harvel how many people he employs. Mr. Harvel said the City has imposed a 90 -day moratorium on utility system work at this time, which means no preventative maintenance or upgrades can be done. They are allowed to do the bare basics and, therefore, they are in a bind since income is down. Mr. Harvel said he lost a valuable employee, he has someone to take his place on a part -time basis, he has two other part- timers and 2 full time employees, but he said a large crew is not required to do this work. Mr. Thrasher asked Mr. Harvel to quantify the amount of time he will spend locally. Mr. Harvel said he is local every week, but not a full week if work is slow. Out of a 12 -month period he said he is local about six months of the year. Mr. Thrasher asked Mr. Harvel to confirm that he cannot continue to work for the Town at his current rates. Mr. Harvel confirmed that. Commissioner Ganger said Mr. Harvel and his family has provided a great service to the Town for a long period of time, he thanked Mr. Harvel and said the Town is grateful. Van Williams introduced himself and said he has been a State Certified Underground Utility Contractor for almost 24 years, he has 18 full time employees, his company owns their heavy equipment and they can provide all services without subbing out. Deevan has had a contract with Seacoast Utility Authority since 1994, they are currently in a five -year contract with the Town of Jupiter to do all storm water repair and maintenance, they do a lot of work in the private sector and have a $15 million dollar bonding capacity. Mr. Williams said he cannot compete with Mr. Harvel's knowledge of the Town, but he said whichever option the Commission chooses, his company can do any large job the Town or Mr. Harval cannot handle. He said their offices are located in Lake Park and there may be a four -hour response time, but he said they are always on 24 -hour call. Mayor Orthwein said Option #3 would give maintenance of the water distribution system to Delray. Mr. Thrasher said he has not spoken to Delray about this and they may have no interest, but he said it is something that can be discussed in the future if this is an option the Commission would like him to research. He said it would require many discussions with Delray and it is not be a short -term solution. It was the consensus of the Commissioners that it is not something they want to pursue at this time. Mr. Thrasher said Option #4 entails hiring two employees to work with U Brian Dietrick on maintaining the system, but he said he does not believe the Town is prepared for this responsibility. With this option the Town would bid out large jobs to companies such as Devann, and he said Deevann has advised that they would provide services at the prices listed for a volume of $125,000. With regard to the Hybrid option, Mr. Thrasher said the Town would hire one person to work with Brian Dietrick to perform routine maintenance and share some of the General Fund responsibilities. Mr. Thrasher said that Brian has been learning everything possible about the water system, he went back to school to become certified to do the Town's water Special Meeting at the Call of the Commissioner Town Commission - September 25, 2012 Page 4 testing and he has been working closely with the GIS representative for quite some time. Brian receives and logs information and passes it on to the GIS representative who then logs the data on the graphical interface system which shows locates. Mr. Thrasher said Brian would like to take on more responsibility and is eager to be involved in this work. He said the Town would enter into a contract with Deevan as a fallback, which would allow time for Brian and another employee to become acclimated with their responsibilities, and he said the Town may want to look at a full in -house operation in the future. Mayor Orthwein wanted the other Commissioners to know that Brian went back to school to get his certification to sign off on the Town's water, and she said he has been doing this with Harvel Utilities for quite some time. Mr. Harvel said his company operated under DEP Rule 66 -99 for many years and now a higher classification is required, which is why Brian went back to school to get a Class D License. Commissioner Ganger asked if other certifications are required for Town employees to do this work. Mr. Thrasher said he does not have specifics, but he said there will always be continuing education. Commissioner Ganger asked how long it may take to become fully operational. Mr. Thrasher said the Town can become operational in 30 days and can rely upon a contractor to provide services that the Town is not certified for. He said the Hybrid Option is routine maintenance and can be taken over immediately at a savings. Commissioner Ganger asked what percent of the Town's data is complete and Brian said about 85 %. Mr. Thrasher said the Town had to find locates along AlA recently, Brian was measuring the lines and then provided the date for the GIS Map. Commissioner Ganger asked if the proposed budget can be refined if the Commission approves it as submitted. Mr. Thrasher said he put together an estimate based on conversations with Mr. Harvel and a budget adjustment can be made. He said he does not know what the salary will be, but he said the Town has very good benefits, which many utility companies do not provide, and he feels confident that the Town can attract a competent individual. Commissioner Dering asked Mr. Thrasher if he was comfortable with $100,000 for support services from Deevan and if he is confident that the Town can manage the system if the Commission chooses the Hybrid option. Mr. Thrasher said he is confident with the Hybrid option, and he said he wants to go with $125,000 for support services from Deevan. Commissioner Dering said he prefers the Hybrid option for now, but that y an informal conversation in the future with Delray Beach about taking over our water system would not hurt. Commissioner Anderson agreed that the Hybrid option, with a contractor for a fallback, is the best plan for now because it gives the Town the most control and it can be fine - tuned in the future. Commissioner Ganger and Commissioner Stanley agreed that the Hybrid option would best at this time. Commissioner Ganger moved Commissioner Anderson seconded to proceed with the Hybrid concept, to budget conservatively and move quickly to start the process, and to use Harvel Utilitiy Construction on an as- needed basis during the bridge period. There was no discussion. All voted AYE. Special Meeting at the Call of the Commissioner Town Commission - September 25, 2012 Page 5 Mr. Harvel requested that he be granted the rate increase and, due to insurance purposes and other commitments, he asked the Town to provide a timeframe. Mr. Randolph said a separate motion is required to authorize the 10% rate increase for Harvel Utility. Commissioner Stanley moved and Commissioner Ganger seconded to authorize a 10% rate increase, effective October 1, 2012, for Harvel Utility Construction to provide Q services during the bridge period, not to exceed 90 days. There was no discussion. All voted AYE. Mr. Mayor Orthwein thanked Earl Harvel for everything and wished him the best for the future. VI. Adjournment. Mayor Orthwein adjourned the Meeting at 5:01 P.M. -64g; Gail C. AIoale Administrative Assistant