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