HomeMy Public PortalAbout08/07/1996August 2, 1996
MAYOR: William F. Koch, Jr.
VICE MAYOR: Alan I. Armour
COMMISSIONER: James E. Cross
Joan K. Orthwein
A. Curtis True, M.D.
REGULAR MEETING BEING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF
STREAM ON WEDNESDAY, AUGUST 7, 1996, AT 9:00 A.M., IN THE COMMISSION
CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA 33483.
AGENDA
I. Call to Order.
II. Pledge of Allegiance.
III. Roll Call.
IV. Minutes of the Regular Meeting /Public Hearing of July 19, 1996.
V. Additions, withdrawals, deferrals, arrangement of agenda items.
VI. Announcements.
A. Meeting Dates
1. Regular Meeting & Public Hearing - September 4, 1996 at 4 P.M.
2. Public Hearing (Tentative Budget) -Sept. 4, 1996 at 5:01 P.M.
3. Public Hearing (Budget Adoption) - September 20, 1996 at 5:01 P
4. Regular Meeting & Public Hearing - October 11, 1996 at 9 A.M.
VII. Reports.
A. Town Manager
1. Bi morthly water consumption
B. Town Attorney
C. Town Engineer
1. Little Club Drainage Update
D. Architectural Review & Planning Board
1. Future meeting dates
a. September 25, 1996 at 8:30 A.M.
b. October 30, 1996 at 8:30 A.M.
E. Finance Director
1. Financial Report for July, 1996
F. Police Chief
1. Activity for July, 1996
G. Construction in progress in July, 1996
VIII. Items for Commission Action.
A. Proposed Employee Health Insurance Plan
B. Proposed Section 125 Flexible Benefits Plan
C. Proposed Water System Improvement Projects
D. Resolution No. 96 -9; A RESOLUTION OF THE TOWN COMMISSION OF
THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, AUTHORIZING
FEDERAL TAX DEPOSIT PAYMENTS BY ELECTRONIC FUNDS TRANSFER, AND
DESIGNATING BARNETT BANK, 5112 N. OCEAN BOULEVARD, OCEAN RIDGE,
FLORIDA AS THE FINANCIAL INSTITUTION FOR THE ELECTRONIC TRANSFER
OF FEDERAL TAX DEPOSIT PAYMENTS USING THE ACH DEBIT METHOD OF
REMITTANCE; PROVIDING AN EFFECTIVE DATE.
E. Items by Mayor and Commissioners
IX. Correspondence.
A. Resolutions adopting the position of the Palm Beach County
Municipal League, Inc. with regard to the School Concurrency
Issue.
1. #96SB; Village of Golf
2. #96 -11; Village of Wellington
X. Public.
XI. 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 IN-
CLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED.
F.S.S. 286.0105
C
MINUTES OF THE REGULAR MEETING HELD BY THE TOWN COMMISSION OF THE TOWN
OF GULF STREAM ON WEDNESDAY, AUGUST 7, 1996, AT 9:00 A.M., IN THE COMMISSION
CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA.
I. Call to Order. The meeting was called to order by Vice Mayor Armour
in the absence of Mayor Koch.
II. Pledge of Allegiance. Vice Mayor Armour led the Pledge of Allegiance.
III. Roll Call.
Present and Alan I. Armour Vice Mayor
Participating: James E. Cross Commissioner
Joan K. Orthwein Commissioner
Absent with notice: William F. Koch., Jr. Mayor
A. Curtis True, M.D. Commissioner
Also Present and
Participating:
E. Scott Harrington
John Randolph
Rita Taylor
William Thrasher
Robert Schultz
Russell Anderson
Town Manager
Town Attorney
Town Clerk
Finance Director
Police Chief
ALS Financial Group
IV. Minutes of the Regular Meeting /Public Hearing of July 19, 1996.
Commissioner Armour stated that his position regarding the desired
amount of the Reserve Fund for the future should be corrected to read that
he would be comfortable with the ultimate goal being $1,000,000. Commis-
sioner Cross moved and Commissioner Orthwein seconded that the minutes be
approved as amended and all voted AYE.
V. Additions, withdrawals, deferrals, arrangement of agenda items.
Town Manager Harrington asked to withdraw VII.C.l., a report from
the Town Engineer regarding the Little Club Drainage in that the Engineer
had advised that he was not ready for a presentation at this time. Mr.
Harrington further requested that Items VIII. A. and B., Proposed Employee
Health Insurance Plan and Proposed Section 125 Flexible Benefits Plan be
heard following the Announcements. There were no objections to these requests
VI. Announcements.
A. Meeting Dates
1. Regular Meeting & Public Hearing - September 4, 1996 at 4 P.M.
2. Public Hearing (Tentative Budget) -Sept. 4, 1996 at 5:01 P.M.
3. Public Hearing (Budget Adoption) - September 20, 1996 at 5:01 P.M,
4. Regular Meeting & Public Hearing- October 11, 1996 at 9 A.M.
These announcements were made by the Town Clerk.
VIII.A. Proposed Employee Health Insurance Plan being heard out of order.
Town Manager Harrington reminded that he had advised at the first
budget hearing that he and Mr. Thrasher were investigating various health
insurance policies in an effort to 1) Stabilize future rate increases.
2) Reduce current premiums. 3) Reduce premiums for spouse and dependent
coverage. 4) Maintain as much flexibility as possible to select health
care providers. He stated that a number of plans had been reviewed and
that he and Mr. Thrasher agreed that the Blue Cross Blue Shield dual option
health plan would satisy these objectives quite well. Mr. Harrington
pointed out that because the plan is offered by a private carrier, it is
regulated by the state differently than a pooled plan,such as the plan the
Town now has, with tight regulations regarding rates and premium increases
resulting in more predictable and less volatile increases in the future.
Regular Meeting -Town Commission
August 7, 1996 page 2
Mr. Harrington stated employee coverage premiums sYDuld drop at least $12,500
per year,and possibly as much as $15,OOO,with premiums for spouse and
family coverage being affordable and in line with rates the employees
said they would be willing to pay. The Town Manager closed by explaining
that the employee could select either the HMO or PPO option, with the HMO
reducing out -of- pocket expenses and the PPO offering a greater choice of
C doctors as well as the option of going outside of network and still having
up to 70% of their expenses paid. He then introduced Russell Anderson of
ALS Financial Group.
At the request of Vice Mayor Armour, Mr. Anderson covered the provisions
of the plan in detail making a special point that the individuals would
not have to file any claims and wait for their - reimbursement. He stated
that the contract would be for 1 year and could be renewed on a year to
year basis. He further stated that premiums do not always change and in
fact there have been times that premiums slightly decreased. Mr. Anderson
closed by advising that the State has a special stipulation for small groups
guaranteeing acceptance of pre- existing conditions,provided they have been
previously covered by insurance, immediately.
Commissioner Orthwein moved and Commissioner Cross seconded that the Town
Manager be authorized to complete an agreement with Mr. Anderson for the
provision of the Blue Cross Blue Shield dual option health plan. Roll
Call: Comm. Orthwein; AYE, Comm. Cross; AYE, and Vice Mayor Armour; AYE.
VIII.A. Proposed Section 125 Flexible Benefits Plan being heard out of order.
Mr. Harrington explained that this plan allows employees to buy
group insurance coverage offered'.by their employer,l'e.spouse or dependent
health insurance, with pre -tax earnings, providing also a savings to
employers because payroll taxes are not paid on earnings put into the plan.
He further explained that because rules governing 125 plans are complex,
most employers use a third party to set up and administer the plans. He
stated that some insurance companies will set up the plan and provide
plan administration for a nominal cost if the employer agrees to offer
their insurance products. Town Manager Harrington reported that both he
and Mr. Thrasher believed that the Town and the employees could benefit
greatly from this type of plan, particularly if the plan setup and
administration were provided by an insurance company. He stated that the
insurance that would be offered may include life, dental, accident, cancer,
disability, etc., most of which would be paid for by only those employees
wishing to purchase these coverages, adding that the Town currently
provides dental insurance and a $15,000 term life policy for all employees
through the League of Cities.
Mr. Russell Anderson explained that the plan provided for premium
conversion and flexible spending accounts whereby bills for out -of- pocket
medical expenses and day care for a child under age 13 or care for a
spouse or adult dependent incapable of self -care are eligible for reimburse-
ment from the plan. He added that when this money is reimbursed to the
emp]cyee on presentation of invoices from the supplier, it is not taxable.
Mr. Anderson closed by advising that if the Town enters into the 125 plan,
each employee that is interested in participating will be contacted in-
dividually to determine how much they would want to contribute and it would
be explained that any monies placed in the plan that were not used during
the year are not refundable to the employee. Commissioner Cross moved
and Commissioner Orthwein seconded that the Town Manager & Finance Director
be authorized to pursue the establishment of a 125 plan with Mr. Anderson.
Regular Meeting -Town Commission
August 7, 1996 page 3
Roll Call: Comm. Orthwein; AYE, Comm. Cross; AYE, and Vice Mayor Armour; AYE
Vice Mayor Armour then returned to the order of the agenda.
V22. Reports.
A. Town Manager
1. Bi- monthly water consumption
CTown Manager Harrington presented the report and pointed out that the con-
sumption is within 1% of that last year, which was the lowest in the last
7 years. He stated that he is very pleased with this and he believed
that the consumption would most likely remain near this level since the
Town has the water rate structure in place to remind those who might increase
their usage.
B. Town Attorney
There was no report from the Town Attorney.
C. Town Engineer
1. Little Club Drainage Update
This item was withdrawn from the agenda.
D. Architectural Review & Planning Board
1. Future meeting dates
a. September 25, 1996 at 8:30 A.M.
b. October 30, 1996 at 8:30 A.M.
These announcements were made by Vice Mayor Armour.
E. Finance Director
1. Financial Report for July, 1996
William Thrasher reported that a $45,000 transfer had been made from the
invested funds into operating funds, - leaving a balance of $371,901.45 in
the invested funds. He further reported that $30,184.04 had been received
in property taxes and $16,891.90 from water sales.
Mr. Thrasher stated that operating fund revenues were $13,192.04 less
than anticipated with expenditures being $34,973.37 less than budgeted for
the same period, resulting in a positive variance of $21,781.33.
Revenues for the water fund exceeded the budgeted amount by $11,007.20
while the expenditures were $20,843.08 less than the budgeted amount, result-
ing in a positive variance of $31,850.28. Mr. Thatcher called attention to
4 notes at the bottom of the report on the Water Fund that contained detail
of bookkeeping entries he had made that were reflected in the report that
he had just given.
Commissioner Orthwein moved that the Financial Report for July, 1996 be
accepted as presented and Commissioner Cross seconded the motion. Roll
Call: Comm. Orthwein; AYE, Comm. Cross; AYE, and Vice Mayor Armour; AYE.
F. Police Chief
1. Activity for July, 1996
Chief Schultz presented the analysis of police activity for July and advised
that he had just returned from a 2 week vacation.
G. Construction in progress in July, 1996
The report reflected $4,446,119 worth of construction in progress in Town
during July, 1996.
Regular Meeting -Town Commission
August 7, 1996 page 4
VIII. Items for Commission Action.
A. Proposed Employee Health Insurance Plan
B. Proposed Section 125 Flexible Benefits Plan
These two items were considered earlier on the agenda.
C. Proposed Water System Improvement Projects
Town Manager Harrington reminded that when financing had been arranged for
the water line replacement under the Intracoastal Waterway, more money
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than was needed for the project was borrowed. He further reminded that
at that time he presented a tentative list of small projects in need of
attention and the Commission had directed that he reE ine the list and
return with it for final authorization before proceeding. Mr. Harrington
then called attention to the refined list that was included in the agenda
packet showing the cost of a number of water service line replacements
to be $33,600 and several water service line relocations at a cost of
$13,155, a total of $46,755.00. He advised that the service line replace-
ments involve old galvanized service lines that run under streets, including
AlA, the life expectancy of which has been reached. Mr. Harrington
recommended that these be replaced before they break and cause extensive
damage to roadways. With regard to the relocations, he advised that these
lines are also old and the meters are located in inappropriate locations
such as driveways, parking lots and on private property. He pointed out
that were there to be a problem, a high amount of collateral damage is
likely. Town Manager Harrington reported the remaining amount of borrowed
funds to be $28,521 and advised that approximately $20,000 is budgeted for
renewal and replacement in the water fund. He asked authorization to
use these funds for the list of projects, adding that it will be necessary
to have authorization from the lender, Sun Trust, to use the $28,521 for
these projects but he did not foreme any problem with obtaining this.
In closing, Mr. Harrington advised that each project would be billed
separately based on a time and materials basis at the rates currently in
effect with Harvel Utilities, adding that the Town of Highland Beach recently
conducted a study and found Mr. Harvel's rates to be less than similar
contractors in this area. He advised that he did not recommend going to
bid given the time and expense involved in ureparing the enqineering and
bid specification that would be required. Mr. Harrington believed that
these expenses would more than equal any potential cost savings that could
be realized by going to bid.
Commissioner Orthwein moved that the Town Manager be authorized to proceed
with the projects listed,with Mr. Harvel, using the budgeted renewal/replace-
ment in the water fund and the $28,521 remaining in the borrowed funds,
upon receiving approval to do so from Sun Trust. The motion was seconded
by Commissioner Cross. Roll Call: Comm. Orthwein; AYE, Comm. Cross; AYE,
and Vice Mayor Armour; AYE
D. Resolution No. 96 -9; A RESOLUTION OF THE TOWN COMMISSION OF THE
TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, AUTHORIZING
FEDERAL TAX DEPOSIT PAYMENTS BY ELECTRONIC FUNDS TRANSFER, AND
DESIGNATING BARNETT BANK, 5112 N. OCEAN BOULEVARD, OCEAN RIDGE,
FLORIDA AS THE FINANCIAL INSTITUTION FOR THE ELECTRONIC TRANSFER
OF FEDERAL TAX DEPOSIT PAYMENTS USING THE ACH DEBIT METHOD OF
REMITTANCE; PROVIDING AN EFFECTIVE DATE.
Commissioner Cross moved and Commissioner Orthwein seconded that Resolution
#96 -9 be adopted, following the Resolution having been read by title by
the Town Clerk. Roll Call: Comm. Orthwein; AYE, Comm. Cross; AYE, and
Vice Mayor Armour; AYE.
Regular Meeting -Town Commission
August 7, 1996
pa4e 5
E. Items by Mayor and Commissioners
Vice Mayor Armour suggested that Mr. Harrington review the matter of
requiring the signature of a Commissioner on every check over $500.00.
He observed that this has been the policy for over 20 years and during
that time we have come to realize that $500 does not go far in making
purchases. He believed the limit should be increased and directed that
C1 a recommendation be brought to the Commission at a future meeting.
IX. Correspondence.
A. Resolutions adopting the position of the Palm Beach County
Municipal League, Inc. with regard to the School Concurrency
Issue.
I. #96SB; Village of Golf
2. #96 -11; Village of Wellington
These resolutions were made a part of the official record.
X. Public.
There was no comment from the public.
XI. Adjournment.
Vice Mayor Armour adjourned the meeting at 10 A.M. on a motion to do
so made by Commissioner Cross and seconded by Commissioner Orthwein with
all voting in the affirmative.
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Rita L. Taylor, r wn Clerk