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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 C 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. /24 �/_ / Rita L. Taylor, r wn Clerk