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HomeMy Public PortalAbout07/10/2009MAYOR: William F. Koch, Jr. VICE MAYOR: Joan K. Orthwein COMMISSIONER: Muriel J. Anderson Fred B. Devitt III Chris D. Wheeler REGULAR MEETING AND PUBLIC HEARING BEING HELD BY THE TOWN OF GULF STREAM ON FRIDAY, JULY 10, 2009 IN THE COMMISSION CHAMBERS OF THE TOWN HALL, 100 FLORIDA. AGRNnA I. Call to Order. II. Pledge of Allegiance. III. Roll Call. July 2, 2009 THE TOWN COMMISSION OF AT 9:00 A.M. SEA ROAD, GULF STREAM, IV. Minutes of the Regular Meeting of June 12, 2009. V. Additions, withdrawals, deferrals, arrangement of agenda items. VI. Presentation of the Audit for Fiscal Year 2007 - 2008 -Ron Bennett. VII. Announcements. A. Regular Meetings and Public Hearings 1. August 14, 2009 @ 9 A.M. 2. September 11, 2009 @ 9 A.M. 3. October 9, 2009 @ 9 A.M. 4. November 13, 2009 @ 9 A.M. 5. December 11, 2009 @ 9 A.M. VIII. PUBLIC HEARING. A. Applications for Development Approval 1. An application submitted by William Wietsma, as Agent for Quarter Track LLC, the owners of property located at 555 Palm Way, Gulf Stream, Florida, which is legally described as Lot 20, Polo Cove Subdivision. a. LAND CLEARING PERMIT to clear the building site for new construction. b. SPECIAL EXCEPTION to permit 300 square feet of covered, unenclosed roof projection that exceeds the maximum permitted floor area ratio. c. LEVEL 3 ARCHITECTURAL /SITE PLAN REVIEW to permit the construction of a two -story single family Gulf Stream Bermuda style dwelling with 2 car garage, consisting of 5,568.5 square feet, and a swimming pool. IX. Reports. A. Town Manager B. Architectural Review & Planning Board 1. Meeting Dates a. July 23, 2009 @ 8:30 A.M. b. September 24, 2009 @ 8:30 A.M. C. October 22, 2009 @ 8:30 A.M. d. November to be determined e. December 24, 2009 @ 8:30 A.M. C. Finance Director 1. Financial Report for June 2009 D. Police Chief 1. Activity for June 2009 X. Correspondence. A. Confirmation of Town Manager Certification from ICMA AGENDA CONTINUED XI. Items for Commission Action. A. Ordinance No. 008/10; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, AMENDING THE ADOPTED TOWN OF GULF STREAM COMPREHENSIVE PLAN BY ADOPTING THE EAR BASED COMPREHENSIVE PLAN AMENDMENTS AS SET FORTH HEREIN AND ATTACHED HERETO; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT l , HEREOF; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. (2nd reading & adoption) B. Appointment of 2 Alternate Members for ARPB C. Presentation of Proposed Budget for 2009 -2010 1. Budget Consideration 2. Proposed Millage for 2009 -2010 3. Certification of Rolled Back Millage Rate 4. Date of First Public Hearing for Budget Adoption 5. Date of Second Public Hearing for Final Budget Adoption D. Items by Mayor and Commissioners XII. Public. XIII. 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 O MINUTES OF THE REGULAR MEETING AND PUBLIC HEARING HELD BY THE TOWN COMMISSION OF THE TOWN OF GULF STREAM ON FRIDAY, JULY 10, 2009 AT 9:00 A.M. IN THE COMMISSION CHAMBERS OF THE TOWN HALL, 100 SEA ROAD, GULF STREAM, FLORIDA. I. Call to order. Mayor Koch called the meeting to order at 9:00 A.M. II. Pledge of Allegiance. The Pledge of Allegiance was led by the Mayor. III. Roll Call. Present and Participating Also present and Participating: William F. Koch, Jr Joan K. Orthwein (via telephone) Fred B. Devitt III Muriel J. Anderson Chris D. Wheeler William H. Thrasher Rita L. Taylor Garrett Ward John Randolph Ron Bennett William Wietsma Marty Minor Mayor Vice -Mayor Commissioner Commissioner Commissioner Town Manager Town Clerk Police Chief Town Attorney Nowlen, Holt & Miner Agent for Quarter Track LLC Urban Design Kilday Studios IV. Minutes of the Regular Meeting of June 12, 2009. Commissioner Anderson moved and Commissioner Wheeler seconded to approve the Minutes of the June 12, 2009 Commission Meeting as circulated. All voted AYE. V. Additions, withdrawals, deferrals, arrangement of agenda items. There were no changes requested. VI. Presentation of the Audit for Fiscal Year 2007 - 2008 -Ron Bennett. Town Manager Thrasher introduced Ron Bennett, a Manager with the firm of Nowlen, Holt & Miner, P.A., who presented the Audit Report for Fiscal Year 2007 -2008. He thanked the Town for allowing his Firm to serve as auditors again this year and he thanked the Town's management and staff for their courtesy and cooperation, and congratulated them for doing a good job. Mr. Bennett prepared and distributed a 5 -year summary of the financial history of the Town's revenues, expenditures, General Fund Balance and the revenues and expenses for the Proprietary Fund. He reviewed each item, starting with Revenues, which he said have been amazingly consistent. Ad valorem taxes in 2008 were $343.00 more than 2007. This year, there was an excess of revenues over expenditures of a little over $300,000. There were some changes in the State of Florida's Chart of Accounts and, by definition, an occupational license is now a local business tax Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 2 and a franchise fee is now a license, which explains why the Licenses and Permits line item shows an increase in 2008 and Local Business Tax now has its own category. Revenues have been very stable, almost identical in 2007 and 2008, up slightly from 2006. 2008 Expenditures were almost identical to 2006 with a dip in 2007. The increase was primarily in the Police Department where expenditures for 2008 were about $260,000 more than in 2007. About $161,000 of that increase in expenditures was the Police Department and about $78,000 was in capital outlay (non- recurring items). In the Fund Balance for the last 5 years, Reserved is larger than Unreserved, which is unusual. The reason is the loan from the General Fund to the Water Fund of about $1.3 million. Other than that, the Unreserved balance is about 48% of the total expenditures, which Mr. Bennett considers to be toward the high end of a reasonable range. Mr. Bennett recommends a 25- 50% reserve. The total Fund Balance is over 100% of the expenditures, but more than half of that is not available because of the loan to the Water Fund. Mr. Bennett pointed out a couple of interesting items in the Proprietary Fund. Revenues, except for a slight drop in 2005, have increased slightly each year from 2004 to 2008. The change in net assets, which is essentially the equivalent of net income, has fluctuated from a $55,000 loss to $108,000 gain. What drives that is, all expenses, with the exception of two categories, are very stable. Water Purchases were stable except for one year. There were some leaks in 2006, a large capital project in 2007 and then the cost of water went back down. If you disregard 2006, revenues varied from $454,000 to $467,000, only a $13,000 variance over a 5 -year period, which is very stable. The other item with less stability is Repairs and Maintenance since you cannot control what may break and need repair. Mr. Bennett said that an interesting thing about the audit was the Water Fund's net profit of $218. With the Water Fund owing the General Fund $1.3 million, it will have difficulty paying back the loan with a $218 profit. Therefore, the Town must decide whether to raise water rates to fund the repayment or forgive the loan. Mayor Koch said he would prefer to write it off and Mr. Bennett said that would be his preference, but it would be up to the Commission to make that decision. Mr. Bennett stated that the purpose of an audit is for an outside CPA firm to render an opinion as to whether or not the financial statements are fairly presented in accordance with generally J accepted accounting principals. Nowlen, Holt & Miner have issued a clean opinion this year saying the Town is in accordance with generally accepted accounting principals. Mr. Bennett opened the floor to questions. Commissioner Anderson asked about combining the Water Fund and the General Fund. The Commissioners received a memo from Town Manager Thrasher stating that he did not recommend this and Commissioner Anderson wanted Mr. Bennett's opinion. He stated he would be against it because it is a Proprietary Fund which is like a for profit business. Governmental accounting has different accounting rules for different funds. The General Fund is a Governmental Fund where Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 3 the basis of accounting is called Modified Accrual Accounting dealing with current assets and liabilities, no fixed assets. The Water Fund is an Enterprise Fund, where the basis of accounting is called Full Accrual Accounting. An income statement and a balance statement would look pretty much the same in an Enterprise Fund. An Enterprise Fund is funded by charges for services provided and a Governmental Fund is funded by ad valorem taxes and the Government would like those funds to be separated. Mayor Koch asked Mr. Bennett if his recommendation would be to write off the water debt. Mr. Bennett said he would recommend that, otherwise the Town would need a substantial rate increase in order to pay down the principal as well as the interest. If the debt is forgiven, it goes away and the General Fund will have a reasonable fund balance. About 48% of the 2008 expenditures are in the Unreserved fund balance. If there was no debt in the Water Fund, there would have been a net profit of about $46,000, but instead, $45,000 in interest was paid to the General Fund. Mayor Koch stated that he would like to write off the debt, Commissioner Anderson agreed and Mr. Bennett said that it would be totally within the authority of the Town Commission to do so. Commissioner Wheeler agreed and said he believes it is the Town's responsibility to provide infrastructure and would feel differently if the Town were trying to write off maintenance. Commissioner Wheeler moved and Commissioner Anderson seconded the motion to write off the outstanding debt of the Water Fund to the Town. All voted AYE. Town Clerk Taylor said there would be a Resolution presented to the Commission at the next meeting for signatures to confirm this action. Commissioner Wheeler moved and Commissioner Anderson seconded to accept the Audit for Fiscal Year 2007 -2008 as presented by Mr. Ron Bennett on behalf of Nowlen, Holt & Miner, P.A. All voted AYE. VII. Announcements. A. Regular Meetings and Public Hearings 1. August 14, 2009 @ 9 A.M. 2. September 11, 2009 @ 9 A.M. 3. October 9, 2009 @ 9 A.M. 4. November 13, 2009 @ 9 A.M. 5. December 11, 2009 @ 9 A.M. Mayor Koch noted the upcoming meetings concerning the budget and stressed the importance of a quorum in order to approve budget items. He asked for a commitment of attendance. Commissioner Wheeler said he was okay with the regularly scheduled Commission meetings and the September 11th Commission meeting and Budget Hearing, but he was not sure about the second September Budget Hearing date. Town Clerk Taylor noted the memo included in the Commission packets giving the Commissioners a choice of three dates for the second Budget Hearing. The dates are Tuesday, Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 4 September 22n6, Wednesday, September 23`d or Thursday, September 24th at 5:01 P.M. Both Commissioners Wheeler and Orthwein said they will not be available for September 24th and both Commissioners Anderson and Devitt said they will be available for on all three dates. Town Clerk Taylor noted that the September Budget Hearings take place at 5:01 P.M. The first will follow the Commission Meeting on September 11, 2009 which will commence at 4:00 P.M. The Commissioners chose Wednesday, September 23, 2009 at 5:01 P.M. for the second Budget Hearing. Notices will be sent out and the September Commission Meeting and Budget Hearing dates and times will be noted on the August Agenda. VIII. PUBLIC HEARING. Mayor Koch disqualified himself from the Public Hearing stating his firm may be involved in the sale of this property, and passed the gavel to Commissioner Devitt. Clerk Taylor asked if there were any ex -parte communications on this matter. Vice -Mayor Orthwein said that she spoke to Mr. Wietsma regarding landscaping. Town Clerk Taylor acknowledged Vice -Mayor Orthwein and administered the oath to William Wietsma. Town Clerk Taylor read the following Application for Development Approval: A. Applications for Development Approval 1. An application submitted by William Wietsma, as Agent for Quarter Track LLC, the owners of property located at 555 Palm Way, Gulf Stream, Florida, which is legally described as Lot 20, Polo Cove Subdivision. a. LAND CLEARING PERMIT to clear the building site for new construction. b. SPECIAL EXCEPTION to permit 300 square feet of covered, unenclosed roof projection that exceeds the maximum permitted floor area ratio. c. LEVEL 3 ARCHITECTURAL /SITE PLAN REVIEW to permit the construction of a two -story single family Gulf Stream Bermuda style dwelling with 2 car garage, consisting of 5,568.5 square feet, and a swimming pool. Mr. Wietsma took the podium and said that he designed the house on a corner lot which means there are additional setbacks to deal with. Normally the design would be a 70 -foot wide house, but because it sits on a corner lot, the design is a 65 -foot house and is in 100% compliance with the Town Code. It is an Anglo- Caribbean style home with the front facing South on Palm Way. The structure consists of a two -story middle with one story on each side. Commissioner Wheeler moved and Commissioner Anderson seconded the motion to recommend approval of a land clearing permit. All voted AYE. Commissioner Wheeler moved and Commissioner Anderson seconded the motion to recommend approval to permit 300 SF of covered unenclosed roof projection that exceeds the maximum permitted floor area ratio. All voted AYE. Commissioner Wheeler moved and Commissioner Anderson seconded the motion to recommend approval of the Level III Architectural /Site Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 5 Plan based on a finding that the proposed demolition of the existing structures and the construction of a two -story Gulf Stream Bermuda style single family dwelling with attached 2 -car garage consisting of 5,568.5 SF and a pool meet the minimum intent of the Design Manual and applicable review standards with the following conditions: 1. Electric Service line shall be buried if they are not O already. 2. The dock, boat and lifts will conform to the section 66- 369 in entirety. 3. Prior to the issuance of a Certificate of Occupancy the owner of the property shall prepare and record a deed restriction which shall provide that all unenclosed roof projection areas as approved shall remain so for as long as the structure is in existence or exceeds the maximum permissible FAR. 4. Prior to the issuance of a Certificate of Occupancy, the owner of the property shall prepare and record a Gulf Stream Driveway Removal Agreement. 5. The landscape plan, as shown, is conditionally approved; however, in the event of any minor modifications, the landscape plan will be submitted to the Town Manager for his review and approval. If major modifications are made to the landscape plan, it will be brought back before the ARPB for their review and approval, prior to commencement of landscaping. Before a roll call of votes, Vice -Mayor Orthwein asked Mr. Wietsma if it would make more sense to locate the generator closer to the propane tank. Mr. Wietsma stated that, from his standpoint, it makes more sense to locate the generator where the power comes into the house as planned. He said it would be surrounded by a hedge and the generator was very quiet. All Voted AYE. Commissioner Devitt returned the gavel to Mayor Koch. IX. Reports. A. Town Manager Town Manager Thrasher had one item on his report and had asked Linda Harvel to join the meeting. He explained that one Saturday each year Ms. Harvel attends the Hurricane Expo and throughout i the year she participates in CRS organizational meetings as it relates to our Community Rating System on our insurance. The Town received a letter stating that as of June 19, 2009, the Town of Gulf Stream's CRS rating has gone from an 8 to a 7, which means that those residents located in a flood plain area will receive an additional 5% discount on top of the current 10% discount when they buy their flood insurance. Town Manager Thrasher said this would not have been possible without Ms. Harvel's assistance and thanked her. Mayor Koch asked if insurance companies will be aware of the change in the Town's rating when residents purchase their flood insurance. Town Manager Thrasher confirmed that insurance companies will be Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 6 informed by the same organization that the informed the Town. He said that the Town encourages its residents to call them to find out what flood zone they are in and that it is a requirement of the Town to provide this information on a timely basis and make a record of when this information was provided. Commissioner Wheeler also thanked Ms. Harvel. B. Architectural Review & Planning Board 1. Meeting Dates a. July 23, 2009 @ 8:30 A.M. b. September 24, 2009 @ 8:30 A.M. c. October 22, 2009 @ 8:30 A.M. d. November to be determined e. December 24, 2009 @ 8:30 A.M. There were no comments or questions from the Commission concerning the scheduled Architectural Review Planning Board meetings. C. Finance Director 1. Financial Report for June 2009 Town Manager Thrasher asked for approval of the Financial Report as submitted. Commissioner Anderson asked for a clarification of Check #7281. Town Manager Thrasher explained that it is the Special Magistrate fee for Code Enforcement actions. The Town must hire an attorney to preside over a hearing and make a ruling. The Town has renewed its contract with Glen J. Torcivia & Associates for Special Magistrate services and there is a fee for which the Town is often obligated to pay. Commissioner Devitt asked if this occurred often and Town Manager Thrasher said it was not very often. Commissioner Devitt asked if the homeowner shows up for a hearing and Town Manager Thrasher said they do. He explained that hearings are held for reasons such as code enforcement violations. Commissioner Wheeler asked about the loser paying the Special Magistrate cost. Town Manager Thrasher explained that that was the objective and fines are assessed. Commissioner Wheeler asked that when the Special Magistrate opines, does the Town pay the cost if they lose the case and does the resident pay the cost if they lose? If not, could the Town adopt an ordinance stating that henceforth, the loser of the case pays the fee? Town Manager Thrasher explained that when the Town wins and there is no corrective action, a fine is assessed. Attorney Randolph stated that the Code Enforcement Statute is very specific and the Town must follow it directly. It does not have that provision in it. It does include a provision where the Town can assess costs and often, in addition to a fine, the Town can assess a fine for costs. Attorney Randolph said that in other municipalities, a typical magistrate fee would be $150.00 and asked if the Town cites for costs as well as fines. Town Clerk Taylor stated that fines have always been larger than costs and the Town has only lost one case which was several years ago and they had to absorb the Special Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 7 Magistrate fee. Town Manager Thrasher stated that fines can be as high as 250.00 a day. Commissioner Wheeler stated that he would like to address this matter again and rule that the loser of the case is responsible for the cost. Commissioner Anderson moved and Commissioner Devitt seconded to approve the Financial Report as submitted. All voted AYE. 0 D. Police Chief 1. Activity for June 2009 Chief Ward said that in the interest of Commissioner Anderson's inquisitiveness regarding grand theft, the Town has had another incident where a wallet was stolen from a residence during a party given by the owner. There was less than $100.00 in the wallet, but the wallet was valued at $600.00. Commissioner Wheeler moved and Commissioner Anderson seconded to approve the Activity Report for June, 2009. X. Correspondence. A. Confirmation of Town Manager Certification from ICMA Town Clerk Taylor read a portion of the certification letter to the Commission, a copy of which was included in their packet. "Thank you for submitting the annual update required to maintain the credential. Your submission was good and has been reviewed by the Credentialing Advisory Board. You will soon receive an updated certificate." She said, "and then they close by saying, We congratulate you and support you as you continue to fulfill your professional development plan and pursue the goal of lifelong learning. Your commitment to professional development is so important to the public we serve, and the profession will respect you for lifelong learning and growing." Mayor Koch noted that Town Manager Thrasher is also on the Board of the Palm Beach County League of Cities. XI. Items for Commission Action. A. Ordinance No. 008/10; AN ORDINANCE OF THE TOWN COMMISSION OF THE TOWN OF GULF STREAM, PALM BEACH COUNTY, FLORIDA, AMENDING THE ADOPTED TOWN OF GULF STREAM COMPREHENSIVE PLAN BY ADOPTING THE EAR BASED COMPREHENSIVE PLAN AMENDMENTS AS SET FORTH HEREIN AND ATTACHED HERETO; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREOF; PROVIDING FOR CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE. (2nd reading & adoption) Town Clerk Taylor announced that this is the second reading of Ordinance 008/10 and read the Ordinance title. Clerk Taylor said the Ordinance passed first reading on October 10, 2008 and is being presented today for adoption. She announced that Marty Minor, who represents the planning firm of Urban Design Kilday Studios, worked on this project and was present to answer any questions. Commissioner Devitt asked if the maps are completely accurate and Clerk Taylor said there was one error where a section of the County shows as part of the Town, which is an area Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 8 of condos along AlA. Commissioner Wheeler asked if the FIND land is within the boundaries of the Town and Clerk Taylor confirmed that it is. Commissioner Devitt asked about the REC property and the Mayor stated that it belongs to the Golf Club. Commission Wheeler asked about the small blue section next to the REC property and the Mayor said it is the FIND property. Mayor Koch asked if the Ordinance would be submitted to the State and Clerk O Taylor asked Mr. Minor to address the question. Mr. Minor said that following adoption of the Ordinance, it would be sent to the State and to the Treasure Coast Planning Council and, by statute, the State has 45 days to express any concerns or issue an appeal. He said that during the.past 6 weeks he has worked with the DCA who provided an informal review and had no concerns. Commissioner Wheeler noted that there were no material changes over the years and Mr. Minor said that any changes made to date were mostly updates to reflect new material and eliminate old material. Commissioner Wheeler asked if the Town was required by law to update at regular intervals. Mr. Minor said the required update it is usually every 5 years and this is the first update for the Town because the previous requirement had a population cap and Towns below that cap did not have to update. That cap has now been removed. Commissioner Wheeler moved and Commissioner Anderson seconded to approve the 2nd reading and adopt Ordinance 008/10. All voted AYE. B. Appointment of 2 Alternate Members for ARPB Town Clerk Taylor brought attention to a letter of interest included in the Commission packet from Mr. Malcolm Murphy. The Mayor asked if anyone knew Mr. Murphy and Commissioner Anderson said she recommended him. Commissioner Anderson said that Mr. Murphy was formerly the President of Place Au Soleil and is currently a Director on the Civic Association Board. She said he is very active, knowledgeable and willing to do the work of the ARPB. He is in Town all year, but Mr. Murphy was previously with Day Jet and they declared bankruptcy. Therefore, he is seeking employment and may have to leave, but as long as he is in Gulf Stream, he will be available as an Alternate. If he must resign, Commissioner Anderson said there was someone else who is also here all year and would step in. Commissioner Anderson moved and Commissioner Wheeler seconded the motion to appoint Malcolm Murphy as an Alternate to the ARPB. Vice -Mayor Orthwein stated that she votes AYE based on Commissioner Anderson's Jrecommendation and Commissioner Wheeler stated that the reason for his second was based on Commissioner Anderson's recommendation. All voted AYE. Clerk Taylor noted that there is one more Alternate to be appointed to the ARPB. C. Presentation of Proposed Budget for 2009 -2010 1. Budget Consideration Mayor Koch informed the Commission that the City of Delray returned a revised Fire Contract to the Town. The City turned down the Town's proposal and came back with another Contract. It was received the afternoon before the Commission Meeting which did not allow time for review by the Commission prior to Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 9 the meeting. Mayor Koch said it will take some discussion and will be on the August Commission Agenda and distributed for review prior to the meeting. Town Manager Thrasher noted that the Town has until September 30, 2009 to renew the Fire Contract with the City of Delray. Commissioner Devitt asked if there was anything different about the new Contract. Town Manager Thrasher said that there were two differences in the new Contract. The first is the amount of money, which has been incorporated into the Town's proposed budget. The second difference is the removal of the clause in the previous Contract referring to an additional cost to Town when Station #2 is fully- staffed. Town Manager Thrasher stated that the proposed 2009 -2010 Budget was provided in the Commission packet for review and a memo was distributed prior to the meeting explaining certain line items. He noted that this budget incorporates the new Fire Contract fees representing almost an 84% increase in costs for that single line item, which is a major increase to this budget. The Town does not control those fees and does not have the ability to reduce them. Town Manager Thrasher stated that the budget was created by using the roll back rate. This year it is a roll up. Last year's millage rate was 2.8655. The proposed budget has a millage rate of 3.0437 This budget proposes an increase in the millage rate, but it is not an increase in tax dollars to the residents. It provides the same revenue to the Town as last year. Total revenues to the Town have gone up less than one -half of a percentage point, or .47 %. Expenditures have gone up by that same amount. The proposed budget provides a $38,000 contingency at this time. However, additional information is still being gathered on various lines items and, therefore, the contingency amount could change. Gross Taxable Values have gone down by 5.5% for the first time in the 15 -year history of tracking those numbers, which is provided as part of this budget. The Town has never experienced this before, but it is largely due to State law and how we have been made to conform to these laws in some respects. The proposed budget includes a 2% increase in salaries. There have been personnel changes in both Administration and the Police Department. The new Administrative Assistant's salary is not the same as that of the employee that left that position and she is not entitled to a 2% salary increase. As turnover takes place in the Police Department, new officers come in on a step increase program and are not entitled to a 2% salary increase. Overall cost for salaries from 2008/2009 to this proposed budget is up one -tenth of 1 %, or $329.00. It is the same scenario for the Police Department, but they have more employees. Their overall wages are up .66 %, a little over one -half of a percentage point, for a total of $5,178, which is spread over 11 employees. A salary adjustment for the Maintenance Specialist is proposed for various reasons, but primarily because of his ability to assist in a wide range of Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 10 activities. In previous years, maintenance specialists were not able to perform such functions. Capital is substantially reduced, but it is adequately provided for. Commissioner Wheeler asked what the amount of revenue would be if the millage rate was not increased. Town Manager Thrasher said it would be approximately $125,000 less. Commissioner Wheeler wanted to know, if the Town did not increase the millage rate and found a way to absorb the hit for property values, where could we pull $125,000 out of this budget? What would the Town have to endure in order to not move the millage rate? Commissioner Wheeler said that he is not advocating this, but he believes this would be a healthy exercise for the Town and very helpful when talking to residents when they ask why the Town changed the millage rate. Can we say that unless we change the millage rate it would cost a police officer, a car, a staff person, a reduction in services? Commissioner Wheeler asked Town Manager Thrasher to look into what the Town would have to do to absorb a decrease of $125,000 in revenue. Town Manager Thrasher noted that during this Commission Meeting a tentative millage rate must be set as it will be advertised. Clerk Taylor said that the millage rate set at the meeting can be lowered, but not increased. Commissioner Wheeler said he was comfortable with the concept, but he would like Town Manager Thrasher to look into how the Town would be able to absorb a decrease in revenue and not increase the millage rate and repeated that he is not advocating this, but believes it is a healthy discussion that the Commission should have. Commissioner Devitt asked if the proposed budget includes the new Fire Contract fees. Town Manager Thrasher confirmed that it does. Mayor Koch stated that there is a large increase in benefits. Town Manager Thrasher said that administrative benefits as listed show a decrease of .45 %. The new Administrative employee does not qualify for retirement benefits for 6 months and does not qualify for insurance benefits until after 30 days of employment, which the numbers attempt to reflect. The Police Department shows an increase of 2.72% in overall benefits, but benefits have not increased and the platform has not changed. This is the 3=d year the platform remains in consistent format. Town Manager Thrasher said that as insurance quotes come in, he may have to retract some of these statements, but what the proposed budget shows is a stable platform of benefits from last year to this year and, actually, from 2 years ago to this year. Concerning the Capital line item for Streets, Commissioner Wheeler asked if Town Manager Thrasher anticipates an expense. He asked if the number is based on history or does the Town anticipate spending the $35,000 on something specific. Town Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 11 Manager Thrasher said he does anticipate some things. There is the consistent need for paving and the challenge is when we do it and the type of paving process used. It was discovered that simple overlay in the core district does not work well. Commissioner Wheeler said that if the Town does it every year, the numbers are fine, but if the Town anticipates a specific expense, that would be different. Town Manager Thrasher said there is anticipation of a storm drain change -out problem at Polo and Banyan. He has no idea of what the extent would be, but a problem is coming to the surface. In addition, in discussions with the President of Place Au Soleil, there is a proposal for a cooperative effort between the Town and the Association for a modification to their entrance way. Commissioner Wheeler asked why the expenditure for Garbage Collection is $132,000 and on the Revenue side, it is $126,000 and wanted to know why the line items do not balance. He asked why the Town is not recovering solid waste cost through the revenue source. Town Manager Thrasher said he did not want to increase fees to residents. Commissioner Wheeler asked if the Town was recovering the cost through millage rate or user fees. He stated that the concept is to make the user pay and with a material change in garbage services he would rather recover the cost with garbage fees as opposed to increasing the millage rate. We do not want to bury a cost item into millage rate if there is a fee to recover it. The idea is to match the cost to the fee we charge. Vice -Mayor Orthwein said that would be her preference also, rather than bury the cost in the budget. Town Manager Thrasher said he assumes the Town is going with the roll back rate, which has worked 5 out of 7 years and believes it will work in a time when we have decreased values. There will be an increase in millage rate, but not an increase in taxes. Town Manager Thrasher said that the budget numbers for garbage are his guesses because he has not yet received information from Waste Management as to what the new fees will. Commissioner Wheeler said that we need to adjust our revenues to cover the costs. Commissioner Devitt asked about the $24,000 additional storage expansion design cost. Town Manager Thrasher said there was some discussion by the Commission about 4 months ago concerning the enlargement of our facility and he was anticipating design costs. Mayor Koch said there is a need for additional storage space on site. Commissioner Anderson asked if the $24,000 was for design and building. Town Manager Thrasher said it was for the design only. Mayor Koch felt it was high just for design. Commissioner Wheeler asked what the objection would be to paying a monthly fee to a storage facility off the island with the threat of hurricanes and flooding. Mayor Koch said he has witnessed the time and effort that goes into working around limited space and sees a need for a better and secure storage area on site rather than moving documents back and forth to the mainland. Clerk Taylor Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 12 said the Town does not retain many documents passed the date the State allows us to dispose of them. Staff is in and out of documents we have stored on site on a regular basis and can quickly answer a caller's question, provide a copy of a document or respond to a public records request in a timely manner. Roll plans and larger storage items are kept in the maintenance building. Commissioner Devitt asked if the idea is to add on to the main building or build a separate C facility. Town Manager Thrasher said he thought the talk was to add on to the main building, but it could be an addition to the maintenance building or a free - standing building. Vice - Mayor Orthwein said a free - standing hurricane -proof building would be a better option. Commissioner Wheeler asked if the half -cent sales tax in Florida's revenue sharing is determined by population. Town Manager Thrasher said that it is part of the formula and the State is becoming more involved with the distribution of funds. One significant thing is that the State is taking an additional $5.00 out of every ticket written. Sales tax is provided to us in the LGIR, which every local government receives, and it is the estimated yearly revenues for such things. The State has now revised the estimate from the previous year and it is no longer a method governments have as a tool for estimating their revenues. The revenue the Town generates from writing tickets is insignificant and other towns are writing more tickets and receiving less money. Commissioner Wheeler said that all of his preliminary questions have been answered and he will have others at the next meeting when we have the discussion concerning millage. 2. Proposed Millage for 2009 -2010 Town Manager Thrasher said that what the Commission had before them was a proposed millage rate of 3.0437. Commissioner Devitt moved and Commissioner Anderson seconded to adopt the proposed maximum millage rate not to exceed 3.0437. All voted AYE. 3. Certification of Rolled Back Millage Rate Town Manager said that the proposed Millage Rate is the same as the Roll Back Rate. The Roll Back Rate is 3.0437. Commissioner Anderson moved and Commissioner Devitt seconded to certify the Roll Back Rate at 3.0437. All voted AYE. 4. Date of First Public Hearing for Budget Adoption Town Clerk Taylor asked for a motion to set the date of the first Public Hearing for budget adoption on the regular meeting date of September 11, 2009 at 5:01 P.M. Commissioner Wheeler moved and Commissioner Devitt seconded to set the date of First Public Hearing for budget adoption on the regular Regular Meeting & Public Hearing Town Commission - July 10, 2009 Page 13 meeting date of September 11, 2009 at 5:01 P.M. All voted AYE. 5. Date of Second Public Hearing for Final Budget Adoption Town Clerk Taylor asked for a motion to set the date for the second Public Hearing for final budget adoption on the date agreed upon of September 23, 2009 at 5:01 P.M. Commissioner Wheeler moved and Commissioner Devitt seconded to set the date l for the second Public Hearing for final budget adoption for September 23, 2009 at 5:01 P.M. All voted AYE. D. Items by Mayor and Commissioners Mayor Koch reminded the Commissioners that the Fire Contract would be on the August Agenda. XII. Public. There was no public comment. XIII. Adjournment. Mayor Koch adjourned the meeting at approximately 10:10 A.M. Gail C. Abbale Administrative Assistant FORM 86 MEMORANDUM OF VOTING CONFLICT FOR COUNTY, MUNICIPAL, AND OTHER LOCAL PUBLIC OFFICERS KOCH. JR.. WILLIAM F: 545 Golfview Drive CITY NAME OF BOARD. OR THE BOARD, COUNCIL COMMISSION, AUTHORITY, OR COMMITTEE ON WHICH 1 SERVE IS A UNIT OF: X CCI IY . COUNTY 'OTHER LOCAL AGENCY NAML OF POLITICAL SUBDIVISION: Town of Gulf Stream, FL MY POSITION IS: X ELECTIVE APPOINTIVE WHO MUST FILE FORM 61111 This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board, council, commission, authority, or committee. It applies equally to members of advisory and non - advisory bodies who are presented with a voting conflict of interest under Section 112.3143, Florida Statutes. The requirements of this law are mandatory; although the use of this particular form is not required by law, you are encouraged to use it in making the disclosure required by law. Your responsibilities under the law when faced with a measure in which you have a conflict of interest will vary greatly depending on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form before completing the reverse side and filing the form. INSTRUCTIONS FOR COMPLIANCE WITH SECTION 112.3143, FLORIDA STATUTES ELECTED OFFICERS: A person holding elective county, municipal, or other local public office MUST ABSTAIN from voting on a measure which inures to his special private gain. Each local officer also is prohibited from knowingly voting on a measure which inures to the special gain of a principal (other than a government agency) by whom he is retained. In either case, you should disclose the conflict: PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly the nature of your interest in the measure on which you are abstaining from voting; and WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for recording the minutes of the meeting, who should incorporate the form in the minutes. APPOINTED OFFICERS: A person holding appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure which inures to his special private gain. Each local officer also is prohibited froth knowingly voting on a measure which inures to the special gain of a principal (other than a government agency) by whom he is retained. A person holding an appointive local office otherwise may participate in a matter in which he has a conflict of interest, but must disclose the nature of the conflict before making any attempt to influence the decision by oral or written communication, whether made by the officer or at his direction. IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH THE VOTE WILL BE TAKEN: • You should complete and file this form (before making any attempt to influence the decision) with the person responsible for recording the minutes of the meeting, who will incorporate the form in the minutes. • A copy of the form should be provided immediately to the other members of the agency. • The form should be read publicly at the meeting prior to consideration of the matter in which you have a conflict of interest. 1 IrjW \I H ,1, or IF YOU MAKE NO ATTEMPT TO INFLUENCE THE DECISION EXCEPT BY DISCUSSION AT THE MEETING: • You should disclose orally the nature of your conflict in the measure before participating. • You should complete the form and file it within 15 days after the vote occurs with the person responsible for recording the minutes of the meeting, who should incorporate the form in the minutes. OF LOCAL OFFICER'S INTEREST ►, Wi 11 i am F _ Koch , Jr . , hereby disclose that on July 10, 2009 , 19— (a) A measure came or will come before my agency which (check one) inured to my special private gain; or X inured to the special gain of William F. Koch, Jr. Realty , by whom I am retained. (b) The measure before my agency and the nature of my interest in the measure is as follows: The real estate agency with which I am associated participated in the sale of the property located at 555 Palm Way, Gulf Stream, FL. The-Agent/Architect/Contractor for-this project, William Wietsma,is applying for permit approval to construct a new dwelling on this property. -The decision rests with the Town Commission which I am a member of. 7_1n_ne _ Date Filed Signature NOTICE: UNDER PROVISIONS OF FLORIDA STATUTES §112.317 (1985),'A FAILURE TO MAKE ANY REQUIRED DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY'ONE OR MORE OF THE FOLLOWING: IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE Ok EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND „OR A CIVIL PENALTY NOT TO EXCEED 55,000. _E FORM 10 • 10-M PAGE