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Minutes 09-13-99 SPECTAL CTTY COMMI'SS1'ON I~IEETTNG HELD TN COPlMI'SSTON CHAMBERSf CZl'Y HALL, BOYNTON BEACH, FLORZDA ON I~IONDAYf SEPTEf4BER 13~ :~999 AT 6:00 P.Pl. PRESENT Gerald Broening, Mayor Henderson Tillman, Vice Mayor William Sherman, Mayor Pro Tem Nellie Denahan, Commissioner Ronald Weiland, Commissioner Wilfred Hawkins, Interim City Manager James Cherof, City Attorney Sue Kruse, City Clerk T. OPENTNG - I~layor Gerald Broening Mayor Broening called the meeting to order at 6:05 p.m. He announced that Hurricane Floyd was approaching and a State of Emergency had been declared in Palm Beach County. As a result, there would be mandatory evacuation of the barrier islands, mobile home/trailer parks and areas subject to flooding. Mayor Broening announced that Attorney Cherof would provide the particulars with regard to this meeting. Attorney Cherof reported that this was the first formal step of the adoption of the Fiscal Year 1999/2000 budget. Under Florida law, two public hearings are required. Prior to the conclusion of this first budget public hearing, the Commission would amend the tentative budget if necessary, adopt a tentative budget, recompute the proposed millage rate and publicly announce the percent of the rate. The Resolution attached to the agenda back up for this meeting reflects a tentative millage rate of 7.8160. If unamended, it would reflect a 3.25% increase above the computed rollback rate. Diane Reese, Finance Director, reported that the City of Boynton Beach would not go to rollback rate this year. Our plans are to continue with the same millage rate as last year and that proposal was sent to the County. The changes in the upcoming budget that Were made between the workshop meeting and this meeting are reflected in the back-up materials included with the agenda. The bottom line figure remains the same except in the Golf Course. As a result of the City taking over the operation of the restaurant at the Golf Course, the bottom line has increased. There is a decrease in the bottom line of the Vehicle Service Fund due to the elimination of the purchase of some replacement vehicles that can be delayed for an additional year. Ms. Reese recalled that a question had been raised about the total percentage of budget with respect to "overall training". A total of $7:L0,000 has been budgeted for all training in the City that includes business meetings, regular training classes and college tuition reimbursements. This figure amounts to .8% of the total budget. Our total budget amounts to $89,217,000. ' 'M~EE'I'ZN6 MZNUTES SPECTAL CtTY COMMTSSZON BOYNTON BEACH~ FLOR.I:DA SEPTEMBER 13f 1999 Commissioner Denahan asked Ms. Reese if the following items are all connected with professional development: travel, business meetings, certifications, training aids, books and publications, training seminars and education. Ms. Reese advised that books and publications are not connected with professional development. This line item relates to business meetings or courses taken by employees. This figures does not relate to the books and publications we receive in-house. Commissioner Weiland asked how much of the figure of $710,392 went for the Architecture for Excellence training. Ms. Reese explained that $194,221 has been spent so far this year. This is not the total amount of money spent on the Architecture for Excellence. The $194,221 came out of the regular training programs. Commissioner Denahan requested that Ms. Reese provide the Commissioners with the printouts showing the expenses associated with professional development. Commissioner Denahan questioned why there were no funds for surplus or sale of surplus. She asked whether everything was so old that it had to be thrown away. Ms. Reese advised that an auction of surplus materials was recently conducted. There was a very poor turnout and many items were put back into surplus. We do not realize a great deal of money on surplus furniture because another department usually takes anything that is worthwhile. The City Commission is provided with a list of surplus items prior to the auction being held. Mr. Hawkins added that much of the office equipment is recycled unless it is unusable. Commissioner Denahan noted that there was a great deal of money spent on new office furniture and cabinetry. Mr. Hawkins explained that there is an effort underway to get ergonomically correct furniture to help decrease Workers Compensation injuries. Mayor Broening pointed out that a good portion of the expenses associated with new office furniture is attributed to the reestablishment of the Engineering Division. Mayor Pro Tem Sherman referred to the handouts presented by Diane Reese. The total cost of overtime associated with the Architecture for Excellence was listed as $50,778. Ms. Reese advised that this was the total figure that was reported by the departments to her office. When Mayor Pro Tem Sherman asked Ms. Reese if she recalled previously providing him with information that the company that conducts the Architecture for Excellence was written checks in excess of $700,000, Ms. Reese responded negatively. She recalled providing Mayor Pro Tem Sherman with information that indicated that the City wrote checks to the company in excess of $250,000. However, we have not paid this company $700,000. To date, we have paid Falcon Management Company $301,000. That figure does not include overtime costs. · MEETI'NG MTNUTES SPECTAL CTTY COMMI'SSTON BOYNTON BEACH~ FLORZDA SEPTEMBER 13~, 1999 Commissioner Weiland said he had concern about the expenses associated with the replacement of furniture. The existing furniture looks fine and does not appear to be worn out. He asked if there is a need to purchase all of this furniture because there is a great deal of money being spent in this budget. Ms. Reese said she would have to contact each department to get justification for their requests. Mr. Hawkins added that in addition to the City purchasing ergonomically correct furniture, the furniture is needed for the new personnel coming on board. Commissioner Denahan asked if all of the adjustments made to new personnel were reduced to nine-month positions. Ms. Reese responded affirmatively and said these personnel will no.t be hired until .lanuary 1s. This was done because the hiring process takes time and many of the new hires could not be processed to start October 1~. Therefore, the costs were delayed for the first three months of the fiscal year. Commissioner Weiland referred to the Training Coordinator indicated under Human Resources. He asked if this would be the same person that would implement the Architecture for Excellence. Mr. Hawkins responded negatively and explained that this Training Coordinator would handle the employee development program, professional training courses; the Boynton University program that is coming on-line through Human Resources. With respect to the Architecture for Excellence, Commissioner Weiland was under the impression that two people would be hired for that implementation. Mr. Hawkins explained that the Architecture for Excellence Coordinator would be responsible for making sure that everyone stays on top of the training. The Training Coordinator in Human Resources will work along with that person to accomplish that goal; however, he/she will have other duties as well. Commissioner Weiland inquired as to the hire date for the Coordinator for the Architecture for Excellence. Ms. Reese said that position would be a 12-month position. When Mr. Hawkins said that person would be hired as soon as possible, Commissioner Weiland questioned whether or not that would be necessary. He felt the Training Coordinator for Human Resources might be necessary, but inquired whether the second person would be necessary until the completion of the Architecture for Excellence program. IVlr. Hawkins said the City would like to hire that person as soon as possible so that he/she could get acclimated to what the consultants are doing. Dale Sugerman, Assistant City Manager, requested that the Commission consider funding the position of 1TS Director for 12 months since staff is ready to make an offer on October Ist. · MEET'[~' MTNUTES SPEC1'AL CTTY COMMI'SSTON BOYNTON BEACH~ FLOR.I:DA SEPTEMBER 13, 1999 Commissioner Weiland asked for a report on the position of Neighborhood Service Coordinator. Mr. Hawkins advised that this would be a second position to assist the Neighborhood Project Specialist. A person is needed to handle the administrative work and to attend afternoon and evening meetings. With respect to the Recreation budget, Commissioner Weiland asked for a report on the two positions of Recreation Specialists. IVls. Green said it is anticipated that one Recreation Specialist will be hired for the Senior Center and the other will be for the Hester Center and Athletics. Commissioner Weiland referred to the Parks and Landscape Planner in the Parks Division budget. Mr. Wildner explained that he and Kevin Hallahan are presently handling the duties and responsibilities that would be taken over by the Parks and Landscape Planner. Kevin Hallahan's current position works with the Development Department. The new position will take over the duties that Hr, Hallahan handles with respect to landscape planning and park planning. Mr. Wildner explained that while the current staff is able to handle small landscape jobs, additional assistance is needed for the large-scale projects needed throughout the City. Mr. Hawkins added that the addition of median maintenance would require additional project management. Commissioner Weiland asked for a briefing on the position in the Community Redevelopment Fund. IVlr. Hawkins said there is currently one professional administrator in Community Redevelopment. We are anticipating hiring another professional administrator to handle the City's S.H.T.P. program and housing program. There are currently two inspectors covered under this budget who work with the contractors. The new professional administrator will provide relief so that Ms. Sherrod can focus on sub-recipient grants. Commissioner Denahan asked if LeGrace Circle was addressed in the upcoming budget· Mr. Sugerman advised that LeGrace Circle is getting attention under the current budget. Staff will be bringing a swale maintenance program before the City Commission within the next 30 days. The budget does not address the larger piping and structure-type drainage. The type of work involved would probably be covered by a bond issue because of the major scope of the project. LeGrace Circle is receiving attention in the existing budget and will receive some attention in the soon-to-be-proposed swale maintenance program. Commissioner Denahan said LaGrace Circle would not be addressed in the swale maintenance program because it is an anomaly. Mr. Sugerman advised LeGrace Circle is one of the six neighborhoods identified as needing some specific stormwater attention. Commissioner Denahan said she realized that some work had been done, but questioned whether that work was a "temporary Band-Aid". Mr. Sugerman responded affirmatively and explained that this "MEETTNG MZNUTES SPECZAL CtTY COMMTSS]:ON BOYNTON BEACH~ FLOR.I:DA SEPTEMBER 13, 1999 year's budget did not have a massive capital program for making these kinds of repairs. Mr. Sugerman explained that a "City-wide fix" would take a bond issue. When Commissioner Denahan asked if Camp, Dresser & iVlcKee was investigating this project, Mr. Sugerman explained that their efforts are geared only for the swale maintenance program at this time. When the stormwater maintenance program is brought before the Commission, it would require significant funding over the course of the next three years. This would be accomplished through the monthly stormwater fee. A bond issue would be required for the citywide project. Commissioner Weiland pointed out that there is a $90,000 budget for storm drains. He questioned why it was necessary to budget this money. He said he is aware of the fact that monies have been borrowed in the past from the Utilities account and the Charter was changed so that we do not have to repay those funds. He questioned the reason for borrowing that money and pointed out that if that money had not been borrowed, there would be enough money in the Utilities account to cover that $90,000. Mr. Sugerman said the $90,000 is an annual maintenance number. The City could do $90,000 a year in capital that is geared only to utility maintenance. The issue of borrowing funds from Utilities and transferring them legally elsewhere in the City has nothing to do with the annual appropriation for Utility Capital :Improvements/Utility Maintenance Tmprovements. These are two separate and distinct issues. The $90,000 is what we plan to spend next year on capital for Utility functions. Commissioner Denahan referred to the School Board administered childcare program that was recently discussed at a City Commission meeting. Last year, at the July 7th City Commission meeting, the Commission was told that more information would be brought forward for this year's budget so that the Commission could budget better. However, only $10,000 has been budgeted again for next year. The request this year was for $43,000 and last year's request was for $:[9,498. There are 54 children in the City that will be jeopardized at four different locations if the appropriate amount of money is not set aside as a subsidy. Commissioner Denahan asked how many students are being served and how many centers are still being served. Mr. Hawkins advised that the information would have to be provided by the County. Mr. Hawkins said he did this research this year, but the County does not provide all of that detail. :It must be requested. He offered to get the information for the Commissioners. Commissioner Denahan said she was in favor of spending the $:[0,000 that was budgeted in this year's budget, but requested specific information in order for the Commission to be able to budget appropriately to ensure that the programs the children are receiving would be fully funded. Mr. Hawkins explained that when The School Board budgets for this program, they do so based upon the number of children in the program per city. Mr. Hawkins does not know which cities are participating. Since the numbers are higher this year, either some of the cities are not participating or the level of matching funds required by the County has increased. This money MEEI"~NG MtNUTES SPECTAL CI'TY COMMISSION BOYNTON BEACH, FLORIDA SEPTEMBER 13f 1999 comes from the federal government, is filtered through the State to the counties and it is a matching fund scenario. Commissioner Denahan reminded the Commissioners that this program is based on the needs of the working poor. She feels the City of Boynton Beach needs to take a stronger stand for our children. Vice Mayor Tillman pointed out that the City of Boynton Beach does not have to give the Palm Beach County School District the amount they request. Although Vice Mayor Tillman is concerned about our children, he feels they are using children as a catch. The School District is trying to get as much money from the cities as possible. Every time a city drops out, our contribution will increase. We are out in front by contributing $10,000 because this is an item that the School District should be covering entirely. This City participates on a level that is comfortable and we do not have to cover what other cities should be doing. Vice Mayor Tillman said the City should not be extorted because others are not participating. Vice Mayor Tillman does not believe staff should have to research this issue to get all of the information that is available. The School District is making a request for funds and should provide all information that is available when the request is made. Commissioner Denahan disagreed with Vice Mayor Tillman's remarks about extortion because it is based on the needs of the working poor. We use this afterschool program and should take a strong stand on providing this service for the children of Boynton Beach. We are providing a minimal amount of money. Commissioner Denahan believes that more money should be set aside as a subsidy for next year. Vice Mayor Tillman disagreed and pointed out that the City of Boynton Beach provided $100,000 for Congress Middle School for the math/science technology. The City also provides funding for our own daycare and funding for summer programs. Vice Mayor Tillman said a fair and equitable breakdown should be developed showing how much each city should provide. Commissioner Weiland also pointed out that the City is in a position of having to contribute funds for maintenance and police patrol with respect to the high school in Quantum Park. This may not be our responsibility, but it is important to remember that the children of Boynton Beach will benefit by our involvement. Mayor Broening reminded the Commissioners that this is a subject he suggested for the strategic planning session that he recommended at the last meeting. He feels The School Board could "squeeze" more participation from their budget. Mayor Broening feels the Commission will have to determine its role in education in a more formalized way. In response to Commissioner Denahan, Ms. Reese advised that if the Commission wanted to appropriate more money to this line item, there is money available in $150,000 reserves in the City Hall budget. The contribution to Human Services line item was increased from $10,000 to $20,000 because of requests we have received in the past. ~[f the Commission decides to contribute $20,000 to The School Board, the additional $10,000 would come out of reserves. Mayor Broening was not in favor of providing additional funding to the School District. There is a tremendous amount of money raised in the School District and it is their responsibility to MEETING MINUTES SPECIAL CITY COMMISSION BOYNTON BEACH, FLOR.I:DA SEPTEMBER 13, 1999 provide education. The problem in this case is underfunding by The School Board. If there were a problem in the future, Mayor Broening would take the funding out of contingency. Commissioner Denahan expressed a different opinion and feels this would be an investment in our future and not taking this stand for the children is jeopardizing the children's opportunities to stay in a healthy environment in the afternoon when there is no parent at home. She does not believe this is an issue of subsidizing education or "double dipping". Mayor Broening said he is willing to address this issue at the strategic planning session. PUBLZC HEARt'NG ON 1999/2000 PROPOSED BUDGET MAYOR BROENING ANNOUNCED THE PUBLIC HEARING. Attorney Cherof announced that a second budget public hearing would be held at 6:00 p.m. on September 21st in Commission Chambers. Herb Suss expressed concern about overtime costs for the Police Department and the Architecture for Excellence. He asked if the figures of $900,000 and $50,000 respectively are accurate and inquired about other overtime costs throughout the City. Mr. Hawkins explained that he was not prepared to provide those figures because there are a number of departments that incur overtime. Mr. Suss requested that he be provided with those figures. Mr. Suss said he was on the School Board in New York City and administered a $200 million budget. The Mayor was correct in his remarks about The School Board budget. They have the money for the students and it is their responsibility to come up with that money. When Mr. Suss asked how much money was in reserves, Mr. Hawkins said $150,000 would go into reserves if the Commission adopts the proposed budget. Mr. Suss questioned whether the Police Department's contract is part of the proposed budget. Mr. Hawkins responded affirmatively. Attorney Cherof advised that the negotiations for the Lieutenants are complete, but the contract is being prepared. Mr. Suss requested answers to his questions by the next meeting. Mr. Suss also complained that the taxpayers did not have a copy of the budget to review along with the Commissioners. Ms. Reese explained that the Finance Department puts three copies of the budget at the Library and one in the City Clerk's Office for public review. Mr. Hawkins said it is standard procedure for the City to place copies of the budget in the Library for public review. In addition, we are required to advertise our budget workshops. Mr. Hawkins recommended that members of the public contact the City Manager's Office or the Library for information in this regard. Anne Centi asked how much money was budgeted for the Senior Center. Ms. Green said a total amount of $124,783 has been budgeted in all accounts. MEETING MINUTES SPECIAL CITY COMMISSION BOYNTON BEACH, FLORIDA SEPTEMBER 13~ 1999 In response to Commissioner Denahan, Ms. Green advised that money has been budgeted for the upcoming fiscal year for the track team. Harvey Oyer, 511 East Ocean Avenue, said he pays more than $15,000 in real estate taxes. He is concerned that the citizens are getting full, fair value from those tax dollars. He recommends zero-based budgeting rather than using the previous year's budget and adding to it. He feels four copies of the budget for public review by 50,000 citizens is not an intelligent approach. Mr. Oyer believes a change in the direction of thought is needed to make people want to live in this community. Code Enforcement irritates many people. He feels there are too many people in Code Enforcement and the City is spending too much money in this area. He recommended cutting this Division in half. THERE WAS NO ONE ELSE WHO WISHED TO SPEAK AT THE BUDGET PUBLIC HEARING. Commissioner Weiland said he would like to put $50,000 into the budget for the internal audit he recommended. Ms. Reese advised that the funding would have to be appropriated by the City Commission. IVlayor Pro Tem Sherman reminded the Commissioners of the Architecture for Excellence presentation that was made at the September 7th meeting and his request for time at the next meeting to hear the other side of the issue. It is his understanding that approximately 40% of the departments have been through the Architecture for Excellence program. He asked if it is intended that the remaining employees will complete the program during the upcoming budget year. He also asked if the City has a controlled contract with the vendor whereby they agree to train a certain number of people for a certain amount of money. That amount of money would not be exceeded. Mr. Hawkins explained that the proposed dollars in the upcoming budget for AFE would complete the training throughout the City. That amount of money would be $144,000. With respect to a contract, Attorney Cherof advised that an "open contract" exists whereby they provide services when requested. Mayor Pro Tem Sherman asked that this situation be changed so that there is an accountability contract. Attorney Cherof felt this could be accomplished. Commissioner Denahan recalled that during the budget workshop meeting, Chief Gage was unavailable for comment about the Architecture for Excellence training as it relates to the Police Department. She asked Deputy Chief Tmmler if he endorses this type of professional development. Deputy Chief Tmmler said Chief Gage believes this program can benefit the Police Department. Deputy Chief Immler said he has no experience with the program. A. Proposed Resolution No. R99-:1.:1.9 Re: Adoption of Tentative Millage Rate for Fiscal Year 1999/2000 Attorney Cherof read Proposed Resolution No. R99-119 by title only. MEETTNG MINUTES SPECTAL CITY COMMTSSION BOYNTON BEACH, FLORZDA SEPTEMBER 13~ 1999 Attorney Cherof announced that if Proposed Resolution No. R99-119 was adopted as proposed, the proposed millage rate would be 3.25% above the computed rollback rate. Motion Vice Mayor 'lillman moved to approve Proposed Resolution No. R99-119. Commissioner Denahan seconded the motion. City Clerk Sue Kruse polled the vote. The vote was unanimous. B. Proposed Resolution No. R99-120 Re: Adoption of Tentative Budget for Fiscal Year 1999/2000 Attorney Cherof read Proposed Resolution No. R99-120 by title only. Motion Vice Mayor Tillman moved to approve Proposed Resolution No. R99-120. Commissioner Denahan seconded the motion. City Clerk Sue Kruse polled the vote. The vote was unanimous. C. First Reading of Ordinance to Adopt. Final Budget for Fiscal Year 1999/2000 Attorney Cherof read Proposed Ordinance No. 099-29 by title only. Motion Vice Mayor Tillman moved to approve Proposed Ordinance No. 099-29. Commissioner Denahan seconded the motion. City Clerk Sue Kruse polled the vote. The vote was unanimous. Attorney Cherof reiterated that the second Budget Public Hearing would be conducted on Tuesday, September 2:[, 1999 at 6:00 p.m. in Commission Chambers. The final millage rate and final budget will be adopted at that time. Copies of the budget are available for review at the Library and in the City Clerk's Office. ZII. AUDIT REVIEW AND PRESENTATION BY ERNST & YOUNG Paul Bremer, Ernst & Young, reported that under Florida Statute and rules of the Auditor General, the City's auditor has certain responsibilities. The audit must include: A report on the fairness of the City's financial statements; · A report on compliance and internal controls according to the review of the financial statements of the City; · A report on compliance and internal controls over the use of grant funds or A133 funds; · A management letter that reports on anything that is found by the auditor to be important to the City's financial perspective; · A report that is designed to bridge the communications gap between auditors and laymen. · A report that the audit was conducted under generally accepted auditing standards; MEETING MINUTES SPECIAL CITY COMMISSION BOYNTON BEACH, FLORIDA SEPTEMBER 13, 1999 A report to the City on any significant adjustments that occurred during the audit, what changed in the financial statements from the last interim financial statements, any accounting estimates contained in the financial statements, any illegal acts, errors or irregularities, disagreements with management and any difficulties encountered in reporting the audit. Mr. Bremer advised that the Management Letter is one of the key documents he reports on each year. The opinion on the City's financial statements has been consistently unqualified. During the course of the audit, certain things are done relative to testing. Testing is changed each year and the audit program is challenged each year. Auditors are rotated to provide a fresh look each year and the departments are rotated continuously to provide an enhanced review of the City's finances. This year, the procedures began in May for the 9/30/99 audit and they will be completed in December or January of 2000. An opinion will be issued in late January. Mr. Bremer explained that this is not an internal audit or an operational audit. He does not look at every line item and account for every dime. ~[t is an audit under generally accepted auditing standards. Commissioner Weiland agreed with Mr. Bremer's comments regarding the audit. However, he referred to the 1998 closing letter that stated "our consideration of internal control over compliance would not necessarily disclose all matters in the internal control that might be material weakness". He pointed out that Mr. Bremer's audit is a brief overview of different departments or parts of departments. This is not an in-depth investigation of the department's operation. lVlr. Bremer explained that he does not perform an operational aUdit. :It is an audit of the financial statements of the City of Boynton Beach. The auditors look at the General Fund with respect to revenue funds and debt service funds and they test the material risks of the City from a financial Perspective. Tt is not designed to look at operations to see if they are effective or efficient. Mr. Bremer said the language read by Commissioner Weiland is standard professional language that is guidance used by the auditors, if anything was determined to be a reportable condition that is an item of such significance to cast concern over internal control, that must be reported to the City. The auditors are required to review the internal control, evaluate is effectiveness and report anything of a material perspective. Commissioner Weiland confirmed with IVlr. Bremer that a material weakness is a condition in which the design or operation of one or more of the internal controls does not reduce to a Iow- level risk. If it is not a Iow-level risk, it must be somewhat of a risk. "That non-compliance with applicable requirements of law, regulation, contracts and grants would be material in relation to a major federal program being audited and may not be detected within a timely period by employees in a normal course of performing their assigned functions. We noted no matters involving internal control over compliance in this operation that we consider to be material weakness." 10 MEETING MINUTES SPECIAL CITY COMMISSION BOYNTON BEACH, FLORZDA SEPTEMBER 13~ 1999 Commissioner Weiland agreed that Ernst & Young do not perform an operational audit and he believes the City of Boynton Beach needs to look further than what Ernst & Young is doing. Commissioner Weiland does not have a problem with the audits performed by Ernst & Young but wants deeper investigation into funds being appropriated from one account to another, frivolous spending and the way the money is being managed. Mr. Bremer said he was not present at the last meeting and was unaware that there was a question about what Ernst & Young was doing. The audit they conduct is under generally accepted auditing standards and the rules of the State of Florida. Mr. Bremer confirmed that Commissioner Weiland is recommending a completely different type of audit. Commissioner Weiland agreed and stated that he was not questioning what Ernst & Young had done. Mayor Pro Tem Sherman asked Mr. Bremer if it would be possible for him to provide the City Commission with a cost quote on "going the extra mile" suggested by Commissioner Weiland. Mr. Bremer said Ernst & Young could respond to the request for services if a specific outline of the services was provided. Ernst & Young would respond if requested. Commissioner Weiland said he probably should have brought this issue up a few months ago rather than at this time when the Commission was being asked to approve this budget. However, he pointed out that he is continuously hearing concerns of residents and felt it was necessary to raise this issue. Commissioner Weiland said he continuously hears there is no money available in the CRA account to get projects done. The money from the TTF accounts is for use in that area only. He wonders where the money from the T~F account is going. Sole source purchasing is another area of concern. The City is required to get three bids to buy things. Tn some cases, we only get one bid. He is concerned that the City may be spending too much money on purchasing certain items by not obtaining three bids. When money is borrowed from the Utilities account, and it is legal not to pay that money back, it is a pot of gold at the end of a rainbow. The funds are being depleted out of that account and when it is time to address stormwater run-off, a bond issue would be required. The residents would have to pay for those bonds or certain areas would be assessed. This should not happen and Commissioner Weiland wants to find out why they are happening. Commissioner Weiland referred to the City providing continental breakfasts and meals for the Architecture for Excellence program and pointed out that this is not a necessary expense. He feels this is money that should not have been spent and it is his opinion that further investigation is needed. Commissioner Weiland said he would like to know how much money we have in escrow in the Utilities account. Ms. Reese explained that we have restricted assets and enterprise funds. Bond money is restricted for certain purchases. Commissioner Weiland said he would like a report on the unrestricted funds. Ms. Reese said she would review the books and provide the information the next day. Mayor Pro Tem Sherman asked Ms. Reese to report on the amount of money available in case of emergency. Ms. Reese said that there is approximately $6 million set aside in the General Fund reserve. When Mayor Broening asked how that figure compares as a ratio of general revenue with other similar cities, Ms. Reese said that for a city the size of Boynton Beach, this is a healthy amount 11 MEETZNG M:]:NUTES SPECZAL CTTY COMMTSSTON BOYNTON BEACH~ FLORZDA SEPTEMBER 13, 1999 of money. ~[t is 10% of our budget. Money has been added to that reserve each year. We have been under budget for the last three years and the excess is added to the reserve. Commissioner Weiland pointed out that $194,221 of the training budgets of different departments was used for Architecture for Excellence. Chief Gage said the original cost of implementation of this program for upper staff was $30,000. When they realized this plan needed to be implemented down the line and the funding was not available, former City Manager Kerry Willis directed staff to take the money from the training budgets of each department. Those funds were set up to train employees in their fields, i.e., EMS, Police. :If money was not budgeted at that time, the program should not have moved forward. The funds should have been budgeted the following year to start the program. Mayor Broening questioned whether or not the previous Commission approved that. Mr. Hawkins pointed out that the expenditure should have come back to the City Commission as admitted by former City Manager Willis. That was an oversight and that is why this year's budget shows the amount of money it will take to complete the training. Herb Suss pointed out that $50,000 would put an additional police officer on the street. He is opposed to an audit on an audit. He had a further concern about approving a budget and then having an internal audit. PROPOSED RESOLUTTON NO. R99-121 RE: AUTHORTZTNG EXECUTZON oF THE DEVELOPMENT REG]:ONS CORE GRANT AGREEMENTS FOR THETR ROUND 'rTl' FUNDTNG Attorney Cherof read Proposed Resolution No. R99-121 by title only. Motion Vice Mayor-fillman moved to approve Proposed Resolution No. R99-121. Commissioner Denahan seconded the motion. City Clerk Sue Kruse polled the vote. The vote was unanimous. PROPOSED RESOLUTZON NO. R99-122 STUNSON AS CI'TY MANAGER RE: APPO]:NTZNG .1OHN Vice Mayor Tillman said it pained him to have to go through this again. He said there were a number of things that had to be put in order since the City Commission did not have the legal authority to appoint a City Manager at the September 7th meeting for the following reasons: 2. 3. 4. At the previous meeting, the City Commission decided to review all original applicants. All Commission members voted on that. The minutes for the meeting in August were adopted with no mention of amending the previous vote at the last meeting. The agenda for the September 7th meeting was adopted without adding the appointment as an item for discussion. There was no proposed notice given stating that the City Manager would be appointed at the September 7th meeting. Tonight's resolution is an 12 MEETTNG MINUTES SPECTAL CITY COMMTSSION BOYNTON BEACH, FLOi:LtDA SEPTEMBER 13, 1999 affront to this City and it is done to cover what was done wrong on September 7th. Mr. Stunson could not be appointed because he was part of the original process that was rejected by the City Commission. Therefore, his name could not possibly come up. If that was the case, then the entire number of applicants that were originally placed in the process must be reviewed. Vice Mayor Tillman accused the City Commission of committing a grave wrong on September 7th in his absence. He is the senior member of the Commission. Vice Mayor Tillman felt the City could be putting itself into dire straits if it moved forward with the Resolution at this meeting. He said everything the Commission did at the last meeting was wrong. When Vice Mayor Tillman asked City Attorney Cherof the legal affect of the Commission's vote at the September 7t~ meeting, Attorney Cherof advised that he explained that any action at that meeting had no binding legal affect on the Commission. The only way the City Commission could appoint a Manager in this City under its Code is to do so by Resolution. That Resolution is on this agenda and would be the formal action. Motion Commissioner Weiland moved to approve Proposed Resolution No. R99-122 appointing .lohn Stunson as City Manager. Commissioner Denahan seconded the motion. Mayor Broening said he voted affirmatively on the motion to appoint John Stunson when he cited a need for compromise. He explained at that time that compromise is the "soul of politics". This justified his anguished position at the time. Vice Mayor Tillman is the senior member of the Commission and he was not present at the time of the vote. It is possible that something he might have said at that meeting could have altered the outcome of the vote. He believes there is a responsibility for the Commissioners to compromise. Mayor Broening did not believe there was a legal issue; however, he felt there was a moral issue of balancing the judgments that had to be made. He pointed out that he was again faced with an agonizing decision. Vice Mayor Tillman recommended setting aside what happened at the September 7th meeting and suggested going forward with what happened at the last meeting in August. He questioned what was going on. He explained that a process that the Commission put in place resulted in the applicant that came out #1. The Commission is now voting for #2. He questioned what happened to the process that was put in place and the fairness of the situation. He also questioned whether or not the Commission's "word" was any good. The Commission hired people to do this job and now the Commission is going with the #2 person. This would be a total injustice and would be a backward move for the City of Boynton Beach. Vice Mayor Tillman said he would not stand for this. Commissioner Weiland pointed out that although Vice Mayor Tillman felt this action should not take place at this time, it should not have taken place in April when Vice Mayor Tillman walked an item onto the agenda under New Business to appoint the :Interim City Manager as City Manager. There was a 3-2 vote that night. He pointed out that the Commission operates under the Sunshine Law and no one should have been aware that the item was going to be 13 MEETrNG IVlZNUTES SPEC~L CI'TY COMMTSSZON BOYNTON BEACH~ FLOI~tDA SEPTEMBER 13, 1999 discussed that night. However, Commissioner Denahan was well prepared to speak on why the Commission should not do that process on that night. Commissioner Weiland wondered why everyone was well prepared to speak when the item was not on the agenda. Vice Mayor Tillman inquired if Commissioner Weiland was accusing Commissioner Denahan of something. When Commissioner Weiland responded negatively, Vice Mayor Tillman asked why Commissioner Denahan's name was raised in conjunction with him walking an item onto the agenda. Vice Mayor Tillman said his action was legal because he asked for the item to be placed on the agenda and there was no objection by any of the Commissioners. Mayor Pro Tem Sherman felt this was a painful discussion and suggested ending the conversation on this subject. He said he backed Wilfred Hawkins as far as he could take him. The City needs a City Manager now. The Commission was forced to make a difficult choice and did so. Tn the interest of the City of Boynton Beach, the Commission should stop having to do this over and over again. MAYOR BROENTNG OPENED THE PUBLIC AUDIENCE. Sunny Garcia, Vice President of Rolling Green, said he and the people he represented did not agreed with the Commission's choice and feel the Commission should express its gratitude to Wilfred Hawkins in the following ways: Recognize him for the fine job he has done while serving as Interim City Manager and acknowledge that he has demonstrated his loyalty and dedication to the City by assuming this difficult task. Recognize the appreciation for this service by changing his former rank of Assistant to the City Manager to Assistant City Manager or Deputy City Manager with appropriate salary adjustment. Mr. Garcia does not feel either of these requirements are unreasonable since we have a large City that is growing everyday and with many projects taking place. Mr. Garcia feels three administrators are needed to serve this City and its residents and he wants someone of the caliber and efficiency of Mr. Hawkins as one of those administrators. Terrence Pereira, 161 NE 19th Avenue, referred to Mayor Broening's reference to "compromise being the soul of politics". However, he questioned when we started to sell what is right for the price of politics. He inquired why the Commission would sell out on an agreed- upon process for the sake of politics. Mr. Pereira said Mr. Hawkins interviewed for a job and came out #1. Compromise has nothing to do with the situation. Mr. Hawkins was #! and should get the job. He recommended that the Commission not sell out. Eddie Mitchell, 329 NE 12th Avenue, believes everything that was done at the last meeting in terms of the City Manager was illegal. He said the attorney advised the Commission but the Commission would not listen. He accused the Commissioners of wanting to do things their way. This is not necessarily good for the City. The item was not on the agenda for the September 7th meeting. The Commission was supposed to consider a workshop. He accused the Commissioners of cahooting outside the Chambers, coming back in and taking a straw vote to 14 MEETING MTNUTES SPECIAL CTTY COMiVlISSTON BOYNTON BEACH, FLOI~DA SEPTEMBER 13, 1999 appoint a City Manager. He inquired why this item was not added to the agenda at the start of the September 7th meeting. He said this was illegal and the Commission is setting itself up for a suit. He said the Commissioners know they don't know what they are doing, won't admit it and won't listen to the attorney. He accused the Commissioners of being influenced by outside sources and said the citizens of Boynton Beach know that. An~lela Ellis, resident of Boynton Beach and Teacher's Assistant at Conqress Middle School, said she is discouraged that this is spitting in the face of someone who is working in a position and has proven himself day in and day out. Mr. Hawkins has shown the Commission that he can do the job. The Commission does not want to talk about the issue because they don't care. Herb Suss, resident of Boynton Beach, pointed out that what the Commission did at the last meeting at midnight was like what was done at Pearl Harbor in 1941. He viewed politics at its lowest on September 7th. Mr. Suss feels that by moving this issue on, the Commission will divide the community. He urged the Commissioners to stand tall and admonished the Commissioners for what they have put Mr. Hawkins through over the last three or four months. Mr. Suss said he has no faith or confidence in this Commission and questions how this Commission could represent him. He urged the Commissioners to be world class and vote for Wilfred Hawkins. Veronica I~lackey, 180 NE 19th Avenue, said she did not want to get involved in this discussion. However, she asked Commissioner Weiland some pointed questions about HR procedures, the process and policies, the HR interviewing tools and the strategies and procedures regarding the consulting firm that was hired by the City of Boynton Beach and the Commission. Commissioner Weiland responded that the Commission agreed on the process, the HR tools, the agendas, interviewing processes, techniques and strategies that were used. Commissioner Weiland stated all the Commissioners had confidence in the consulting firm to come up with a valid candidate. All of the Commissioners had one-on-one interviews with the candidates as well as group interviews. However, Commissioner Weiland said he did not think Wilfred Hawkins was the candidate for the job. After listening to the Mayor waiver about his vote, she realizes that a "house divided shall fall". Nothing done at the September 7th meeting was morally, legally or ethically valid. She recommended that this situation be handled correctly and urged the Commissioners not to "wimp" out. She is not supporting any candidate but feels the Commission should be fair and just. Ms. Mackey said that when she asked Commissioner Weiland whether or not he was qualified to make an HR decision on the hiring and firing processes and procedures, his response was "not really, but you could say I have. T do it for my company." You must be qualified to do this job. Many major corporations are being sued because they are not following proper HR policies, procedures and strategies set forth. Tf there is a process in place, it should stand. Ron Washam, 112 S. Atlantic Drive and Chairman of the Community Relations Board, said citizens of Boynton Beach marched ul~ Ocean Avenue even though a hurricane loomed in the distance because they feel strongly about this issue. The community tried for months to convince Commissioners Denahan and Weiland to come on board. He suggested that Mayor Broening and Mayor Pro Tem Sherman join Vice Mayor Tillman in their votes. He said the minority should not make this decision for the elected majority. There was nothing right about the vote on September 7th and the people will not condone it. Mr. Stunson will have 15 MEE'I"~NG M]:NUTES SPEC'rAL C?TY COMMTSSZON BOYNTON BEACH,, FLORtDA SEPTEMBER 13, 1999 a rough time if he is appointed. Mr. Washam said this is not political. Tt is just doing what is right. He implored the Commission to do what is right. Anne Centi, :13C Southport Lane, said the people do not want to go back to the turmoil of the 1960s. She urged Mayor Broening to stand up for what is right even if he stands alone. Attorney Cherof advised that following the September 7th meeting, he received a phone call from a citizen who asked if the Commission's action was legal and requested that the attorney go back to the beginning of the process for the purpose of investigating whether or not the process was legal. Attorney Cherof explained that the process evolved a number of times from the time it started to this point. A better term would be that the process mutated. At one time or another throughout the process, it is questionable whether or not all of the Commission complied with the agreed-to process during each step. However, at the last meeting, nothing occurred to judge whether it was legal or illegal. Attorney Cherof reminded the Commissioners that he told them it would take a Resolution to appoint a City Manager and it would have to be part of an agenda. That is what is on the agenda tonight. He takes issue with the suggestions that the actions taken by the Commission to date are illegal. He does not believe they are illegal. He pointed out that he was not suggesting that all of the Commissioners or the public would agree that the process, when scrutinized, is something they like or dislike. However, that is not a legal issue. The Commission is legally required to appoint a City Manager by Resolution. That process could be concluded at this meeting or be redefined. Melinda Collins, 504 NW 3r~ Street, said she had great faith in Mayor Broening and still has great faith in him. This may not be a legal issue, but it is a moral issue and morals count. She asked Mayor Broening to stand up morally and do the right thing. WITH NO ONE ELSE WISHING TO SPEAK, MAYOR BROENING CLOSED THE PUBLIC AUDIENCE. City Clerk Sue Kruse polled the vote. The vote was 3-2. (Mayor Broening and Vice Mayor Tillman dissented.) VT. AD3OURNMENT There being no further business to come before the Commission, the meeting properly adjourned at 8:45 p.m, 16 MEETI'NG MI'NUTES SPECI'AL CTTY COMM1'SSI'ON BOYNTON BEACH~ FLOR.I:DA SEPTEMBER 13~ 1999 CITY OF BOYNTON BEACH Vice'Mayor Ali-EST: Mayor Pro Tem 9/20/99 4:30 PM Comm s~sioner Commissioner 17