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Minutes 09-22-09 MINUTES OF THE SPECIAL CITY COMMISSION MEETING HELD IN THE COMMISSION CHAMBERS, CITY HALL, BOYNTON BEACH, FLORIDA, At 6:30 P.M., ON TUESDAY, SEPTEMBER 22,2009 Present: Jerry Taylor, Mayor Woodrow L. Hay, Vice Mayor Ron Weiland, Commissioner Jose Rodriguez, Commissioner Marlene Ross, Commissioner Kurt Bressner, City Manager James Cherof, City Attorney Janet Prainito, City Clerk Mayor Taylor called the meeting to order at 6:34 p.m. followed by an invocation given by Vice Mayor Hay and the Pledge of Allegiance to the Flag. 1. CONDUCTING THE 2nd BUDGET PUBLIC HEARING FOR DISCUSSION OF THE FISCAL YEAR 2009/10 MILLAGE AND BUDGET** 2. PROPOSED RESOLUTION NO. R09-138 RE: ADOPTING FINAL MILLAGE RATE FOR FISCAL YEAR 2009/10 THE Attorney Cherof read Proposed Resolution No. R09-138 by title only. Mayor Taylor opened the issue for public hearing. Dianna Brahs, Vice President of Government Affairs for the Realtors' Association of the Palm Beaches, spoke regarding the millage rate and thanked those Commissioners who had aggressively attempted to maintain or lower the current millage rate with deeper budget cuts. All realtors would remain dedicated to lowering the cost burden of homeownership on taxpayers. She urged the Commission to consider the residents barely able to survive and who would be greatly impacted by any increase. Her contention was any tax decrease should be awarded to the individual owner and not unfairly increased through a higher millage rate. Increases in millage would delay a full economic recovery. Nancy Hogan, 37 Hibiscus Way, Ocean Ridge and taxpayer within the Community Redevelopment Agency area, indicated she was a realtor and Certified Public Accountant in the State of Florida. She expressed her thanks for the efforts of the Commission and City staff to seek a solution to the budget crisis. All citizens need to work toward recovery including solid real estate, good investments and love of community. She urged the Commission to maintain the current millage rate. Allen Hendricks, 122 SE 4th Avenue, thanked the Commission for their service and efforts to reduce the millage rate. During tough economic times, there are opportunities and he suggested it may be the appropriate time to invest in the City of Boynton Beach. Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 No one else coming forward, Mayor Taylor closed the public hearing. Commissioner Rodriguez recalled his previous proposals to reduce costs and establish a lower millage rate. He returned to his proposal to further reduce memberships, publications and meetings, stressing that the monies budgeted were not for training. The training budget is $300,000. Commissioner Rodriguez requested reconsideration of reducing the memberships and meetings line item by $50,000. Mayor Taylor recalled the motion had failed 3-2 and Commissioner Rodriguez was not on the prevailing side of the vote. Discussion on the topic would not be permitted unless a motion for reconsideration was .approved. Attorney Cherof clarified the rules for the final budget hearing would include any and all budget discussions. The previous motion only related to the tentative budget and the matter before the Commission was the final budget. Commissioner Rodriguez repeated his suggestion to reduce the budget for meetings, memberships and publications by 25% and the City Manager had confirmed he could work with the reduced amount. Mayor Taylor noted the City Manager would have no choice. He did not see the iogic in reducing the budget item further since it had already been reduced by the City Manager across the board. Vice Mayor Hay agreed with Mayor Taylor and would not change his position of supporting the City Manager's reduction only. Commissioner Ross concurred. Motion Vice Mayor Hay moved to set the millage rate at 6.726. Commissioner Ross seconded the motion. The motion passed 4-1. (Commissioner Rodriguez dissenting) Motion Vice Mayor Hay moved to adopt Resolution R09-138. Commissioner Ross seconded the motion. The motion passed 4-1. (Commissioner Rodriguez dissenting) 3. PROPOSED RESOLUTION NO. R09-139 . RE: ADOPTING THE FINAL BUDGET FOR FISCAL YEAR 2009/10 Attorney Cherof read Proposed Resolution No. R09-139 by title only. Mayor Taylor opened the issue for publiC hearing. Michael Osborn, 3712 Coelebs Avenue, Blue Collar Union Steward, reiterated his concerns relating to car allowances and cell phones. He contended employees were given car allowances and then used City vehicles to go to meetings and conduct other business. Mr. Bressner agreed 2 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 it was improper conduct and discipline would be administered for the abuse of the car allowance program. Mr. Osborn indicated many blue and white collar employees receive work related calls on their personal cell phones throughout the work day and were not given a cell phone allowance, There were better plans available for the City to save considerable money. The phones cost $40 a month and some cell phone allowances were $100 a month. Mr. Osborn also brought up the fact that a contractor, AUI, was being paid considerable monies to do the same job that City employees had done. He also indicated the Utilities Department has six engineers and pays contract engineers to do most all of the work. He suggested the individuals being given the extra deferred compensation should being doing the jobs the contractors are being paid to do for them. Clyde Montross, 109 SW 18th Street, was confused about the decision on the new police facility. Money was spent to do a study that revealed a new facility was needed and it has now been rejected. The future increase in population warrants preparation for the increase in police protection that would be required. Mayor Taylor explained monies were not available unless taxes were increased. There was approval to place the issue on the March election ballot. Mr. Montross did not agree with taking the police facility out of the budget. It was not a political issue, rather a safety issue. John McGovern, 2620 Spiceberry Lane, was offended by the assertion that the deferred compensation previously referred to was compensation and he asserted the monies were a bonus. He agreed with Mr. Montross on the issue of politicalization (sic) of an important issue. He recalled a referendum relating to the Library expansion and renovation that was voted down and the Commission quickly voted to continue with the construction of a new Library. He hoped the vote of the people would be upheld by the Commission. Sergio Casaine, 13 Meadows Park Lane, contended the budget should not be approved until the issues referred to by Mr. Osborn were resolved and the deferred compensation issue revisited. More work needed to be done to further reduce the budget and further investigate the management compensation package. No one else coming forward, Mayor Taylor closed the public hearing. Commissioner Weiland commented more work could be done and the budget further reduced to the current millage rate. However, there has been a compromise from 7.3 mills to 6.7 mills and more work can be done in the interim for next year's budget. Commissioner Rodriguez agreed with Commissioner Weiland and noted ultimately the citizens suffer if the millage rate is not reduced. County taxes were increasing and would adversely affect many residents. He would not support the increase in the millage rate. Motion Commissioner Ross moved to approve Resolution R09-139. Vice Mayor Hay seconded the motion. The motion passed 4-1. (Commissioner Rodriguez dissenting) 3 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 4. DISCUSSION AND ACTION ON RATIFICATION OF MEMORANDUM(S) OF UNDERSTANDING WITH UNION(S) TO MODIFY FISCAL YEAR 2009-10 COMPENSATION Attorney Cherof explained there were ongoing collective bargaining agreements with the three unions of the Police Department and the firefighters through the IAFF. The same understanding had been negotiated with all four bargaining units. There would be a wage compensation freeze until September 29, 2010 conceding to the request of the City Manager. There were four Memorandums of Understanding requiring ratification by the Commission. Commissioner Weiland thanked the unions and staff for coming to an equitable agreement. It would be a temporary solution until the economy improved. Commissioner Rodriguez expressed his appreciation to the union for being willing to negotiate the matter. He agreed it would be on a short term basis. Motion Commissioner Weiland moved to approve. Vice Mayor Hay seconded the motion. The motion passed unanimously. ** Commissioner Marlene Ross intends to move for reconsideration of the elimination of deferred compensation for contract staff members to allow for further discussion, evaluation and action on that budget matter. Commissioner Ross contended the previous decision was hastily made and premature. It was a very unfair decision that would affect 24 middle management and upper management employees. All employees were all accepting no wage increases and changing their the compensation package of a few would be unfair. Mayor Taylor agreed the deferred compensation benefit should not be taken away as it would constitute a 6% salary decrease for those individuals currently receiving the benefit. The deferred compensation is a recruitment tool and the IRS considers the contribution as salary. Commissioner Ross added the amounts varied from $2,000 to $12,000 decreases for those individuals helping to lead the City. Commissioner Rodriguez agreed with the previous remarks, but alleged the economic climate was conducive to upholding a bonus package when others were struggling to survive. It is a bonus that has no impact on their take-home pay. Good leadership starts at the top and these management level positions should set the example of good stewardship. Commissioner Ross strongly disagreed and understood it was not a bonus. Insinuating that the individuals were less than good leaders was offensive and incorrect. Mayor Taylor noted the City Manager would lose $14,000. Discussion on the priorities of leadership within the City ensued. 4 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 Commissioner Rodriguez questioned the City Manager on when the monies would be received by the individuals. Mr. Bressner handed out an opinion of the IRS defining deferred compensation plans and deferred salary versus a salary reduction. The funds are placed in a 457 account that was authorized in the 1990s for qualified City employees. The monies would be distributed upon retirement at age 65. Mayor Taylor recalled the City Manager was not given an increase in compensation at the last evaluation. Vice Mayor Hay would not change his position on the issue. It was not a bonus, but part of the compensation package. He agreed with the program. Motion Commissioner Ross moved to reinstate the deferred compensation for contract staff. Vice Mayor Hay seconded the motion. Commissioner Weiland inquired about the source of funding for the deferred compensation if the millage rate had been set. Mayor Taylor advised the monies would be budgeted from the contingency funds. The motion passed 3-2. (Commissioners Weiland and Rodriguez dissenting) ** Vice Mayor Woodrow Hay intends to move for reconsideration of the authorization to use $1,500 for the Boynton Isles Neighborhood Association from Commissioner Rodriguez's Community Investment Funds. Vice Mayor Hay voiced his concern regarding tarnishing the good name of the Commission in light of the recent Grand Jury report and recommendation regarding ethics and Honest Services fraud. Since the donation of monies would reduce the cost to Commissioner Rodriguez personally, a possible conflict had been created. He cautioned that public perception and trust was paramount. He suggested Commissioner Rodriguez redirect the funds and advised he could not support the donation. Commissioner Rodriguez reviewed the use of discretionary funds and his request to 'use his funds to assist Boynton Isles Neighborhood Association with signage in his community. The sign is on Federal Highway, on a City right-of-way and not private property. Although the area is included in the Community Redevelopment Agency area, there are no programs for signage. Commissioner Rodriguez had also donated funds to other communities for issues relating to hurricane damage. He considered all of the contributions to be beautification issues along a major corridor in the City of Boynton Beach. His conscious was clear and he contended he had an obligation to advocate for those communities within his district. The $20 million spent in the Heart of Boynton Beach where Vice Mayor Hay lives, was never questioned as a conflict. The will of the Commission prevails. Commissioner Ross questioned the average price of homes in the Boynton Isles Neighborhood and the average price of homes in the Heart of Boynton to assess the need. Commissioner 5 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 Rodriguez countered that the Commission had a responsibility to address the needs of the entire City. Vice Mayor Hay noted the Community Redevelopment Agency operated under State statute and could not be compared to $1,500 in discretionary funds. Commissioner Rodriguez offered to reimburse the City for his share of the $1,500 donated. Commissioner Ross was not sure a precedent should be set for reimbursement of funds. Commissioner Weiland pointed out some homeowner associations are allowed to use City facilities for meetings at no cost, while the same opportunity is not afforded to all communities within the City of Boynton Beach. All aspects of assistance to homeowner associations should be reviewed. Mayor Taylor agreed with Vice Mayor Hay that the funding sources were not comparable. The rules relating to the discretionary funds were very specific. He disagreed with the advice given by Attorney Cherof that the Commission could change the rules. Attorney Cherof clarified his remarks related to changes that could be made if the Commission determined a public need would be satisfied by the expenditure of the funds. The rules can only be changed by a separate agenda item and the rules had previously been reviewed by the Commission. There was a motion to approve the expenditure which infers there was a finding of a public necessity or need. Attorney Cherof advised the matter before the Commission was a motion to reconsider and there had been no motion or second, making all the discussion inappropriate. Motion Vice Mayor Hay moved to reconsider the $1,500 that was spent for the Boynton Isles Neighborhood community and spent otherwise. Commissioner Ross seconded the motion. The motion passed 4-1. (Commissioner Weiland dissenting) Mayor Taylor offered his opinion that a conflict of interest was created and Commissioner Rodriguez should be excused from voting on the issue. Funds given to Sterling Village and Colonial Club related only to the residents of those developments, violating the rule that the monies should not be given to private property. Mayor Taylor sought advise from the City Attorney whether Commissioner Rodriguez should be excused from voting on the motion. Attorney Cherof cited Chapter 112.3143 of Florida Statutes that requires each Commissioner to vote on any matter that comes before the Commission with an exception. The exception related to motions that inures to a Commissioner's special, private gain. The Florida Commission on Ethics had determined that expenditure of funds for neighborhoods or r~zoning issues, the fact that a Commissioner lives within the area, would not constitute a special, private gain. The gain is to the community as a whole and not the individual. All of the Commission has previously voted on issues that deal with rezoning or expenditure of public funds or public improvement projects in their own neighborhoods. It was his opinion, the request was not a special, private gain. Commissioner Rodriguez added it was not a private community because it was not gated and the public had access all the time. 6 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 Motion Commissioner Rodriguez moved to approve the expenditure for the Boynton Isles Neighborhood sign. Commissioner Weiland seconded the motion. Commissioner Ross inquired of the City Attorney, if Honest Services Fraud was a concern for the Commission. Attorney Cherof stressed every issue that arises is a concern under the law. He cautioned all the Commission to be as conservative as possible when making decisions about the projects to support. Lee Wische, 1302 SW 18th Street, expressed his concern with the moral ramifications of the three requests for donations to three communities within Commissioner Rodriguez's district. In his opinion, the donations could be perceived as buying votes in the upcoming election. It would seem peculiar to the ordinary citizen. To provide solidarity, Mr. Wische suggested all discretionary funds should be eliminated and the approval of funding for all three communities should be rescinded. Commissioner Rodriguez indicated he had made a motion to eliminate the funds. Mayor Taylor advised the funds had been eliminated. The motion failed 2-3. (Mayor Tay/or, Vice Mayor Hay and Commissioner Ross dissenting) There being no further business to come before the Commission, Mayor Taylor properly adjourned the meeting at 7:38 p.m. (Continued on next page.) 7 Meeting Minutes Special Budget Commission Meeting Boynton Beach, FL September 22, 2009 ATTEST: CITY OF BOYNTON BEACH J~~~ <-- , Ronald Weiland, Commissioner , , / . /7 <'<~ -</"..., . Woodrow L. Hay, Commissioner ~~~ Marlene Ross, Commissioner 8 I ,