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02-16-1999 Regular Meeting• MIAMI SHORES VILLAGE REGULAR COUNCIL MEETING The regularly scheduled meeting of the Village Council was held on Tuesday, February 16, 1999 at the Village Hall commencing at 7:55 PM with the following members present: PRESENT: Mayor Agosta Louis Imburgia Stephen Loffredo Cesar Sastre Herb Spahn, Jr. ALSO PRESENT: Tom Benton, Village Manager Barbara Fuga 'zi, Village Clerk Richard Sarafan, Village Attorney PRESENTATION Mayor Agosta presented a Proclamation to Miami -Dade County Mayor, Alex Penelas in honor of The Year of The Child. Additional presentations by local children were made to Mayor Penelas • honoring The Year of the Child. CONSIDERATIONS 1. CONSENT AGENDA A. APPROVAL OF THE FEBRUARY 2, 1999 REGULAR COUNCIL MEETING MINUTES. APPROVAL OF APPROPRIATION OF FORFEITURE FUNDS IN THE AMOUNT OF $2,000 FOR THE CRIME STOPPERS OF MIAMI-DADE COUNTY. C. RATIFICATION OF THE POLICE BENEVOLENT ASSOCIATION CONTRACT. Councilman Spahn requested that Item 1A be pulled from the Consent Agenda for amendment purposes. Mr. Sastre moved approval of the remainder of the Consent Agenda (1B & 1C). Mr. Spahn seconded the motion and the vote was unanimous in favor. • • Mr. Spahn indicated that on the Council Comment portion of the February 2, 1999 Minutes, page 6, he would like to amend them to read: • ... form a special taxing district to contract with Miami Shores Village to hire two on - duty police officers, perhaps with a police car, and to combine their coverage with the coverage currently in the Shores, based on the statistics that the police keep on patterns. I feel that for less money, they will get better coverage. Just a thought. Additionally, Mr. Spahn indicated that the last word of his comments should be divisive, not decisive. Mr. Loffredo moved to adopted the Minutes as amended by Mr. Spahn. Mr. Sastre seconded the motion and the vote was unanimous in favor. 2. VILLAGE MANAGER Tom Benton A. PRESENTATION OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 1998. Mr. Benton introduced Mr. Jerry Chiocca from the auditing firm of Rachlin, Cohen & Holtz. Mr. Chiocca outlined the information contained within the Comprehensive Annual Financial Report (CAFRA), calling special attention to a new government requirement regarding the Y2K problem. The Governmental Accounting Standards Board has directed all auditors to issue a "qualified opinion" on all municipal and governmental pension plans and financial statements addressing the year 2000 readiness. Mr. Chiocca stated that the Firm has been unable to cost effectively, verify that the Village is Y2K compliant, due to the fact that the Village cannot verify whether or not all of the Village's vendors, subcontractors, etc. are Y2K are compliant. For this reason, the Firm has issued a "qualified opinion" which states that the financial statements are fairly presented, except for the possible adjustments, if any, with the Y2K problem. Mr. Chiocca further stated that the same "qualified opinion" is being offered in regards to all municipalities. Mr. Chiocca went on to provide the highlights of the report, including a new ruling which called for the monies in the ICMA 457 Accounts to be placed in a separate Trust Account which the Village cannot administer. Additionally, he stated that there was an increase in the Fund Balance of approximately $1.2 million, about $850,000 of which is undesignated/unreserved. Mr. Spahn asked why the Police Department fund totals increased from $143,214 to $391,385. Mr. Chiocca clarified that these increased funds represent confiscated assets that are being held and are restricted from use by Village. Mr. Spahn also asked about the Waste Department fund. Mr. Chiocca stated that those funds are reserved for Capital Projects. Mr. Loffredo verified that those funds were set aside as surplus last year, as well as funds for Waste Department vehicles, which will ultimately deplete the fund. . Page 2 Mr. Chiocca indicated that the Village has a balanced budget, as required by the Village's Charter, and that the Village had a positive revenue flow. Mr. Chiocca reported on the other funds, including the Stormwater and Pension Funds. In regards to the Compliance Section of the Report, Mr. Chiocca indicated that once again, there are no material weaknesses which need to be disclosed, no irregularities, shortfalls or defalcations, and the Village was not in a state of emergency, nor did the Village have any deficit balances. Mr. Spahn asked for clarification regarding the Waste Department which he understood to be an Enterprise Fund. Mr. Chiocca stated that at the Village, it is handled in the General Fund. Mr. Benton stated that to his knowledge, the Waste Department is handled in the General Fund but treated as an Enterprise Fund. Mr. Chiocca verified that the Waste Department is accounted for in the General Fund, as is the case in some municipalities. Other municipalities account for the Waste Department as an Enterprise Fund. Mr. Spahn asked about the high amount of unfunded monies in the Pension Trust Fund. Mr. Chiocca stated that those figures are prepared by the actuary and represents a calculation at a certain point in time. Mr. Chiocca further explained that if on October 1, 1998, everyone retired and the pension shut down, the Village would need to come up with $579,699. The actuarial report, prepared by an outside firm (not Rachlin, Cohen & Holtz) contains numerous variables and the figure fluctuates from year to year. Mr. Spahn asked if the figure was a realistic liability. • Mr. Chiocca responded that it is a liability at a point in time, which the Village would not have to pay unless the pension fund were to shut down at that certain time. • Mr. Loffredo expressed his concern regarding the upwards trend of the liability figure of the Pension Trust Fund and questioned whether there was a way to predict the future trend. Mr. Chiocca stated that an actuary would need to respond to the question, as he is not qualified to answer. Mr. Loffredo asked that the Village Manager look into this issue with the actuary. Mr. Chiocca thanked Mr. Benton and Mrs. Fugazzi for their help in preparing the report. B. DISCUSSION AND POSSIBLE ACTION REGARDING THE ALLOCATION OF $225,624 FROM THE FUND BALANCE TO PAY FOR THE PURCHASE OF NEW VEHICLES UNTIL SUCH TIME AS LOAN FINANCING CAN BE FACILITATED. Mr. Benton provided background information, stating that the good news is that the vehicles have been delivered but the bad news is that the financing package to pay for the vehicles has not been completed. Mr. Benton stated that he is proposing that monies from the Fund Balance be allocated to pay for the vehicles until the financing has been completed. Page 3 • Mr. Spahn expressed his concerns with doing business in this manner and suggested that the police department budget each year for the purchase of the vehicles. Mr. Spahn stated that by financing the costs, the Village needs to pay the interest on the loan, as well as losing interest on the money at the same time, wasting $10,000 to $15,000. He further stated that it is difficult to get off this type of financing program once it has begun. He asked that the Village Manager try, maybe over a four year period of time, setting monies into the capital improvement fund with the intention of getting off of the loan program. Mr. Loffredo verified with the Village Manager and Mr. Chiocca that the unencumbered portion of the Fund Balance is approximately $850,000 as of September 30, 1998, and that it is Administration's intention to "borrow" the funds for a short period of time (approximately 30 days). Mr. Sastre moved to allocated $225,624 from the Fund Balance to pay for the purchase of the new vehicles until such time as loan financing can be facilitated. Mr. Spahn seconded the motion and the vote was unanimous in favor. 3. VILLAGE CLERK Barbara Fugazzi A. A JOINT RESOLUTION BETWEEN THE CITY OF NORTH MIAMI AND MIAMI SHORES VILLAGE, FLORIDA, SUPPORTING THE SUBMITTAL OF A JOINT APPLICATION TO MIAMI-DADE COUNTY TO ANNEX THE COMMERCIAL AND RESIDENTIAL AREA NORTH OF NORTHEAST 105' STREET AND WEST OF BISCAYNE BOULEVARD. The Village Clerk introduced the item and Mr. Benton offered background information which was contained in his memorandum within the Council Packet. Mr. Loffredo moved approval of the Joint Resolution. Mr. Spahn seconded the motion and the vote was unanimous in favor. 4. ANNOUNCEMENTS The Clerk read the announcement. 5. PUBLIC COMMENTS Alice Burch Ms. Burch spoke about the TCI Contract and stated that he is pleased with the commitment for an optic cable linking Bayfront Park to the police station. Robin Pyke Ms. Pyke spoke about the upcoming 5K Run/Walk sponsored by the Mayor's Task Force 011 Saturday, February 20, 1999. • Page 4 S 6. COUNCIL COMMENTS Steve Loffredo No Comment Cesar Sastre No Comment Louis Imburgia No Comment Herb Spahn Mr. Spahn spoke about the current musical production at the Shores Performing Arts Theater. Mayor Agosta Thanked everyone for their patience and spoke about the 5K Run/Walk. 7. ADJOURNMENT The February 16, 1999 Council Meeting was adjourned at 8:45 PM. • Barbara A. Fugazzi, CMC Village Clerk • Page 5 Mary Ross Agosta, Mayor