08-12-2015 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 12, 2015
Present: Robert A. Gebbia, Mayor
David B. Norris, Vice Mayor
Doug Bush, President Pro Tem
Darryl C. Aubrey, Sc.D., Councilmember
Mark Mullinix, Councilmember
Jim Kelly, Village Manager
Melissa Teal, Village Clerk
ROLL CALL
Mayor Gebbia called the meeting to order at 7:00 p.m. All members of Council were present. All
members of staff were present, except the Village Attorney. Finance Director Samia Janjua,
Human Resources Director Britoni Garson, and Information Technology Director Michael Applegate
were present.
CEO Kurt Gehring, Senior Benefits Consultant Shawn Fleming, and Risk Management Director Ellen
Jones were present on behalf of The Gehring Group, the Agent of Record for the Village's health,
dental, life, vision, disability, accident, and workers compensation insurance policies.
The purpose of the meeting was to review the Village's insurance coverage and the proposed
FY 2016 Village Council, Village Clerk, Village Attorney, Village Manager, Human Resources,
Finance, Information Technology, Reserves & Other, and General Services — Village Hall
departmental budgets.
HEALTHCARE BENEFITS
The Gehring Group solicited competitive quotations for health insurance coverage. Two renewal
options were presented. Village staff recommended continuing coverage with Cigna under Option
#2. Option #1 would have included a 3.9% increase, whereas Option #2 offered no increase with
--slightly different terms and minimal impacts. Mrs. Janjua stated that there was a slight increase to
optional employee coverage for vision and dental plans.
Mr. Fleming explained that overall, Village plan benefits were in line with other municipalities.
Additional discussion included plan copays, deductibles, coinsurance, maximum out of pocket
expenses, specialty drugs, retirees still on the plan, and employee contributions. It was confirmed
that the Village does not contribute to coverage for retirees.
Discussion ensued regarding cost-sharing and employee contributions. The current Collective
Bargaining Agreement provides for an 80/20 split, with the employees contributing 20%. A
recommendation was made to revisit this during the next bargaining negotiations.
Consensus of Council was to renew coverage with Cigna as proposed in Option Q.
Minutes of Village Council Budget Workshop Session held August 129 2015 Page 2 of 4
As discussed during the previous fiscal year, the Village went out to bid to try to combine policies for
workers compensation, and property and casualty coverage. Two responses were received in response
to the RFQ. PRN proposed a 10.5% decrease for property and casualty and the Florida League of
Cities proposed a 8.9% decrease for workers compensation coverage. Village staff recommended to
continue with PRN for property and casualty and the Florida League for workers compensation
coverage.
Consensus of the Council was to continue with PRN for property and casualty and the Florida
League of Cities for workers compensation, as proposed.
HUMAN RESOURCES
• Personnel: $243,645
• Operating: $104,337
• Total expenses: $347,982; 1.92% or $6,539 increase over FY 2015
• Personnel: 2 full-time employees, 2 (+1) part-time employees
Discussion ensued regarding costs associated with the new evaluation software and the possibility
of managing the software in-house. It was confirmed that this is a hosted software, and therefore
cannot be managed in-house at this time.
VILLAGE COUNCIL
• Personnel: $50,472
• Operating: $82,245
• Total expenses: $132,717; 2.02% or $2,634 increase from FY 2015
Discussion ensued regarding donations and special events. It was determined that there was a
request to increase the amount for the boat parade and that the Village would be hosting a luncheon
for the Palm Beach County League of Cities in the coming year.
VILLAGE CLERK
• Personnel: $303,233
• Operating: $34,905
• Total expenses: $338,138; 4.99% or $16,086 increase over FY 2015
• No personnel changes
• 3 full-time employees
Village Clerlc Teal explained that the official election estimate was still pending --from the
Supervisor of Elections. Discussion ensued about costs related to a tag -along election. It was
recommended to further discuss the topic with the Florida League of Cities.
VILLAGE ATTORNEY
• Total Operating: $140,000; No change from FY 2015
• Legal Services — Village Attorney: $105,000
• Legal Services — Special: $10,000
• Legal Services — Labor: $25,000
Discussion ensued regarding pending litigation with the Inspector General. Mrs. Janjua stated that
an estimate of an amount owed is still pending from the Inspector General. Mrs. Janjua added that
no payments are being accepted at this time and no invoices have been submitted for payment.
Minutes of Village Council Budget Workshop Session held August 12, 2015 Page 3 of 4
VILLAGE MANAGER
• Personnel: $300,627
• Operating: $30,900
• Total expenses: $331,527; 4.57% or $14,494 increase from FY 2015
• No personnel changes
• 2 full-time employees
FINANCE
• Personnel: $732,498
• Operating: $48,550
• Total expenses: $781,048; 6.75% or $49,400 increase over FY 2015
• No Personnel changes
• 7 full-time employees; Finance Director also oversees 1 full-time Country Club
Accounting Clerk
Discussion took place concerning the significant changes between 2012 and 2016. It was determined
that two positions were converted from part time to full time status. Two Accounting Clerks were
promoted to Accountants, which will reduce overtime costs. Additionally, two employees retired
resulting in large payouts. Council requested a more formal breakdown of the department changes.
Purchasing procedures were discussed and whether local vendors are given preference. The Village
advertises bids via DemandStar and new bids are available for public view on the Village website. The
website also allows the ability to register to receive notifications for new bid postings.
INFORMATION TECHNOLOGY
• Personnel: $314,589
• Operating: $108,300
• Total expenses: $422,889; 1.84% or $7,911 decrease from FY 2015
• No personnel changes
• 3 full-time employees
Discussion ensued regarding IT projects for the current fiscal year, including redesign of the
Village website, upgrade to Laserfiche electronic document management system, server
virtualization, and the seamless transition for the Police Department radios, including CAD and
GPS.
There was discussion regarding email addresses and the possibility of migrating to another domain.
GENERAL SERVICES -VILLAGE HALL
• Operating: $130,712; 10.58% or $12,506 increase over FY 2015
• Capital expense: zero
Additional discussion followed, including:
• Utilities
o Decrease in revenue costs anticipated due to new air conditioning unit and upgraded
LED lighting
• Newsletter
o Increase in revenue due to offering 1/4 and 1/2 page ads
• Extermination Services
Minutes of Village Council Budget Workshop Session held August 12, 2015 Page 4 of 4
o New line item created
• General Liability
o Reduced by $85,000 due to new rates
• Transfers
o To cover Infrastructure Saving Account
• Charge Card Fees
o Recovering costs by collecting 2.25% for annual memberships and Business Tax
Receipts
Mr. Kelly discussed an increase of $94,000 or a 4.48% increase for the Operating budget, and a
proposed Millage Rate of 7.1977%, which includes a contribution to infrastructure costs.
CONSENSUS ITEMS
• Renew medical insurance coverage with Cigna, Option #2.
• FY 2016 Village Council, Village Clerk, Village Attorney, Village Manager, Human
Resources, Finance, Information Technology, Reserves & Other, and General Services —
Village Hall Department budgets, as proposed
The next meeting will be held on Wednesday, August 26, 2015.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:31 p.m.
C m leted by Jessica Green, MMC, Village Clerk