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09-17-85SpMtg SEPTEMBER 17, 1985 A Special Meeting of the City Council of the City of Delray Beach, Florida, was called to order by Mayor Doak S. Campbell in the Council Chambers at City Hall at 7:05 P.M., Tuesday, September 17, 1985. Roll call shQwed: Present - Council Member Malcolm T. Bird Council Member Marie Horenburger Council Member Arthur Jackel Council Member Jimmy Weatherspoon Mayor Doak S. Campbell Absent - None Also present were - City MaD~ger James L. Pennington, and City Attorney Herbert W.A. Thiele. Mayor Campbell called the meeting to order and announced that this meeting has been called for the purpose of: (1) Considering postponement of Second and FINAL Reading and Public Hearings for certain ordinances now scheduled for September 24th agenda; (2) considering rejection of some or all of the bids received for the City's insurance program and authorizing the administration to set up and fund a self- insurance program and negotiate to fill any gaps; and (3) considering approval of Amendment #2 to Delray Beach Renourishment Project Agree- me nt. Mayor Campbell stated that before they discuss the agenda items he would like to recognize 5~r. Victor Seidman from the Hamlet Country Club who would like to present some checks. Mr. Victor Seidman, on behalf of the members of the Hamlet Country Club, stated he would like to make a joint presentation to the Firefighter s, Paramedics and Police Department. He presented each department with a check in appreciation and gratitude for all the services they have been getting at the Hamlet. He also presented a check to the Beautification Committee and stated they are hopeful they can cooperate with the Committee as the beautification of Delray Beach is as much to their benefit as the residents of any particular area. 1. The City Attorney stated this item was placed on the agenda at the request of a Council Member. The question was raised as to whether or not Council could, if they so desired, postpone from Second and FINAL Reading the ordinances dealing with rezonings and land use changes due to a conflict with the Jewish holiday. It is his position that Council could modify the agenda if they wish; however, they would have to postpone the items to September 25, 26 or 27. At the meeting on September 24th Council would have to specifically move to postpone each of those ordinances as they get to them. This is being brought up tonight so that Council can express publicly, in advance, their intentions of doing so and thereby informing the interested citizens that they would not have to attend an additional meeting. Mr. Jackel stated they have to conduct a meeting on Septem- ber 24th for the budget and charter revision hearings and he can see no reason to have an additional meeting for the rezoning and land use ordi na nce s. Mrs. Horenburger stated if there are no objections from the citizens to hearing the ordinances on the 24th she would be willing to keep it that way. Mr. Morton Gilday stated he can see no reason why these ordinances could not be postponed until September 26th as nothing is going to happen to the detriment of the City by doing so. The City Attorney advised that whatever Council decides to do tonight they will still have to vote on each of the ordinances next week. The motion to be made tonight would be a motion to declare Coun- cil's intent that they shall be postponing the ordinances dealing with land use plan changes from the 24th to the 26th of September. Mrs. Horenburger moved as advised by the City Attorney. Said motion FAILED for lack of a second. Mr. Jackel stated it was his understanding at the September 10th meeting that the difficulty people were having was with the budget hearing schedule and not the zoning changes. Mr. Weatherspoon concurred with Mr. Jackel. 2. Mr. David HUddleston, Finance Director, stated they sent out 17 proposals for the insurance package for the City. They received four bids in by the due date and since then they have been notified that one additional agency provided a bid. In reviewing that proposal it was noted that they offered some coverage which was not bid by the other four vendors. They will be asking Council's consideration to waive that irregularity and allow the last bid to be considered. Mr. Bird moved to waive the technical requirements and consider the bid as part of the package, seconded by Mrs. HOrenburger. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. HOrenburger - Yes; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Mr. Edward Siver, E.W. Siver & Associates, Inc., advised that the property and casualty insurance market is in a state of chaos. They are suggesting, as consultants to their government clients, that they give consideration to recognizing the urgency of this situation and perhaps, temporarily, suspend the need for the use of public procurement procedures for insurance. Instead, they should allow the management and administration of the City to effectively try to make some insurance placements that will tend to fill out the program on a negotiated basis. In their opinion, this will be more successful than the attempt to go at it from a public bidding point of view. Mr. Siver outlined the cost comparison of the premiums for the current plan against those of the recommended plan, outlined the major differences and the reasons for their recommendations. He stated that the net result of this is that by acceptance of the late proposal the total expected cost under the expiring program is estimated to be $613,284; the total expected cost under the recommended program is $643,577. This is without the setting up of the self-insurance funds. Mr. Siver suggested that the City take $500,000, or the premium they thought it was worth, and sequester it as a starting point. Re also suggested that the City commission an actuarial study which would give official credance as to the amount of money that should be put up in a separate account to pay the liability claims; that estimate will be based on the City's loss experience, claims experience plus whatever actuarial input would be placed in it. After the initial report is done it should be done annually as long as that program stays in effect. Upon question by Mayor Campbell, ~]r. Huddleston advised the City presently has $500,000 in a reserve account for insurance; of that $500,000 they would need to fund $500,000. They have reserves set up for the previous program, however, the proposed program changes that and they are looking to set up a new reserve for the general liability. The old reserve will continue to cover those existing and incurred, but not reported, claims under the previous four years. The City Attorney advised they do have $500,000 in the fund; however, they are going to earmark it to cover the expenses and poten- tial liability for the claims which they get through the end of this month. Starting October 1st there would be a new fund of $500,000, initially, and claims that they get for things that occur post October 1st would commence to come out of that fund. - 2 - 9/17/85 Mr. Bird moved to accept the recommendations of E.W. Siver and Associates, Inc., for the insurance program for the upcoming year and direct the Administration to place the recommended policies, seconded by Mr. Jackel. The City Attorney advised that the motion should include authorization to negotiate with brokers for the future as was recom- mended. Mr. Bird amended his motion as advised by the City Attorney, hr. Jackel amended his second. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. Horenburger - Yes; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. 5~r. HUddleston stated that as the City is looking to go self-insured on the liability they should bring in-house one person to monitor and administer those claims so that they make sure the coordina- tion is there when suits are filed. This had previously been done through the service agency. They would also like to start to develop that person and do some studies so that they can look to bring in Workers Compensation in the following year. Upon question by Mr. Bird, the City Attorney stated this would essentially be creating a Risk ~nager's position. Council would also have to convert over to the City Attorney's Office Budget #2 in order to accomplish this task. Mr. Bird moved to authorize the additional position with funding initially to come from Contingency Funds, the position to be in the Finance Director's office and to be reflected as a personnel posi- tion in the budget and the funding allocation to be transferred with the adoption of the budget, seconded by Mrs. Horenburger. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. HOrenburger - Yes; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Mr. Bird moved to formally authorize transference of $500,000 from the Reserve Fund to Insurance Reserve, seconded by Mrs. Horenburger. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. Horenburger - Yes; hr. Jackel - Yes; Mr. Weatherspoon- Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Before roll call the following discussion was had: Upon question by ~yor Campbell, Mr. Siver stated he arrived at the $500,000 figure by taking the number which was quoted to provide the coverage and felt this was a relatively safe number based on histor- ical experience. Mayor Campbell stated if the figures should come out lower in the actuarial report they could transfer the money back. Mr. Bird questioned whether they have a company to do the actuarial study or will they have a Request for Proposals and come back to Council. Mr. Huddleston stated they would prefer to go ahead and direct the consultants to contact some of the firms available; however, allow staff to negotiate for the actuaries to prepare the study. Mayor Campbell suggested they have the consultants handle this rather than the City. Upon question by Mayor Campbell, the City Manager stated they would be in a much safer position if they transfer the Funds at this time. At this point the roll was called to the motion. - 3 - 9/17/85 3. Mr. Bi rd moved to approve Amendment #2 to Delray Beach Renourishment Project Agreement, seconded by Mr. Jackel. Upon roll call Council voted as follows: Mr. Bird - Yes; Mrs. H'orenburger - Yes; Mr. Jackel - Yes; Mr. Weatherspoon - Yes; Mayor Campbell - Yes. Said motion passed with a 5 to 0 vote. Mayor Campbell declared the meeting adjourned at 7:50 P.M. City ClErk ATTEST: ~/ ~] A Y 0 R The undersigned is the City Clerk of the City of Delray Beach and that the information provided herein is the minutes of the meeting of said City Council of September 17, 1985, which minutes were formally approved and adopted by the City Council on ~. ~ /~ . NOTE TO READER: If the minutes that you have received are not completed as indicated above, then this means that these are not the official minutes of City Council. They will become the official minutes only after they have been reviewed and approved which may involve some amendments, additions, or deletions to the minutes as set forth above. - 4 - 9/17/85