TOWN OF MELBOURNE BEACH
MINUTES
TOWN COMMISSION - Special Meeting
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Wednesday
November 12, 2003
COMMUNITY CENTER
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A special meeting of the Town Commission of the Town of Melbourne Beach, Florida was called to order by
Mayor Crispen at 6:00 p.m. on Wednesday, November 12, 2003 in the Community Center. Mayor Crispen also
led the Pledge of Allegiance
Present:
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Mayor Crispen
Commissioner Elect Guglietta
Commissioner Price
Commissioner Walters
Commissioner Wilson
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Others Present:
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Town Attorney Gougelman
Town Manager Hoskovec
Finance Manager Matthews
22 members of the public
Town Clerk Masny
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I. TOWN ATTORNEY GOUGELMAN TO ADMINISTER OATH OF OFFICE TO COMMISSIONER PAUL S.
GUGLIETTA AND COMMISSIONER STEVE WALTERS
Town Attorney Gougelman stated this will be an interim ceremony and the official ceremony will be held at the
regular meeting on November 19, 2003.
Town Attorney Gougelman administered the Oath of Office to Commissioner Paul S. Guglietta and Commissioner
Steve Walters.
II. DISCUSSION AND POSSIBLE ACTION REGARDING THE FISCAL YEAR 2003/2004 MUNICIPAL
BUDGET. (COMMISSIONER WILSON)
Commissioner Wilson stated that in this week, the Town was notified by the Florida Department of Revenue that
the Town’s budget was improperly submitted and the Town will have to re-advertise the budget and resubmit the
budget certification papers for the budget. Commissioner Wilson stated that with a new Commissioner, there
may be questions about the budget and he has called the meeting as the Town is not sure what its financial
situation is right now and he would like to place a freeze on hiring of any Town employee.
COMMISSIONER WILSON MOVED, SECOND COMMISSIONER GUGLIETTA TO DIRECT THE TOWN MANAGER
TO FREEZE ALL HIRING, FOR ANY POSITION UNTIL AUTHORIZED BY THE TOWN COMMISSION.
VOTE AFTER DISCUSSION,
COMMISSIONER WILSON, AYE. COMMISSIONER PRICE, AYE. COMMISSIONER
GUGLIETTA, AYE. COMMISSIONER WALTERS, AYE. MAYOR CRISPEN. NAY. MOTION CARRIED.
Commissioner Wilson stated that regarding the Police Chief hiring and there has been a selection made and
before that person is hired, the budget situation needs to be worked out as to what type of salary can be offered
and he would feel more comfortable waiting until the Town knows where we stand regarding the budget.
Commissioner Walters stated that until the Town Commission authorizes the Town Manager to do so, he is not
to hire another Town employee.
Commissioner Guglietta stated that as he understands the motion and the reason for the motion, but, as a citizen
he did have some objections to some of the line-items in the budget. Commissioner Guglietta stated that he
sees other problems in the budget that he would like to have an opportunity to add input on. Commissioner
Guglietta stated that he would like to know why there was a problem with the budget certification? How long
with the freeze will be on hiring?
Commissioner Wilson stated that the entire Town Commission has been waiting for a Police Chief to be hired
and as soon as the budget is worked out, the Town Commission can give authorization to remove the hiring freeze.
Commissioner Price asked if there has been an offer made to hire a Police Chief yet? Town Manager Hoskovec
stated that he has made a tentative offer to Mr. Harrison, he has taken his polygraph, his urinalysis, and his
physiological exam and Chief Lock is doing the background check which should be complete in about two (2)
or three (3) weeks. Commissioner Price stated that the hiring won’t happen for two (2) or three (3) weeks
because of the background check. Commissioner Price stated that he is not clear as to the need for the
hiring freeze.
Commissioner Walters stated that the Police Chief position is the least of the problems and stated that he has
asked for months now why the Town went from a $250,000 possible surplus to barely breaking even and now
the State has advised that we have broken the law and will have to spend another $2,500 to resubmit the budget.
Commissioner Walters stated that he is concerned that we don’t have the numbers, don’t have the total cost for
the health insurance, we don’t know where the money is for the fire truck. Commissioner Walters stated that
he is concerned that we don’t have a clue where our finances are and have not had a valid monthly report in
six (6) months. Commissioner Walters stated that the Town should not hire anyone until we find out what our
financial situation is.
Commissioner Price stated that a budget is based on anticipated revenues, which are ad valorem taxes, the
rest is based on projections such as citations and the other main part of the budget is grants that cannot be
co-mingled with other funds. Commissioner Price stated that if he understands the budget as pertaining to
ad valorem taxes, all municipalities must budget a minimum of 95% of the expected revenues of these taxes
and the Town should have budgeted around 97% rather than 95% and there was an error and we less than 95%.
Commissioner Price stated that this still does not affect the money for the fire truck and we till have to redo the
budget and come up with a budget with at least 95% of the expected revenues, based on the ad valorem taxes.
Mayor Crispen asked the Finance Manager to explain the error and the remedy for the error. Town Manager
Hoskovec stated that the budget will need to be readvertised and the public hearing on the budget has been
scheduled for November 20th. Finance Manager Matthews explained that she performed her calculations
based on line 6 figures rather than line 4 figures as on the DR-420 Form and stated that she received a verbal
approval from Velma Smith at the state.
Mayor Crispen stated that the Town Commission can start the budget process from scratch or approve the
budget that was previously passed.
Commissioner Walters stated that in August, he sent a memo to the Town Manager and asked why he was
budgeting only 90% of the ad valorem taxes and he never received a response, but at the next budget meeting,
the figures were based on 95%. Commissioner Walters stated that he called the state and was advised that
it is rare and advised that this has never happened to the Town before and that the state offers classes to
deal with this subject specifically. Commissioner Walters stated that the Town has not had good figures
and this is only the symptom of something worse and the Town Commission should go over the budget again
and make sure the figures are correct.
Commissioner Guglietta stated that he will vote against the budget as it currently exists and stated that his
problems are the finance clerk position, various raises and stormwater utilities. Commissioner Guglietta suggested
a freeze on the budget and give town administration time to find what the problems are submit the budget at last
year’s rate and reopen the budget again. Commissioner Guglietta asked Town Attorney Gougelman if there
would be a problem freezing all salaries at last year’s levels.
Town Attorney Gougelman advised that since raises have already been given and are going out in pay checks
and the raises were based upon an improperly adopted budget and stated that he has never faced a situation
like this and he would think the bottom line is that an employee could claim a property interest in their job and
could make a claim as to what the pay rate once it has been given.
Mayor Crispen stated that he is concerned about satisfying the Department of Revenue and stated that the
Town Commission can adjust the budget at any time throughout the year. Mayor Crispen stated that the Town
has gone through a lengthy process to hire a Police Chief and has made an offer to a candidate and to impose
a hiring ban on an indefinite basis does not benefit anyone.
Commissioner Price commented that the Town needs to get a budget acceptable to the State of Florida based
on their time table with the understanding that once we do this, the Town Commissioner can make amendments
to the budget as it sees fit.
Mayor Crispen opened the meeting for comments from the public regarding the budget.
Jan Futch, 806 Oak Street suggested that the Town get this right with the State and needs to get a new Police
Chief as there is money in the budget for the salary.
Alice Graham, 305 Fifth Avenue asked where the new Police Chief is from. Town Manager Hoskovec stated that
he is from Miami Shores. Ms. Graham stated that we are a small Town and we always get Police Chief from
Miami who don’t work out for our Town.
Sherri Quarrie, 701 Pine Street asked how much money expended to interview and go through all of the
applications for Police Chief? Town Manager Hoskovec stated there were no real expenditures, all applicants
came to interview at their own expense, staff time and volunteer time was used. Town Manager Hoskovec
stated that the expense of the examinations was approximately $300, plus the background investigation.
Ms. Quarrie asked how many applicants were received for the position? Town Manager Hoskovec stated
that 30 were received and this was narrowed down to five (5) with one withdrawn application. Ms. Quarrie
commented that the budget error was approximately $12,000 more or less and commented why take the
Police Chief position and start the process over?
Oxchitl Ross, 1106 Atlantic Street commented that instead of having to spend $11,000 more, would it be possible
to reduce a line for by this amount? With this error, are we forced to spend more money? Or can this money be
allocated to a surplus account?
Tricia Riemer, 607 Riverside Drive commented that no one is in favor of not hiring a Police Chief and suggested
that rather than putting in an indefinite hiring freeze, give a time limit.
Ann Downing, 801 Pine Street pointed out that people will say that the State of Florida sent back the budget to
be corrected and resubmitted and at the meeting, they decided on a hiring freeze. Ms. Downing commented
that she is sorry to see this happen and maybe the Town should be more careful as to how this will look to
other cities and the residents.
After additional discussion, Mayor Crispen called for a break at 7:40 p.m. and called the meeting back to order
at 7:52 p.m.
Commissioner Guglietta asked that once this budget is fixed by the Town, is it his understanding that the
hiring freeze will be lifted? Mayor Crispen stated that the freeze will be lifted after a motion of the Commission
to do so.
Commissioner Walters requested to hear Commissioner Guglietta’s comments regarding his ideas for cutting
the budget. Mayor Crispen stated that this is a special meeting but the agenda was worded as to include any
discussion regarding the budget.
Commissioner Guglietta stated that he attended the budget workshops and stated that he had items that he
would like to make comments on. Commissioner Guglietta stated that on Page 16 is the Finance budget and
there was a proposal about a year or so ago to eliminate the Finance Clerk position due to the fact that the
Town was going to update the financial software and eliminate the outside Town accounting service.
Commissioner Guglietta stated that the Finance Clerk’s salary, with benefits is approximately $35,000.
Commissioner Guglietta commented that we are taking 7% of the budget to administer the budget and
we have a good Finance Manager and her error was unintentional and that he feels the Town does not need
the Finance Clerk position.
COMMISSIONER WALTERS MOVED, SECOND COMMISSIONER GUGLIETTA TO ELIMINATE THE POSITION
OF FINANCE CLERK EFFECTIVE DECEMBER 1ST.
VOTE AFTER DISCUSSION, COMMISSIONER WALTERS, AYE. COMMISSIONER GUGLIETTA, AYE.
COMMISSIONER PRICE, NAY. COMMISSIONER WILSON, NAY. MAYOR CRISPEN, NAY. MOTION DEFEATED.
Mayor Crispen opened the meeting to public comment regarding the motion.
Sherri Quarrie, 701 Pine Street asked if the Town did not recently buy software and computers for the Finance
Department so that the finance responsibilities can be done in-house and who would do the duties? Ms.
Quarrie stated that the Town put out $40,000 in software for finance to do this in-house rather than getting
faulty numbers from the outside vendor.
Mayor Crispen asked Finance Manager to briefly give her presentation from one of the budget workshops on
her justification for the Finance Clerk position. Commissioner Walters asked for a point of order as currently
the Mayor accepted public comment on the motion and now is asked for staff presentation. Commissioner
Walters stated that the Mayor is required by its rules to poll the Commission to see if it believes he is correct
or not. Ms. Futch interrupted the discussion and Mayor Crispen verified with Ms. Futch that it would be helpful
if the Finance Manager gives a brief presentation regarding the Finance Clerk position.
Ms. Matthews stated that when the Town eliminated the outside finance service, one person was eliminated
and they did the payroll processing, the accounts payable processing, all reports, all budget processing. Ms.
Matthews asked who is going to do this work? Ms. Matthews advised that the computer system needs to
be managed, which is her job. Ms. Matthews stated that one person in finance cannot process checks and
reconcile the bank statements. Ms. Matthews advised that if someone is on vacation or sick, there will be no
one in the Finance Department. Ms. Matthews stated that the Town will no longer have someone to handle
cash management, assist the Town Manager and all departments in budget preparation, prepare the annual
budget book, the daily deposits will have to go back under the Town Clerk, along with the accounts payable
check finishing. Ms. Matthews stated that the W-2 forms have to be done and the 1099 forms have not been
done for the last three (3) years and these need to be completed. Ms. Matthews stated that she is not the
person to do the Finance Clerk’s work and asked that the Town Commission eliminate the Finance Manager’s
position.
Jim Hunter, Volunteer Fire Chief commented that today the Finance Department works 300% better than
previously and that the Finance Clerk, Sandi always has the answers to his questions or gets the answer
readily. Chief Hunter stated that he will guarantee that the other department heads will say the same thing
and we can’t go back to the nightmare trying to save money. Chief Hunter stated that the Town Commission
needs to have logic behind saving money. Chief Hunter stated that Sandi is great and it would be a crying
shame to get rid of her.
Sherri Quarrie, 701 Pine Street, does not know staff on a personal level and stated that you don’t save money
by having a $2 million dollar enterprise by getting rid of finance people. Ms. Quarrie stated that this is the way
to cause problems because one (1) person cannot do everything needed to run a business.
Town Manager Hoskovec stated that the Town Commission tasked him to hire a Finance Manager and
reevaluating after a year whether to maintain both positions. Town Manager Hoskovec stated that he found
someone to serve as a Finance Manager as well as someone to manager the IT program.
Town Manager Hoskovec stated that as his recommendation and as the recommendation of the auditor,
maintain two (2) employees in the Finance Department.
Commissioner Walters stated that the Town Commission went by a previous Town Manager’s recommendation
and decided to outsource the finances and she assured the Town Commission that everything would be fine
and we would save money and it did not work out. Commissioner Walters stated that one (1) year ago, the
Town Manager told us that if we could get a Finance Manager and the proper software and equipment we
could get this done and bring the finances back in-house and not spend the $13,000 annually. Commissioner
Walters stated that the Town hired a $40,000 Finance Manager and this job does not require another full-time
person because there is not enough work for people to do in any given day. Commissioner Walters stated
that the Town spent $50,000 on new software. Commissioner Walters commented that the Town still does
not have good solid numbers.
Commissioner Guglietta stated he was on the Town Commission when it was proposed to eliminate the
Finance Clerk’s position and bring in a Finance Manager, which would save time, along with $50,000 of
new software and computers. Commissioner Guglietta stated that there is roughly $67,368 spent in the
Finance Department with salaries and benefits with benefits added, it is $90,000. Commissioner Guglietta
stated that with the Town Manager and a good Finance Manager and $50,000 worth of software, they could
be the checks and balances. Commissioner Guglietta stated that the Town is paying too much money to
administer a $2 million budget, with 22 employees, and if pay 7% to administer a $2 million budget, I am an idiot.
Commissioner Price stated that the biggest mistake will be to eliminate the Finance Clerk position, the
operations are back in-house, we have invested in software and computers, we always need more employees
with computers and software, not less. Commissioner Price stated that we cannot function in the Finance
Department with one (1) person and the auditors do not want the people writing the checks also reconciling
the books.
Mayor Crispen stated that when he got on the Commission 2 year’s ago, he went to the Finance Department
and asked questions to learn about the budget process and he did not get a lot of answers, but he learned
that the numbers were unreliable. Mayor Crispen stated that he was frustrated and committed to changing
the Finance Department to get good data and to stop this process would be a disservice to the Town. Mayor
Crispen stated that if we vote to eliminate the Finance Clerk position, it will put a strain on the Finance Manager.
Commissioner Wilson stated that he feels as he did last summer that if one person in the Finance Department
is on vacation or if sickness strikes, with nobody left to back the finance position up, this is a dangerous
department to try to save money in. Commission Wilson stated that the Town cannot eliminate the Finance
Clerk position at this time.
Commissioner Guglietta stated that on Page 26, under the stormwater utility fees, he sees a Public Works
Maintenance Worker II position funded and that it is his understanding that when the utility was created, a
position was moved to that budget and asked if it is logical to take the maintenance worker II and transfer
him back to the Public Works budget. Town Manager Hoskovec stated that when he came to the Town,
the stormwater utility had already been created and it is his understanding that when this was created the
position was moved from the Public Works budget. Commissioner Guglietta stated that it would be wise to
move him back under the Public Works budget and expenses it out through there rather than the Stormwater
Utility budget. Town Manager Hoskovec was asked to look into this and report back to the Town Commission
at the budget public hearing.
COMMISSIONER GUGLIETTA MOVED, SECOND COMMISSIONER WALTERS TO EXTEND THE MEETING
ONE-HALF HOUR.
VOTE: ALL AYES. MOTION CARRIED.
Commissioner Guglietta stated that on Page 18, there are 13 employees in the Police Department, four (4)
supervisors and six (6) patrolmen and commented that this one and one-half patrolmen to each supervisor
and commented that the department is a little top-heavy with supervision.
Commissioner Walters commented that he does not understand why they need a Chief, a Lieutenant, two (2)
patrol officers and a secretary on day shift. Commissioner Walters stated that he has noticed that the Lieutenant
is on the day shift and the sergeants are on the night shift and the Chief used to supervise the day shift with the
sergeants supervising the two (2) night shifts. Commissioner Walters stated that one would think that if a
sergeant on the night shift goes on vacation, the Lieutenant on the day shift would move to nights to fill in,
but this is not happening. Commissioner Walters stated that the Lieutenant is on days as an administrative
Lieutenant and the Chief is free to do whatever he chooses. Commissioner Walters stated that there seems
to be one (1) too many supervisor positions if they are going to be used this way.
Town Manager Hoskovec stated that if we are going to keep a 10-person Police Department, he would like
both the Chief and Lieutenant to be on 12-hour shifts and cover the Town so that there is always a supervisor
on each shift, which is his plan when the new Chief is hired.
Commissioner Guglietta asked the Town Manager to work on his proposal and come back to the Town
Commission with a recommendation on how structure the Police Department so that the department is
covered every day and evening with supervision on each shift. The Town Commission advised that this
can wait until the new Police Chief is hired.
Commissioner Wilson stated that we have a new Commission now and we are absent a Vice Mayor
because Connie Smith was the previous Vice Mayor.
COMMISSIONER WILSON MOVED, SECOND COMMISSIONER GUGLIETTA THAT COMMISSIONER
WALTERS BE APPOINTED VICE MAYOR.
VOTE: ALL AYES. MOTION CARRIED.
III. ADJOURNMENT
COMMISSIONER WILSON MOVED, SECOND COMMISSIONER GUGLIETTA TO ADJOURN.
VOTE: ALL AYES. MOTION CARRIED.
The special meeting of the Town Commission of the Town of Melbourne Beach, Florida adjourned at 9:13 p.m.
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MARK J. CRISPEN, MAYOR
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CYNTHIA E. MASNY, CMC
TOWN CLERK
Note: a mechanical recording has been made of the foregoing procedures of which these minutes are a
part and is on file in the office of the Town Clerk.
PURSUANT TO SECTION 286.0105, FLORIDA STATUTES, THE TOWN HEREBY
ADVISES THE PUBLIC THAT: If a person decides to appeal any decision made by the
Town Commission with respect to any matter considered at its meeting, he will need a
record of the proceedings and that for such purpose, affected persons may need to insure
that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. This notice does not constitute
consent by the Town for the introduction or admission into evidence of otherwise
inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not
otherwise allowed by law.
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