Minutes for October 9, 2006
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DRAFT
Board of Trustees
Workshop Meeting
Monday, October 9, 2006
1:00 p.m. – Building D&E
The Barefoot Bay Recreation District held a workshop on October 9, 2006 in Building D&E, Barefoot Bay, Florida. Madame Chairman Wilma Weglein called the meeting to order at 1:00 p.m.
Ms. Weglein announced there would be no audience participation today. The workshop is designed to interview candidates for the position of District Interim Community Manager. There are three candidates and three management companies scheduled.
Ms. Weglein requested prayer for our servicemen where ever they may be serving. Amen
Ms. Weglein led the Pledge of Allegiance.
Ms. Weglein called the roll. Ms. McCahan and Mr. Bailey were excused. Mr. Malek was present as counsel.
Mr. Dobbins has about 30 years’ city government management experience. He is not interested in a permanent position as Community Manager, but would come from Michigan for about 6 months. Mr. Dobbins feels his basic “value added” to the Bay is his depth and breadth of experience. His experience gives him substantive exposure to many different areas from finance to zoning, to community development, to Board relations, building consensus [coming to agreement on goals and objectives] and getting things done in a specified period of time as established by the Board in consultation with staff. Looking at the long range goal of the organization structure for Barefoot Bay, Mr. Dobbins would assist the Board in working with staff and the community in articulating different options.
Ms. Richards asked Mr. Dobbins if he was aware of the special parameters a special district and a Deed of Restrictions presents. Mr. Dobbins responded he was aware of some of the disadvantages of being a special district and a government, and not a lot of advantages in the current organizational format. In terms of a long range alternative, Mr. Dobbins visioned an outside management company and staff working together. Mr. Dobbins commented a management company like Sevren Trent does have some value.
Ms. Richards asked again if Mr. Dobbins had experience with a special district. Mr. Dobbins responded he had not managed one. At Hinsdale, Illinois, there were 160 acres of parks, a pool facility, a lodge facility which was a profit and loss operation and used for weddings, conferences, etc. Mr. Dobbins likened it to being very much like Barefoot Bay.
Mr. Carillion commented the interim manager who is hired will inherit a problem with the computer system and finances. The audit shows nothing missing. Mr. Carillion asked if Mr. Dobbins would be comfortable in that situation. Mr. Dobbins has experience with developing advanced budgeting systems. He worked for 17 years in Hinsdale with a challenging and demanding Board of Trustees. One of his questions regarding the financial software would be: does NPT have the depth of talent in their software firm to support the system the District purchased, and with the software, can an effective audit trail be established? Mr. Dobbins acknowledged that staff has put together a plan that addresses the issues in the audit just completed. Mr. Dobbins credited the 2004 hurricanes with some of the mess saying that hurricanes, especially as hard hit as Barefoot Bay was, are not just one-time events. The effects are ongoing and especially in a small staff environment produce challenges that are hard to keep on top of. Mr. Dobbins felt he could be of service fulfilling the expectations established by the Board.
Ms. Howard inquired regarding Mr. Dobbins leaving South Palm Beach in 2001. He responded he had joined the Colin Baenziger consulting firm and bought a house in Marshall, Michigan in order to establish an independently contracted consulting firm there.
Mr. Keegan asked Mr. Dobbins to comment on the pros and cons of a management company versus continuing the practice of working with an individual [community manager], or a combination of both. Mr. Dobbins responded management companies are extremely good at performing repetitive functions like payroll, general ledger, getting monthly reports out on time, and establishing an audit trail. A management company protects the client from the effects of staff turnover. The disadvantage is an inability to look at “the big picture” and to respond instantaneously on some issues. One advantage of retaining a community manager is accessibility. Mr. Dobbins cited South Palm Beach as having retained an excellent staff that works with the management company. He said that arrangement would certainly have to be retained in Barefoot Bay given the daily operations in place here.
Mr. Keegan was concerned regarding a management company’s possible loyalty conflict. Mr. Dobbins responded the contract specifications should be performance related. He said, however, if the company had 60 other districts to manage it could become an issue at some time.
Mr. Smith’s main concern is whether a management company or a community manager is a better arrangement for the employees. Mr. Dobbins responded that better benefit packages and competitive pay generally retains employees.
Mr. Carillion commented any manager in Barefoot Bay should have a very thick skin and be able to withstand active criticism. Mr. Dobbins responded instantaneous access to the manager/administrator gives rise to criticism. Embracing that kind of thing is a basic tenet of public service. Acknowledging and treating everyone fairly often allays their concerns even if [you] can’t give them the answer they were looking for.
Ms. Harty commented most of her experience and education is with municipal administration. In Leisure Village, Long Island, Ms. Harty owned and operated a management company with her family. Ms. Harty functioned as the manager in the Town of Orchid when the incumbent passed away. As the finance administrator for the Town of Orchid, Ms. Harty handled all the financial functions similar to those in Barefoot Bay, and her audit reports were always exemplary. Ms. Harty worked with existing staff to develop and implement a records keeping program in the Building Department. Ms. Harty commented her exceptional skills in communication, organizational and motivational abilities, and her willingness to do the job with enthusiasm would benefit the Bay.
Ms. Howard asked Ms. Harty if she was aware the interviews [today] are for the temporary community manager interim position. Ms. Harty responded that she was aware of that.
Mr. Carillion asked if the Leisure Village in Long Island was connected with the Leisure village in Buffalo, New York. Ms. Harty replied that as a management company she did not know of a connection.
Ms. Richards asked if Ms. Harty had had experience as a city manager. Ms. Harty was acting town manager when the Town of Orchid’s incumbent passed away.
Mr. Keegan asked if Ms. Harty had any other municipal experience other than the Town of Orchid. Ms. Harty responded that was her only municipal management experience. Mr. Keegan asked if she had secondary full time schooling in town management. Ms. Harty replied that when there was a need, she took a class.
Ms. Weglein asked what the population of Orchid is. Ms. Harty responded that when she left that position there were about 1,000 residents.
Mr. Smith asked about recent troubles in the Town of Orchid. Ms. Harty responded she had applied for the position permanently [Town Manager]; however, there is currently a completely new staff in place.
Ms. Daddario has been a CFO controller for over 30 years and has experience with computer conversions and how to solve the problems they present. Ms. Daddario is a Barefoot Bay homeowner, and has a vested interest in the community. She does not have the community managing background, but stressed that organizations are structured similarly. Ms. Daddario currently performs contract work in keeping with her level of expertise as the job market is different in Southern Florida than in Dallas, Texas, where she has resided for the last 30 years. She is currently completing an MBA degree in accounting at FMU in Melbourne, FL.
Ms. Richards asked Ms. Daddario how long she has resided in Barefoot Bay. Ms. Daddario responded she has lived here four years; she and her husband came to assist her parents, who had lived here many years. Ms. Richards noted Ms. Daddario’s experience in the private sector and asked how that would translate to a government entity. Ms. Daddario worked for a state and federally funded non-profit that operated under a charter. The State of Texas was about to cancel their charter regarding audit issues; Ms. Daddario restructured the organization’s financial system and managed the next year’s successful audit.
Mr. Carillion commented the interview’s purpose is to hire an interim manager, but asked Ms. Daddario if she would be interested in becoming permanent. She replied, “Absolutely.” She feels her expertise regarding “going into companies and cleaning up a mess” will be of great help to the Bay. One of her strong points is being able to put the right person in the right job. Quite often, there are a lot of really good people, but they are not necessarily doing what they are best at doing. Or they may not be trained in the position they are holding.
Ms. Howard asked about Ms. Daddario’s IT experience. Ms. Daddario attended IBM’s school in Georgia and California to become a Certified Systems Operator, which was part of her position as Controller. She said as a controller she “often wore the IT hat.”
Mr. Smith acknowledged that as the community manager Ms. Daddario would be a target and asked her how she felt about that. Ms. Daddario responded that in a senior management position [you] can never make everyone happy. The important thing is to know the priorities and expectations. She said that would be a priority for her, to know what the Board’s goals and expectations are because it would be her job to follow the Board’s direction.
Mr. Keegan presented a hypothetical emergency situation not related to finance and asked Ms. Daddario how she would handle it. Ms. Daddario prioritized Mr. Keegan’s hypothetical list, saying “employees in an uproar” would not be a surprise to her because she connects with employees concerns on a daily basis, and the contractor hitting something with a vehicle would prompt an immediate telephone call to the insurance company.
Ms. Donahue asked about Ms. Daddario’s interviewing skills and experience with evaluations. Ms. Daddario responded she had experience with both situations, and stressed honesty and integrity as well as goal setting being very important to outcomes.
Ms. Weglein commented she had mentioned the interviews would take place in a workshop environment; that the Board could not, by law, operate in a private session.
Mr. Keegan asked at what stage the Board would find out what the salary requirement might be for the successful candidate. Ms. Weglein suggested the Board ask them. Mr. Keegan asked if the salary negotiations would be done in public, or written and passed up to the chairperson. Ms. Weglein agreed it would be written and given to the chairperson. Mr. Carillion concurred the financial negotiations should be handled by the chairperson.
Mr. Carillion asked when the candidates would be available to begin employment. Ms. Harty and Ms. Daddario could begin immediately. Mr. Dobbins could begin October 23rd. Mr. Carillion asked if the candidates could meet with Mr. Hunt to review current projects, etc. Mr. Malek commented there should be an “overlap” period to make the transition go more smoothly.
Ms. Donahue spoke to Ms. Harty and Ms. Daddario asking if they understood the Board was seeking an interim manager position only at this point. She said, “If you wanted to apply for the permanent position, this wouldn’t be it.” Ms. Donahue went on to say the Board had concurred that the interim position would not lead to the permanent position.
Ms. Weglein asked if the candidates had any questions for the Board of Trustees. Ms. Harty asked what the Board’s top priority is. Mr. Carillion responded that for him the top priority is to work with the Financial Officer and follow up with the computer’s financial software to produce accurate monthly financial reports. Mr. Carillion’s second priority is the contracts currently in performance. Ms. Howard’s priority is the general ledger.
Ms. Weglein pointed out Mara Marsocci, the Financial Officer, and suggested the candidates might wish to talk with her. Eddie Geer, the Project Manager, was also in attendance at the meeting if the candidates had an interest in talking with him, as well.
Mr. Dobbins commented he had spoken with Yvonne Claiborne [of Bray Beck and Koetter] last week and been informed that staff had already prepared a plan of action regarding the general ledger and the bank reconciliations. “If that’s what you want this person to do, I ain’t your candidate. I’m not. Perhaps the other candidates would be more appropriate. It’s my understanding that’s in the process of being done and is, in fact, on its way.”
Ms. Howard commented what she meant was the manager would oversee that it was, in fact, done. Mr. Dobbins agreed that would be the manager’s job.
Mr. Pimental gave the Board company brochures. He introduced Neil Kalin, one of his district managers. SDS currently manages about 55 districts, and Mr. Pimental has 30 years of experience. He cited Northern Palm Beach Improvement District which had 125,000 acres and which he had managed for 24 years, operating and maintaining the infrastructure. Mr. Kalin’s history includes 20 years of golf course construction management and turnkey operations. SDS maintains a staff of about 18 people and 5 managers. Mr. Pimental’s company provides a full range of services for special districts. He commented if the Board wished for his company to submit a proposal, he would be happy to do that.
Ms. Weglein commented Barefoot Bay Recreation District collects its assessments through the administration office and not through the tax collector. Mr. Pimental responded the tax collector method is cost effective because it is 99.99% guaranteed collection for a nominal fee and there are already established channels to handle delinquent payments.
Ms. Donahue commented she was “excited” about the management company idea for Barefoot Bay. She asked if the Bay’s employees would become SDS employees if SDS were to be selected. Mr. Pimental responded SDS could work any way the Board wished. Special districts are land owner driven. Arrangements are up to the Board.
Ms. Richards asked if Mr. Pimental’s experience included special districts run by a Board of Trustees in a quasi-governmental setting. Mr. Pimental said he did that for 24 years with a staff of operational employees. Most of the community development districts don’t require a full time manager on site. Mr. Pimental said the department heads should be able to run their departments on a day to day basis with management oversight. Ms. Richards asked if SDS would provide the manager and all the staff, too. Mr. Pimental responded SDS could do that if the Board wished.
Ms. Howard commented on how much that would cost. Mr. Pimental replied SDS would not want to duplicate personnel and would wish to ensure there were cost savings, or if nothing else, more efficiency. There have to be trade offs. It might cost more dollar wise, but efficiency, service and smooth function might be worth it to the District. Mr. Pimental said he couldn’t figure prices until the District told him what it wanted.
Mr. Smith commented on the special act that set up the District saying that in the initial stages it was granted the District could collect assessments once a month. Mr. Pimental responded the tax collector has a program that can do the same thing. Mr. Pimental acknowledged he didn’t know if the granting needed to be “tweaked” in order to allow the tax collector to handle the assessments or not.
Mr. Carillion asked Mr. Pimental if SDS maintained a lobbyist in Tallahassee that would look out for the District’s interest. Mr. Pimental suggested if Barefoot Bay Recreation District was not already a member of the Florida Association of Special Districts it should join. One advantage is having a lobbyist. On an annual basis the Department of Community Affairs and the Special Association host a conference with programs on how to be a board member, cutting edge technology for special districts, what’s going on with other special districts. Mr. Pimental feels this is important because Barefoot Bay is a small city. Mr. Smith commented the Bay’s board members used to attend those meetings but membership was dropped because it cost too much.
Mr. Keegan asked how SDS evaluates performance once its manager is in place. Mr. Pimental responded the first indicator is feedback from the Board. SDS uses a standard “ratings system” form of evaluation. The manager works for SDS. If the Bay were to keep a community manager position, SDS would be only a consultant. In that case, Mr. Pimental hoped the Bay would look for a person that would not need SDS’s assistance.
Mr. Keegan asked Mr. Pimental how he goes about recruiting managers. Mr. Pimental said he had “pretty good name recognition in the State of Florida”. He has “a stack” of good candidates on his desk; he just doesn’t have any openings to hire them at present. Mr. Pimental went on to say if the District chooses to “go that way” he is available to interview manager candidates with the Board to find a good fit with good chemistry. Mr. Pimental stressed good chemistry is of utmost importance in choosing a manager.
John Petty presented DVD’s to the Board members and called it “brag stuff” to introduce the finer details of Sevren Trent’s services. Janice Larned is a financial officer for Sevren Trent. Mr. Petty commented he had perused the Bay’s website, financials, the audit, and the budget. He noted the Bay has several programs still outstanding with FEMA as a result of the 2004 hurricanes. Mr. Petty understands the Board’s present focus is whether to consider contract management or in-house management. He said a very strong in-house manager and 80 employees would do well, but the manager has to be a leader. Employees are the single most highly respected, expensive resource an organization has. Without them not a lot gets done. From Sevren Trent’s perspective, if the Board goes with contract management, priority focus would be to install someone who could win the respect of all the employees and lead them. Financially, the audit raised some issues, but it does not appear to Mr. Petty that the Bay is going broke any time soon. The community appears stable. He said when [you] have a company you can hold to an efficiency rating, the rating is typically higher than obtained in-house. The reason is [you’ll] treat a contractor rougher than [you] will an employee. Sevren Trent places a manager on site with certain performance parameters that are objective driven. When the contract includes the financial area, the company will perform an acquisition audit that would provide a “clean slate” to start from. This involves an independent third party similar to the District’s auditors. Mr. Petty claims contract services are competitive with an in-house manager. Typically, Sevren Trent provides a complete package. The company budgets according to business concepts rather than bureaucratic concepts. Most bureaucracies have to budget to the worst-case scenario. Sevren Trent budgets to the average case scenario because they put financial tools in place to cover [you] for the worst case scenario versus funding. Letters of credit can be a funding tool in order to not carry more reserves than are needed. Financial credit should be used for “what if” scenarios rather than raising assessment fees.
Mr. Keegan asked where Sevren Trent draws its management talent. Mr. Petty said we’ll draw from where ever talent comes from. Currently, there is talent all over the state. The first thing Mr. Petty would consider for this District is a manager that is customer service oriented.
Ms. Richards asked if Mr. Petty knew Barefoot Bay is a deed restricted community. He responded that he did, and found that unique in a special district. Ms. Richards asked is he were experienced working under those parameters, or if it would present a problem. Mr. Petty replied there would be a learning curve, but expected no problem.
Mr. Keegan asked if the company would be interested in the interim position. Mr. Petty responded Sevren Trent had people qualified to perform in the interim, but he’d rather discuss what the Board wants and tailor the company’s program. Mr. Keegan asked what Mr. Petty preferred. Mr. Petty replied his firm could provide both and would enjoy talking “to this body” about their interest in either.
Mr. Carillion asked if Sevren Trent would recommend “taking over” the community manager’s job and the financial officer’s job. Would Janice Larned oversee our financial person? Mr. Petty responded that Ms. Larned handles the checks and balances that are important in government business. Ms. Larned would work with existing positions. However, a good manager has to have control of the money structure. Mr. Petty said the arrangement would have to be about management with oversight of the budget and “the dollars’.
Mr. Carillion asked if a management company would have difficulty adapting to Barefoot Bay. Mr. Petty replied the hurdle is going to be can a management company bring in the customer service oriented people [you] need. That is different than the typical special taxing districts Sevren Trent takes care of. They usually stick with the requirements of infrastructure: roads, water management, water and sewer, etc. Those things do not generally require the interface that a recreation district does. There would be a challenge to get the right people.
Mr. Carillion asked if the management firm would hire department heads and generally handle existing staff requirements. Mr. Petty replied the districts they manage now have their own employees. He feels the first priority would be to motivate the department heads to perform efficiently. If they could not do this, he would replace them.
Mr. Carillion asked what the Board should do at this point to obtain a proposal from Sevren Trent. Ms. Weglein responded the Board had agreed to investigate the management companies at a later date. In order to construct a proposal the companies would need more time to look over the District’s requirements.
Richard Wrenn’s company is an off-site management company working out of Melbourne Beach, Fl. It has been in business 20 years. Mr. Wrenn said he received a telephone call from a resident of Barefoot Bay, and Ms. Weglein. Mr. Wrenn cited “an old law in business: 20% are the great people who work for you; 70% are the middle management; and 10% are the people who shouldn’t be working here.” Your job in managing this place is to find out if you’re top heavy in management. Just from looking at the budget, Mr. Wrenn feels Barefoot Bay Recreation District is top heavy. Then [you] have to look at the second 70% in a different way. That’s where the important people are. [You] have to lead them, encourage them, teach them, and make them better so they’re more efficient for you.
Mr. Wrenn commented Barefoot Bay Recreation District pays someone approximately $40,000 [excludes benefits] to do your employee work. He feels Barefoot Bay Recreation District could “buy” an outside service that would perform employee payroll every week for less than what it currently costs with benefits. The company is called Payroll & Paychecks; he urged the Board to contact Adam at (407) 256-9409. An outside service pays the penalties if anything is late. Mr. Wrenn checked out Satellite Beach’s Code Enforcement set-up compared to Barefoot Bay’s. Satellite Beach has one code enforcement officer and one clerk. Mr. Wrenn noted there was too much crossover between ARCC and Code Enforcement.
Mr. Wrenn commented his company manages as many as 10 districts with three people in the office, and they do it efficiently. Out of the Bay’s $56 monthly assessment fee, $25 goes to administrative costs. He feels this is “really high”. Mr. Wrenn commented “the bureaucracy may have grown during the hurricanes because it was needed” but it doesn’t look to him that employee expenses are in line or that the Bay has the right type of employees.
Mr. Wrenn did not see enough reserves in the budget to recondition the facilities. He said keeping up with maintenance is less costly than repairing. Commenting on the pools, he said cracks in the concrete indicate washouts in the sand underneath, which allows more sinking, and more cracks. Expandable caulking would contain the cracking and contain costs. Employee use of their private vehicles for company business is a huge liability. The District should carry insurance to cover use of private cars.
Mr. Wrenn suggested meeting with management and encouraging openness and candor. Then the second 70% can be ‘brought into the program”. The employees should be made to feel important at the same time they know they are being monitored for productivity. By doing these things, Barefoot Bay Recreation District can save a reasonable amount of money and keep from having to raise the fees to put reserves into the operating account.
Mr. Keegan asked Mr. Wrenn how his company differed from the others and asked about Mr. Wrenn’s background, including how Mr. Wrenn would “alleviate all our problems”. Mr. Wrenn commented his company would sub-contract the work. Mr. Keegan asked to whom Mr. Wrenn would contract the work. Mr. Wrenn said he would contact local engineers and other qualified workers in different disciplines. Mr. Wrenn does not maintain a permanent staff of his own. He would work with existing staff.
Mr. Carillion asked if Mr. Wrenn had managed other communities like Barefoot Bay. Mr. Wrenn said no, but he manages other communities which have the same problems and processes.
The Board members requested brochures and background material from Mr. Wrenn.
Mr. Carillion asked if Mr. Wrenn maintained a financial staff. He replied his company does everything through a CPA.
Ms. Donahue asked if Mr. Wrenn had worked with FEMA. He said he had.
Mr. Keegan commented management companies were a “big step” for Barefoot Bay to take between “now and Friday”. He wanted to hire an interim manager and then do a comprehensive study after the interim manager is in place. Many of the Board members concurred with Mr. Keegan’s view. Mr. Malek commented the interim manager’s main goal would be to help find a permanent replacement, be it a full time manager or the contract manager. Mr. Carillion proposed a series of workshops that would allow each firm about two hours. Mr. Malek suggested the management companies interview the Board to get information out regarding what they can offer and to get a better view of what is required.
Mr. Carillion commented management companies strive to make 25 to 35% profit. He doesn’t mind the profit if the management companies are going to provide a good return for the money. Ms. Donahue suggested the Board convene a workshop to hash out a job description for the management companies; the companies should adapt to what the Bay needs rather than the reverse. Ms. Weglein concurred with the idea of more than one workshop. Mr. Malek cautioned the Board to make sure the proposals are consistent for each management company so the Board is comparing ‘apples to apples’. Mr. Malek suggested the Board request the community manager send out a request for a proposal that will generate similarly consistent responses. Ms. Weglein commented the proposals would also include a survey of facilities, departments, employees, and an overall familiarity with Barefoot Bay Recreation District. Ms. Weglein offered to provide background material on the companies. Ms. Richards commented the Board should provide background on Barefoot Bay to the companies.
Mr. Malek cautioned the Board that not all the Bay’s problems will be solved immediately, but he feels the Bay can save money with a management company. Attorney’s fees would be reduced and needed only in events like audits.
The Board continued to discuss the various issues. Ms. Weglein said the decision would be made Friday.
Mr. Smith commented “a long time ago” a discussion was held regarding whether to form a district or have a management company come in. The residents voted to form a district with a district government and voted down the management company.
Ms. Weglein entertained a motion to adjourn. Mr. Smith made the motion to adjourn. Second Mr. Carillion. The meeting adjourned at 3:45 p.m.
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