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HomeMy WebLinkAboutMN-CA-2008-08-01CITY ADMINISTRATION COMMITTEE Regular Meeting August 27, 2008 Members Present: Alderperson Coles, Alderperson Zumoff, Alderperson Clairborne, Alderperson Schuler Members Excused: Alderperson Korherr Staff Present: Erik Whitney (Asst Superintendent of Public Works), Brian Wilbur (Fire Chief), Allen Green (Youth Bureau Director), Rick Ferrel (Asst Superintendent of Public Works), JoAnn Cornish (Acting Planning Director), Phyllis Radke (Building Commissioner), Leslie Moskowitz (Manager of OD), Steve Thayer (Controller), Scott Andrew (Deputy Controller), Schelley Michell -Nunn (HR Director), Denise Malone (HR Executive Assistant) Others Present: Members of the Public, Members of the Media Chairperson Coles called the meeting to order at 7:00 p.m. 1. Chairperson Greeting & Opening Statement Chairperson Coles welcomed everyone to the meeting and explained the evacuation procedures. 2. Announcements. None. 3. Agenda Review and Amendments Chairperson Coles stated that the following agenda items have been removed from the agenda: Item 12.2 - DPW: Establish Capital Project to Extend Sidewalk in the 700 Block of Hudson Street and Intent to Assess a Portion of the Cost Through the Uniform Sidewalk Improvement and Item 131 Attorney's Office - Ithaca Farmer's Market Lease Agreement. City Administration Committee Meeting August 27, 2008 Page 2 4. Approval of Minutes The minutes from the July 30, 2008 were not ready for approval. 5. Statements from the Public JoAnn Cornish, Acting Planning Director, spoke in support of the request to approve the resolution on Managerial Compensation Adjustment. Ms. Cornish thanked HR Director Schelley Michell -Nunn for her tireless efforts on behalf of Senior Staff. Managerial employees are not represented by a union nor have any one negotiating on their behalf. They work more than the number of hours they are required to work as a baseline, the minimum being 40 hrs per week. They work weekends, nights and holidays. They work from their homes while on vacation. They represent over 250 years of experience. Many Senior Staff make less than those they supervise. Some Senior Staff with 20+ years of service make less than a new hire in a subordinate position. They come to work each day knowing that they are not paid fairly. Yet, it does not stop them from doing their jobs to the best of their abilities. The tax increase for City residents is a major concern and Senior Staff is fully aware of the impact of this resolution's adoption on the City budget. Senior Staff is a wonderful group of dedicated civil servants who should be paid fairly and equitably. Ms. Cornish urged Common Council to adopt this resolution. Phyllis Radke, Building Commissioner, thanked the Committee for an opportunity to speak in support of the Managerial Compensation Adjustment Resolution. Senior Staff has been working on trying to get Common Council to understand their difficulties since 2003. 2003 was the year that Senior Staff did not get a pay increase. This has significantly compressed their salaries, allowing some bargaining unit members to make about $2,400 more than managerial employees. The longer that this issue is not addressed the more it will cost the City to correct. Ms. Radke asked the Committee to pass this resolution. Erik Whitney, Assistant Superintendent of Public Works (W &S), spoke in support of the Managerial Compensation Adjustment Resolution. Senior Staff is the core of the leadership for all City employees. In light of the expectation for Senior Staff to be fair, diligent and caring in their execution of their duties to subordinate employees, it is only fair that the same consideration be extended to them in lines of fairness and equity. Mr. Whitney thanked HR Director for her work in bringing this resolution forward. City Administration Committee Meeting August 27, 2008 Page 3 Brian Wilbur, Fire Chief, spoke in support of the Management Compensation resolution. Mr. Wilbur has been employed by the City for over 21 years. During those years, there have been discussions about the pay structure and the methodology used to determine various salaries within the bargaining units and within management. Efforts to get those addressed over the years have not been successful. It has lead to this point where the compression issue has pushed Senior Staff salaries awry. Mr. Wilbur mentioned that a recently appointed deputy is earning several thousands of dollars more than a long time veteran deputy. If the City does not address this problem now, the problem will only get worse. We are close to the point where the top bargaining unit salaries will surpass some management salaries. Senior Staff work many hours. In the Fire Department, management is subject to calls at nights, weekends and holidays. By February, some bargaining units employees have already overtaken management in pay. They work extra hours and get overtime. Management already works extra hours. Thinking in terms of hourly rate, management's hourly rate is not good. The hard decision is not "no ", but "yes ". Senior Staff is fully aware of the budget challenges coming in 2009, passed budget challenges and the fact that budget challenges are not going away. The City needs to engage this problem and to see Senior Staff for what they are - valuable resources. Allen Green, Youth Bureau Director, spoke in support of the Management Compensation resolution. Mr. Green has worked for the City over 32 years. He is affected by this proposal. Mr. Green thanked Assistant City Attorney Khandikile Sokoni for the letter she wrote to Common Council addressing this issue. The City has a fine HR Department. HR Director Michell -Nunn and Deputy HR Director Val Saul tried to approach this in a comprehensive way and address several issues. Interest on the part of some Common Council members to fiddle with the approach and try to address what they might see as being the most glaring inequities or try to solve what they might see as being the biggest problem can cause impacts that are not anticipated. Mr. Green encouraged Common Council to take the approach as outlined by the HR Department. To start micro managing it might end up with a less quality product. Rick Ferrel, Assistant Superintendent of Public Works (S &F), spoke in support of the Management Compensation resolution. There are some inequities that need to be addressed. A recently promoted managerial employee to a deputy position earned more than a counterpart who had been in the same position for a number of years. Salaries of subordinate employees are close to department heads. In another department, a deputy who moved to an acting department head position is earning less than a subordinate. The subordinate is entitled to overtime and comp time but not managerial employees. Managerial employees will be here for a number of years. It is time to look at their salaries and make some adjustments so that they are not driven away. City Administration Committee Meeting August 27, 2008 Page 4 6. Employee Comments. None. 7. Common Council Response Alderperson Clairborne thanked the employees for coming out tonight and expressing their thoughts. Chairperson Coles stated that when she first came on Common Council she would have been totally lost had it not been for department heads. The City would not function well were it not for managerial employees; it is only their absolute dedication and commitment to the City that allows them to do great work and allows the City to be a great place. Ms. Coles expressed her gratitude and appreciation to managerial employees for all they do for the City, for the residents and for members of Common Council. 8. Workforce Diversity (WFD) Committee Update Alderperson Clairborne reported that at the last meeting, the WFD Committee discussed how to approach the diversity plan reports that department heads will soon give once they are scheduled. Department heads will present their diversity plans at their respective Committees. They will be asked to submit their report in writing as it pertains to a specific part of their diversity plan. The WFD Committee will build a framework for questions and answers for Common Council members. This would allow Common Council to know what they should be listening for, what questions to ask and what would make the report productive for all. 9. Safety Committee Update Chairperson Coles reported that work continues to be done on the City's plans for implementing safety in the workplace. Ms. Coles will ask Employee Health & Safety Coordinator Andy Olmetti to attend a future meeting to give an update. HR Director Michell -Nunn reported that a Memorandum of Understanding has been drafted regarding the CPR training and distributed to the appropriate bargaining units. 10. Communication Committee Update. None. City Administration Committee Meeting August 27, 2008 Page 5 11. Regular Reports from Departments Reporting to CA - Controller's Office Controller Thayer gave his quarterly report. He last reported in March 2008. This will be a brief update of some of the items mentioned then. Most of his time now has been devoted to the 2009 budget development. The Controller's Office budget of $320,000 is adequate. In the near future, funds will need to be added to the budget for training, increased audit fees, increased hours for the Payroll Coordinator position and for a part -time to a full -time staff accountant. Training would be required for the many new accounting and auditing standards that are coming including GA513 45 and internal control changes. With these new requirements come increases in audit fees. Audit fees will increase about 28% or $7,000 for the next audit. Presently, the Payroll Coordinator works 35 hours per week. The Controller wants to increase the hours to 40 per week. Increased hours would help the office overall. It will assist in implementing new, more efficient, money saving payroll changes that are much needed. At some point, an additional staff person will be needed to help account for City operations as the budget and compliance requirements continue to increase. The 2007 State report will be completed by the October time period. The 2007 audit will be completed in November or December. The 2008 audit and State reports should be completed in a timely manner. Timely meaning the 2008 State report would be completed by May 2009 and the 2008 audit report would be completed by October 2009. Staff is working diligently to put the capital program on MUNIS. The City procurement card continues to be worked on and hopes to be completed by the end of the year. The card will be controlled by the Controller's Office and used for reserving hotel rooms, cars, etc. The 2009 budget for the Controller's Office has been submitted. City Administration Committee Meeting August 27, 2008 Page 6 12. Department of Public Works 1. Request to Amend Personnel Roster Moved by Alderperson Zumoff. Seconded by Alderperson Schuler. WHEREAS, the Department of Public Works, Streets and Facilities Division, requests changes in staff hours in an effort to reorganize the office due to the retirement of the Office Manager; now, therefore be it RESOLVED, That the employee roster be amended as follows: Increase - Office Manager position from 35 hours to 40 hours, Increase - Financial Management Assistant position from 20 hours to 40 hours, and Decrease - Financial Clerk position from 40 hours to 20 hours, and be it further RESOLVED, That this change take effect upon the retirement of the current Office Manager, and be it further RESOLVED, That said personnel roster amendment be made within the existing 2008 authorized DPW Budget. A vote on the resolution resulted as follows: Passed unanimously. 13. Human Resources (HR) Department 1. Request to Approve Managerial Compensation Adjustment Moved by Alderperson Schuler. Seconded by Alderperson Clairborne. WHEREAS, the City has experienced managerial compensation issues over the last ten plus years that have compounded significantly, impacting on the City's ability to operate competitively, and City Administration Committee Meeting August 27, 2008 Page 7 WHEREAS, the Director of Human Resources proposed a compensation adjustment plan during the 2008 budget process, to address the issues of compression, recruitment and retention, totaling $67,658, and WHEREAS, due to financial restrictions and priorities, Common Council set aside $20,000 to address these concerns, and WHEREAS, the Director of Human Resources recommended that the $20,000 be applied at a time in the year (late September) which would allow full implementation, and WHEREAS, Common Council is not inclined to fully implement the proposal at this time but would consider alternate options, and WHEREAS, the Director of Human Resources, in an attempt to meet the request of Council, suggests that the adjustments be applied as a proportion of the amount set aside to the amount needed, and WHEREAS, $20,000 is approximately 25% of what is necessary to fully implement the proposal recommended by the Human Resources professionals; now therefore be it RESOLVED, That 25% of the recommended adjustments, plus benefits, be applied to the salaries of all senior staff listed in the proposal, effective January 1, 2008, and be it further RESOLVED, That in the event that Common Council continues to set aside money to address these serious issues, that the same calculation will be used unless Council chooses to fully implement. After discussion, Alderperson Zumoff made a motion to remove the last Resolved. Seconded by Alderperson Clairborne. After further discussion, Alderperson Zumoff withdrew his motion. A vote on the resolution resulted as follows: Passed unanimously. City Administration Committee Meeting August 27, 2008 Page 8 2. Director's Report. None. 14. Finance /Controller 1. Controller's Report. Controller Thayer reported on the following: Budget Development (2009): The 2009 Budget Development is ongoing. The Mayor and the Controller have been meeting with departments regarding their budgets. The Controller is waiting to receive information on the cost for health insurance, property and liability insurance and pension. The Mayor's proposed budget is due on October 1St Operations Cost (2008): The overall cost of operations continues to increase at a significant rate. The CPI for July 2008 is at 6.2 %. The average for the 7 months for 2008 is 5.1 %. Construction Cost (2008): The construction cost, including asphalt, is increasing about 20 %. Utilities (2008): Fuel cost continues to rise. State Aid: The City will receive the 2008 State Aid payment of about $2.8 million dollars. This is an 11.26% increase over 2007 State Aid. Sales Tax Revenue: The sales tax revenue continues to be strong. Overall the revenues are up about 11.7% over 2007. August was up almost 7 %. The budgeted increase amount was 4.3 %. At this pace, the City will see about $785,000 increase above 2007 in sales tax collections. Cash Flow: Even with the retro payments being paid for members of both the DPW Unit and Executive Unit, the City is still doing okay. Parking Revenue: The City is on pace to meet the $1.5 million dollar budget for 2008. Meters are about where they were with 2007 collections. Dryden Road Garage is up about 13% due to the new equipment and being closed for construction in 2007. City Administration Committee Meeting August 27, 2008 Page 9 Fine Revenue: The fine revenue is projected to be in excess of our budgeted amount of $850,000. 15. Reports 1. Mayor's Report. None. 2. Sub- Committee Updates. None. 3. Council Members' Announcements Chairperson Coles reported that the Capital Project Overrun meeting will be held on September 11, 2008 - 12:00 noon to 1 :00 p.m. - 2nd Floor Conference Room. A second date has been scheduled for September 15, 2008 - 11:00 a.m. to 12:00 noon - 2nd Floor Conference. 4. Next Month's Meeting: September 24, 2008. 16. Adjournment With no further business and on a motion by Alderperson Clairborne, the meeting was adjourned at 8:20 p.m.