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HomeMy WebLinkAboutMN-CA-2009-03-01CITY ADMINISTRATION COMMITTEE Regular Meeting March 25, 2009 Members Present: Alderperson Coles, Alderperson Zumoff, Alderperson Rosario, Alderperson Cogan, Alderperson Schuler, Mayor Peterson staff Present: Brian Carman (Stock Room Manager), Donna Este -Green (Asst City Attorney), Brian Wilbur (Fire Chief), Bill Gray (Superintendent of Public Works), Dan Hoffman (City Attorney), Val Saul (Deputy HR Director), Cliff Murphy (Working Supervisor), Roxy Johnston (Watershed Coordinator), Debra Parsons (City Chamberlain), Steve Thayer (Controller), Scott Andrew (Deputy Controller), Schelley Michell -Nunn (HR Director), Denise Malone (HR Executive Assistant) Others Present: Nels Bohn (IURA), 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 Chairperson Coles stated that the Common Council members have been assigned the responsibility of looking over the composition of all City Boards and Committees to see how they can be improved and to see if the discounts that the City allows for City taxes can be extended to Water and Sewer bills for Senior Citizens and people with disabilities. Alderpersons Clairborne, Rosario and Coles have met with the City Chamberlain to begin this discussion. 3. Agenda Review and Amendments Chairperson Coles moved Agenda Item #17 - Attorney's Office after Agenda Item #12 - Controller's Office. City Administration Committee Meeting March 25, 2009 Page 2 4. Approval of Minutes Alderperson Zumoff made a motion to approve the minutes, with corrections, from the January 26, 2009 and February 25, 2009 meetings of the City Administration Committee. Seconded by Alderperson Rosario. Motion carried 5 -0. 5. Statements from the Public. None. 6. Employee Comments Brian Carman, Stock Room Manager and CSEA Administrative Unit President, spoke in support of Agenda Item 18.1 - Human Resources - Adoption and Implementation of CSEA Classification and Compensation Study. Mr. Carman gave a brief history of this, and a previous, compensation study. The findings of both comp studies were nearly identical and concluded that the step salary structures for the City were not consistent with local employers. With this comp study, the CSEA Unions have worked diligently with the HR Department, saw their commitment and felt that some portion of this study would be implemented over the next few years. Mr. Carman asked Common Council to listen to what their experts are saying and to resolve the inequity issues to the benefit of the employees. 7. Common Council Response Chairperson Coles stated that over the years the HR Department has said that if there is not appropriate compensation for employees, the City will continue to lose good qualified people because the wages are so low. 8. Workforce Diversity (WFD) Committee Update. None. 9. Safety Committee Update. None. 10. Communication Committee Update. None. 11. Regular Reports from Departments Reporting to CA - Controller's Office Controller Thayer reported that the current budget of $491,000 is an inadequate budget for his office. After benefits and debt cost, his budget total is $362,000. City Administration Committee Meeting March 25, 2009 Page 3 The Office has five (5) staff members. All, except the Payroll Coordinator, work 40 hours per week. The Payroll Coordinator works 35 hours per week. These employees, with assistance from the Chamberlain's Office, oversee the $60 million overall City budget. The Controller stated that at a minimum, the Payroll Coordinator needs to have her workweek increased to forty (40) hours. The current payroll system has been in place for years and is in need of improvements and changes. The payroll requirements and reporting requirements are increasing on an annual basis. The additional five (5) hours would allow the Office to be proactive in the development and improvement of payroll processes. Other resources the Controller's Office could utilize would be interns to help with the projects not done now on a timely basis. A part -time accounting position is needed to help with on going accounting and reporting functions. With new accounting and auditing requirements, additional training funds are needed. $1,800 was approved in the current budget. To fully and properly maintain and train staff, the Controller's Office would need about $3,500. As a result of lack of funds for staff development, timely reporting of financial reports is suffering. The daily operations take up most of staff time, leaving little time for other tasks. Challenges ahead: In addition to needed resources, there is a City -wide freeze on hiring and procurement. This may continue for another quarter as the economic conditions fluctuate. The Controller included the following updates in his report: Audit (2007): The 2007 audit is near completion and will be put on next month's agenda for approval. Capital Project Fund: The capital project fund is on a manual system. This process is being allocated to the MUNIS system. With this on MUNIS, it will greatly assist the department with creating financial reports on a timely basis. City Procurement Card: Currently, when departments go out for training, they have to get an advanced check or have to use their personal credit card to secure hotel rooms and other training needs. A Request for Proposal (RFP) will go out within the next 2 months for the procurement card with hopes that a credit card will be in place by the end of 2009. City Administration Committee Meeting March 25, 2009 Page 4 GASB 45 Compliance: This is the accounting standard for reporting benefits for retirees and employees. This large liability will be placed on the City's financial books starting in 2008, with on going compliance issues being completed in 2009. State Budget /Stimulus Plan: Questions remain about the State budget and the Stimulus plan and how they will impact the City's financial activity for 2009 and 2010. Financial Picture: The question that remains for our financial picture is will the City have layoffs, salary reductions or caps. With the financial improvements that the City has experienced the last three (3) years, the Controller's Office hopes the City will survive the changes while moving forward into 2010. Considering this, the City is trying to improve the salary base for lower salaried employees. The City needs to maintain, and improve upon the maintenance of, its infrastructure (e.g. sidewalks, street reconstructions, and other overall infrastructure). Overall, the City must come with the lowest and most cost effective impact on the tax base and taxpayers. The Committee thanked Controller Thayer for his report. 12. Controller's Office & City Attorney's Office 1. Review of TCCOG Municipal Cooperative Agreement for the Health Insurance Consortium - Discussion The City Administration Committee discussed their concerns and questions about the Municipal Cooperative Agreement for the Health Insurance Consortium. The major concern of the Committee was the weighted voting. Assistant City Attorney Donna Este -Green explained, and gave an example of, weighted voting. Controller Thayer mentioned reasons why the City should participate, e.g. to make budgeting easier and overall costs better. They Mayor asked if there were questions or concerns about the Agreement that should be shared with TCCOG. Ms. Este -Green stated that more clarification is needed regarding amendments and modification made by this Board. Is this legal? As a municipality, can this be done without going before Common Council? HR Director Michell -Nunn stated that the name of the Administrator should not be in the Agreement since Blue Cross and Blue Shield is named in some of the City union City Administration Committee Meeting March 25, 2009 Page 5 contracts. Ms. Michell -Nunn asked about the procedure where claims have been denied and employees have the option to appeal. Will the Board listed in the Agreement be the internal review process? If so, will the employees understand that their personal health information could be reviewed by someone other than a City representative? Chairperson Coles suggested that this conversation be continued at next month's meeting. She encouraged members to write down and e -mail their questions to her, the Mayor, Assistant City Attorney Este -Green and /or the Controller. 13. City Attorney's Office 1. Authorization to Accept "Settlement Offer" Re__ a�g Frontier Chemical Hazardous Waste Site Moved by Alderperson Cogan. Seconded by Alderperson Zumoff. WHEREAS, it appears that in 1990 the City of Ithaca delivered at least two loads of materials such as waste oil and paint to a treatment, storage and disposal facility in Niagara Falls, NY, operated by the Frontier Chemical Waste Process, Inc. (between 1974 and 1992); and WHEREAS, there were reportedly more than 5,000 contributors of hazardous materials to this site, over its 18 years of operation; and WHEREAS, following the closure of the site, the New York State Department of Environmental Conservation (NYSDEC) determined that there were releases of hazardous substances to the environment, including the soils and groundwater, classified the site as a Class 2 inactive hazardous waste site, and is threatening litigation against the contributors (also known as potentially responsible parties), and WHEREAS, the cost of implementing the remediation measures that the NYSDEC has directed certain potentially responsible parties to implement is currently estimated to be between $15 and $20 million; and City Administration Committee Meeting March 25, 2009 Page 6 WHEREAS, pursuant to the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), all potentially responsible parties could be strictly and retroactively liable for a share of the remediation costs; and WHEREAS, the NYSDEC has indicated informally that it is unlikely that the State would initiate legal action against small contributors such as the City of Ithaca; and WHEREAS, notwithstanding this, any potentially responsible party determined by the State to be liable for remediation costs could take legal action against any other potentially responsible party, for a proportionate sharing of such costs; and WHEREAS, certain of the larger contributors to this site have organized into the 172- member Frontier PRP Group, and, as such, have made a time - limited offer to release any smaller contributor (less than 3,000 gallons) from liability (vis -o -vis the members of the PRP group, only), in exchange for a payment of $4,000; and WHEREAS, over 800 smaller contributors (including other municipalities) have reportedly accepted such an offer; and WHEREAS, it appears that acceptance of this offer by the City is fiscally prudent, as it will reduce future economic risk as well as the possible need to spend additional staff time on this matter, or to engage special counsel to defend against litigation; now therefore be it RESOLVED, That the Mayor be and is hereby authorized to accept the above - described offer of settlement on behalf of the City; and be it further RESOLVED, That the necessary funds - $4,000 - be allocated from Account No. A1930 -5000 (Judgments and Claims). A vote on the resolution resulted as follows: Passed unanimously. City Administration Committee Meeting March 25, 2009 Page 7 14. Department of Public Works 1. Approval of Uncontested 2008 Sidewalk Assessments Moved by Alderperson Zumoff. Seconded by Alderperson Cogan. WHEREAS, notices of defect, public hearings and notices of assessment were provided to property owners related to the installation and repair of their sidewalks in 2008, and WHEREAS, The Board of Public Works has approved the finalization of the attached list of assessments, now, therefore be it RESOLVED, That Common Council directs the City Chamberlain to collect such assessments, and be it further RESOLVED, That these assessment bills shall be payable in accordance with § C- 73. Sidewalks. E. Assessments for Sidewalk Improvements. A vote on the resolution resulted as follows: Passed unanimously. 2. Request to Fund Bridge Systems Engineer Position Moved by Alderperson Schuler. Seconded by Alderperson Cogan. WHEREAS, at its meeting on December 17, 2008, the Board of Public Works recommended the addition of a permanent full time Bridge Systems Engineer, and WHEREAS, the permanent full time position will be funded through Capital Projects which receive matching funding as part of the New York State Intermodal Surface Transportation Efficiency Act and are included in the current five year Transportation Improvement Program (TIP), and WHEREAS, the Vacancy Review Committee reviewed and approved the position of Bridge System Engineer on March 9, 2009; now, therefore be it City Administration Committee Meeting March 25, 2009 Page 8 RESOLVED, That Common Council hereby amends the 2009 Authorized Personnel Roster for the Engineering Office as follows: Add (1) One Full Time Bridge Systems Engineer and be it further RESOLVED, That the position is assigned to the Executive Association at a 2009 Salary Range of $56,284 - $80,993, and be it further RESOLVED, That said roster amendment is contingent on Civil Service approval and funding from existing authorized and funded Capital Projects. After discussion, Alderperson Schuler made a motion to amend the Resolution as follows: Remove from 2nd Whereas: New York State Amend 2nd Resolved to read: That the position be assigned to the Executive Association 2009 Salary Schedule, Grade A, and be it further Seconded by Alderperson Zumoff. Motion carried 5 -0. A vote on the main resolution as amended resulted as follows: Passed unanimously. 15. Fire Department 1. Request to Establish a Capital Project for Training Center Expansion Moved by Alderperson Zumoff. Seconded by Alderperson Schuler. WHEREAS, the Ithaca Fire Department Training Center, at 200 Pier Road, and the mission it serves is critical to the delivery of fire and emergency services within and around the City of Ithaca; and, WHEREAS, the City of Ithaca Fire Department and the County of Tompkins have partnered in the support, operation, and use of the Training Center; and, City Administration Committee Meeting March 25, 2009 Page 9 WHEREAS, the Training Center is utilized by many different agencies, including, but not limited to, the Ithaca Fire Department, other Tompkins County Fire Departments, the Tompkins County administered New York State Field Training Program, various fire departments from neighboring counties, the Ithaca Police Department, the Ithaca /Tompkins Joint SWAT, the New York State Office of Fire Prevention and Control, the City of Ithaca Human Resources Department, and Borg - Warner Automotive, among others; and, WHEREAS, key users of the Training Center have developed a proposal to increase the utility and effectiveness of the Training Center that would add additional classroom, utility space, and an additional lavatory to the existing classroom building; and, WHEREAS, the proposed addition would remain within the bounds of the current Training Center property, as defined by the chain link fence that defines the perimeter; and, WHEREAS, the addition would provide additional enclosed space for use in inclement weather conditions, thus facilitating efficient use of trainee and instructor time and resources; and, WHEREAS, the funds for this addition will be derived entirely from outside sources, with no additional appropriations required from the City of Ithaca; and, WHEREAS, the Ithaca Fire Department and the City of Ithaca will administer the funds and manage the expansion project; now, therefore be it RESOLVED, That Common Council hereby establishes Capital Project #754 in an amount not to exceed $100,000 for the purpose of accepting funds from other sources towards the design, development, and construction of an addition to the classroom building at the Ithaca Fire Department Training Center; and, be it further RESOLVED, That funding for said project shall be derived from contributions from various outside sources, and be it further City Administration Committee Meeting March 25, 2009 Page 10 RESOLVED, No work shall be authorized, nor any expense approved that shall not have sufficient funds allocated in such capital project. A vote on the resolution resulted as follows: Passed unanimously. 16. Clerk's Office 1. Request to Amend 2009 Budget Moved by Alderperson Rosario. Seconded by Alderperson Cogan. WHEREAS, Common Council, as part of the 2009 City Budget, included $18,000 in the Restricted Contingency account for the purposes of funding a public information initiative, and WHEREAS, the Public Information Officer Team (PIOT) is requesting that these funds be released from Restricted Contingency for the purposes of funding one consultant to work on the community newsletter project, and related office supplies to fund this initiative; now, therefore, be it RESOLVED, That Common Council hereby authorizes the City Controller to transfer an amount not to exceed $6,900 from Restricted Contingency Account #A1990 to account # A1316 -5435 to fund one consultant position and related office supply costs to fund this initiative. After discussion, Alderperson Cogan made a motion to amend the Resolved by changing the amount not to exceed from $6,900 to $8,000. Seconded by Alderperson Rosario. Motion carried 5 -0. A vote on the main resolution as amended resulted as follows: Passed unanimously. City Administration Committee Meeting March 25, 2009 Page 11 17. Ithaca Urban Renewal Agency (IURA) 1. MOU for Community Housing Affordability Program and the Community Housing Trust Program of the Housing Fund Moved by Alderperson Rosario. Seconded by Alderperson Cogan. WHEREAS, on July 5, 2007, the Common Council of the City of Ithaca endorsed the Housing Strategy for Tompkins County ("Housing Strategy'), which seeks to increase the supply of housing to meet local needs identified in the Affordable Housing Needs Assessment, prepared for the Tompkins County Planning Department in 2005, and WHEREAS, the Housing Strategy recommends implementation of the following initiatives to produce new housing for lower and middle income households in close proximity to services, jobs and transit: 1. Inclusionary and incentive zoning 2. Community housing trust fund 3. Employer assistance 4. Housing affordability fund, and WHEREAS, on October 6, 2007, Cornell University President David Skorton announced a $10 million, 10 -year, Cornell- Community Housing Initiative to increase workforce housing opportunities, and WHEREAS, on July 2, 2008, the Common Council of the City of Ithaca conceptually supported the Ithaca- Tompkins County - Cornell Housing Collaboration ( "Community Housing Collaborative ") as a guideline for Cornell University and the Tompkins County community to jointly implement the Housing Strategy, and WHEREAS, the Community Housing Collaborative recommended the establishment of housing programs that could produce up to 775 housing units with a total development cost of $169 million, including a housing affordability fund and a housing trust program, and City Administration Committee Meeting March 25, 2009 Page 12 WHEREAS, the Community Housing Collaborative encourages that new housing be located in (1) urban areas or growth nodes served by water & sewer services, public transit, and pedestrian & bicycle networks; and, (2) areas convenient to major employment centers to maximize alternative modes of travel to work and to minimize the negative impacts of commuting through traffic on residential neighborhoods, and WHEREAS, on June 26, 2008, Cornell University announced a $1 million first year financial commitment for the Cornell- Community Housing Initiative, including a $200,000 investment in the Community Housing Affordability Program and Community Housing Trust Program, and WHEREAS, a Memorandum of Understanding ( "MOU "), dated March 10, 2009, has been developed whereby Tompkins County, the City of Ithaca and Cornell University would jointly fund a Community Housing Affordability Program and Community Housing Trust Program, with commitments by Cornell University to contribute $1.2 million over six years, and by City of Ithaca and Tompkins County to each contribute $600,000 over six years, and WHEREAS, the Community Housing Affordability Program is a locally funded and administered program that assists with pre - development costs associated with residential, and mixed -use real estate development projects primarily benefiting low- and moderate - income households, and the Community Housing Trust Program is a program designed to ensure that newly constructed or rehabilitated homes that are made available to low- and moderate - income households remain affordable to future generations of buyers, and WHEREAS, funds committed for the Community Housing Affordability Program and Community Housing Trust Program will be made available to non - profit and for - profit housing entities as loans or grants on an open competitive basis through a Notice of Funding Availability ( "NOFA ") process designed to assist projects consistent with the Housing Strategy and the Community Housing Collaborative, and WHEREAS, the MOU establishes a Policy Oversight Committee made up of three representatives from each signatory, which is responsible for finalizing the NOFA and for the general oversight, administration and monitoring of program funds, and City Administration Committee Meeting March 25, 2009 Page 13 WHEREAS, at its March 18, 2009 meeting the Planning & Economic Development Committee recommended authorizing the Mayor to sign the MOU subject to identification of appropriate funding sources, and WHEREAS, funds required to honor the 6 -year, $100,000 per year funding commitment contained in the MOU will be derived from the Gateway Loan Proceeds deposited with the Ithaca Urban Renewal Agency (IURA) unless an alternative funding source(s) is subsequently approved by the Common Council, and WHEREAS, the IURA administers so- called "Gateway" proceeds on behalf of the City of Ithaca per Common Council resolution of June 5, 2002, which stipulated that the repayments of the "Gateway" loan shall be used by the City to assist low and moderate income housing, and WHEREAS, "Gateway" proceeds originated from the City's sale of land to Eddygate Park Associates to facilitate the Eddygate Park Apartment rental housing project in Collegetown, which sales proceeds were realized by the City in 2002 and subsequently contributed to the IURA for the purpose of providing loan financing to Gateway Plaza Associates, LLC to redevelop the underutilized former Dean warehousing building, now known as Gateway Center, located at 401 E. State Street, Ithaca, NY, and WHEREAS, the "Gateway" fund had a balance of $582,708.82 as of March 18, 2009, and WHEREAS, alternative potential funding sources include (1) remaining bond proceeds from the Neighborhood Housing Initiative program, (2) CDBG Entitlement funding or (3) new federal or state funding awarded to the City of Ithaca for affordable housing; now, therefore, be it RESOLVED, That the Common Council of the City of Ithaca hereby authorizes the Mayor, subject to review by the City Attorney, to execute the MOU, dated March 10, 2009, among the City of Ithaca, Tompkins County and Cornell University to develop, fund, and administer the Community Housing Affordability Program and the Community Housing Trust Program, and be it further City Administration Committee Meeting March 25, 2009 Page 14 RESOLVED, That funds necessary for the first year commitment of $100,000 shall be derived from the following amended 2009 City budget source: Gateway Loan Proceeds in IURA $100,000 (Increase Appropriation Account A8020 -5435) Services Other Governments IURA Increase Revenue Account A8020 -2375: $100,000, and be it further RESOLVED, The funding shall be renewed at a rate of $100,000 per year up to a total of six years, consistent with the terms of the MOU, from the some funding source unless an alternative funding source(s) is approved by Common Council, and be it further RESOLVED, The Mayor is further authorized to accept any revisions to the MOU that do not substantially or materially alter its intent or substance, and be it further RESOLVED, The Common Council finds that the most appropriate locations for new housing units assisted through MOU funds are project sites located within existing urbanized areas of the County, rather than in new growth nodes or other areas of the County, and be it further RESOLVED, The Mayor is hereby authorized to appoint three representatives to the Program Oversight Committee, subject to approval by the Common Council, that will serve as the oversight and administration entity for the Community Housing Affordability Program and the Community Housing Trust Program, and be it further RESOLVED, That the loan or grant of any City of Ithaca program funds provided pursuant to the MOU shall be approved by the Common Council. A vote on the resolution resulted as follows: Passed unanimously. City Administration Committee Meeting March 25, 2009 Page 15 18. Human Resources (HR) Department 1. Adoption and Implementation of CSEA Classification and Compensation Study Deputy HR Director Valerie Saul gave a brief history of the comp study and explained the recommendations to the City Administration Committee members. The total cost to implement the study is $1.5 million over a six (6) year time frame. The HR Department and the CSEA Unions looked at different ways to implement the study and stay within the budgetary amount. The proposal put forth would start September 1, 2009 and would distribute $325,000, which includes fringe benefits, amongst 85% of the CSEA workforce. Once Common Council authorizes the salary increases in 2009, every year it compounds and every year, with the exception of 2010, a phase of the study is implemented. A backup proposal would be to take whatever everyone is supposed to get and give them 25% of that amount, which uses the $325,000. This proposal meets the budget guidelines but does not allow for the implementation of the comp study. The Committee discussed at length the recommendations. The Mayor and Common Council expressed concern about the financial impact of approving the comp study and requested that additional information be provided to them about the comp study (e.g. spreadsheets, comp plan, etc.) The Mayor asked that a meeting be scheduled for her, the HR Director, the Deputy HR Director, the City Controller and Alderperson Coles to discuss the impact of the recommendations on the City and the next step. 2. Director's Report. HR Director Michell -Nunn reported on the following: Vacancy Review Committee (VRC): In 2009 to date, the VRC received 44 requests to fill vacancies. Of the 44 requests, 38 were approved and 6 were placed on hold. In late 2008, 13 vacancy requests were received. Of the 13 requests, 10 were approved and 3 were placed on hold. Workplace Violence Prevention (WVP) Training: Senior Staff has attended the WVP Prevention Training. The workforce will receive the training from April to November. All employees are mandated to attend the training. It is 2.5 hours for supervisors and 1.5 hrs for employees. City Administration Committee Meeting March 25, 2009 Page 16 19. Finance /Controller 1. Controller's Report. Controller Thayer reported on the following: Audits: The Controller's Office continues to be busy with audits. The State auditors are here working on capital planning. The Controller expects good recommendations from the auditors. Financial Activity (2008): The Controller's Office will close the 2008 financial activity at the end of April. The 2008 state report and audit will be completed by the end of August. There will be a positive result of operations, which means revenues will exceed expenditures by about $450,000. Economy: The Consumer Price Index (CPI) is about .15% in 2009 as compared to 4.6% in 2008. Cost is leveling if not decreasing. This is related to the fuel impact on overall construction cost. Sales Tax: To date the sales tax is up about 5% or $24,000 in 2009. The impact of the economy is now starting to be felt. Overtime: The City budgeted $871,000 for 2009. Currently, we are on pace to meet budget. Health Insurance: Health insurance claims for 2008 were almost $1 million. Currently, we are within the budgeted amount of $6,900,000. After the utilization review, one noticeable fact was the drug cost is about 31% of the total cost, when it should be about 15 % -16 %. Cash Flow: The Controller's Office is concerned about the cash flow in 2009. If revenue continues to be reduced and cost continues to increase, the City can expect to have a problem with cash flow. NYS Aid: The City received an additional payment of $36,385 from New York State (NYS) for payments related to 2008. For 2009, the City is still looking for a $45,000 shortfall from the budgeted amount. City Administration Committee Meeting March 25, 2009 Page 17 20. Reports 1. Mayor's Report. The Mayor reported on the following: Senator Schumer's Office: The Mayor met with Amanda Spell icy, Regional Director for US Senator Schumer's Office. The Mayor shared with Ms. Spell icy the Tompkins County stimulus package material that had the City's portion and asked her to look at all of the City's submissions. They talked about various City infrastructure projects and how they could build a regular relationship. Capital Projects: A meeting has been scheduled for next week to discuss capital projects. 2. Sub- Committee Updates. None. 3. Council Members' Announcements. None. 4. Next Month's Meeting: April 29, 2009. 21. Adjournment With no further business and on a motion by Alderperson Cogan, the meeting was adjourned at 9:47 p.m.