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HomeMy WebLinkAboutMN-CA-2010-07-01CITY ADMINISTRATION COMMITTEE Regular Meeting July 28, 2010 Members Present: Alderperson Coles, Alderperson Zumoff, Alderperson Mohlenhoff, Alderperson Rooker, Alderperson Clairborne, Mayor Peterson Staff Present: Marty Schreiber (YB), Karen Friedeborn (YB), Bill Gray (Supt of Public Works), Tim Logue (Traffic Systems Engineer), John Coggin (DPW), Kent Johnson (DPW), Roxy Johnston (DPW), 5uki Tabor (YB), Nathalie Bessou (YB), Dan Hoffman (City Attorney), Leslie Moskowitz (Mgr of OD), Ed Gottlieb (DPW), Steve Thayer (Controller), Scott Andrew (Deputy Controller), 5chelley 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. None. 3. Agenda Review and Amendments Since there were a number of employees in the audience, Chairperson Coles reported that on July 27, 2010, a detailed and productive meeting was held. The meeting included the Mayor, the HR Department, the Controller and three members of the City Administration Committee. This meeting was regarding the CSEA Compensation Study. The results of that meeting would be discussed in Executive Session at the Common Council meeting on August 4, 2010. This statement takes the place of agenda item 15.1 - Human Resources - CSEA Compensation Study. City Administration Committee Meeting July 28, 2010 Page 2 4. Approval of Minutes Alderperson Zumoff made a motion to approve the minutes, with corrections, from the May 26, 2010 and June 30, 2010 meetings of the City Administration Committee. Seconded by Alderperson Rooker. Motion carried 5 -0, 5. Statements from the Public Tracy Vosburgh, Fall Creek resident, and her family are interested in agenda item 14.2 - Attorney's Office - Floral Avenue Property Boundary Issue. She and her family are financially and emotionally invested in this new property and looking forward to moving into their new home. They appreciate the Committee hearing and helping to resolve this issue. 6. Employee Comments Marty Schreiber, Youth Bureau employee, stated that he was here two months ago and asked that the City start moving forward on the compensation study. He returned tonight to thank the Committee for granting his request. Many employees are paying attention, hoping the process will go efficiently and will result in a mutually agreed upon outcome. Roxy Johnston, t)PW employee and CSEA Admin Unit Vice President, thanked the Committee for moving forward with the compensation study. This compensation issue has been a problem for the City for many years. She does appreciate seeing it on the agenda and looks forward to moving ahead on this topic. 7. Common Council Response Chairperson Coles thanked the workforce for the services they deliver to the community; without them this could not happen. Chairperson Coles corrected a previous statement she made about wages or increases in wages contributing to the possibility that if the City's finances do not improve that some employees may be let go. It is the total cost of what the City spends that contributes to that possibility. Mayor Peterson stated that in regards to the CSEA Compensation Plan, as the City budget requests are presented to her on August 1St and the Mayor's budget comes out October 1St answers will be clearer sooner rather then later. City Administration Committee Meeting July 28, 2010 Page 3 8. Workforce Diversity Advisory Committee (WDAC) Update HR Director Michell -Nunn reported that the Department of Public Works staff attended the meeting to update the WDAC on their diversity competency plan. They will return in October with an action plan. 9. Safety Committee Update Chairperson Coles spoke with Kathy Gehring, the Chair of the Safety Committee. They will discuss when the Safety Committee will make a report to the City Administration Committee. 10. Fire Department 1. Request to Amend 2010 Budget for New York State Grant Moved by Alderperson Zumoff. Seconded by Alderperson Clairborne. WHEREAS, the City of Ithaca is the lead recipient of a 2009 New York State Office of Homeland Security Hazardous Materials Grant in the amount of $22,000, and WHEREAS, the City of Ithaca as the lead recipient is responsible for the financial execution and administration of the grant, and WHEREAS, the other grant recipients include Cayuga County, Cortland County and Tioga County, and WHEREAS, the Homeland Security Grant will be used to purchase a Chemical Detection Device on New York State Contract for $20,000, and WHEREAS, the remaining $2,000 will be used for training cost for City of Ithaca employees and employees and or agents of partner agencies, now, therefore be it RESOLVED, That Ithaca Common Council hereby amends the 2010 Authorized City Budget by the amount not to exceed $22,000 to be used for said expenses as outlined by the 2009 New York State Office of Homeland Security Hazardous Materials Grant with amended budgets as follows: City Administration Committee Meeting July 28, 2010 Page 4 Increase Revenue Account: A3410 -3989 State Aid $22,000 Increase Expense Accounts: A3410- 5225 -12150 Other Equipment $20,000 A3410- 5440 -12150 Staff Development $ 2,000 and be it further RESOLVED, That income received from the 2009 New York State Office of Homeland Security Hazardous Materials Grant shall be used to reimburse the City of Ithaca for its expenses, as outlined by the grant. A vote on the main resolution resulted as follows: Passed unanimously. 11. Ithaca Urban Renewal Agency (IURA) 1. Declaration of Lead Agency - Downtown Commons Upper Story Housing Project, Authorize Use of 'Gateway' Proceeds for a Short -Term Loan from the Ithaca Urban Renewal Agency to Plantation Building LLC Moved by Alderperson Rooker. Seconded by Alderperson Clairborne. WHEREAS, the City of Ithaca Common Council is considering authorization of use of 'Gateway' proceeds by the Ithaca Urban Renewal Agency (IURA) to make a short -term loan to Plantation Building LLC for construction phase project expenses to renovate the Plantation Building to implement one of the two projects included in the Downtown Commons Upper Story Housing Project for which the City of Ithaca received a $1.15 million grant award through the Restore NY program, and Whereas, Sunit "Lex" Chutintaranond and Flaminia Cervesi are each 50% owners in Plantation Building LLC, the operating company that will undertake redevelopment of a $2.47 million project to redevelop the vacant Plantation Building located at 130 -132 E. State /MLK Street to create a 4,000 square foot restaurant, 1,200 City Administration Committee Meeting July 28, 2010 Page 5 square feet of commercial office space, six market -rate, one - bedroom apartments and two affordable, one - bedroom apartments, and WHEREAS, the IURA holds 'Gateway' proceeds on behalf of the City of Ithaca, which were derived from the sale of City -owned real estate to Eddygate Park Associates in 1986 to facilitate the Eddygate mixed -use project in Collegetown for which sales proceeds were realized in 2002 and contributed to the IURA to provide loan financing to facilitate the Gateway Plaza redevelopment project at 401 E. State /MLK Street and subsequently repaid in full, and WHEREAS, on November 24, 2009, the proposed renovation of the Plantation Building underwent environmental review during the site plan review process and at that time it was determined that the project will result in no significant impact on the environment, and WHEREAS, the proposed short -term loan to Plantation Building LLC is an Unlisted action under the City Environmental Quality Review Ordinance (CEQRO), and WHEREAS, State Law and Section 176.6 of CEQRO require that a Lead Agency be established for conducting environmental review of proposed actions in accordance with local and state environmental law, and WHEREAS, State Law specifies that for actions governed by local environmental review the Lead Agency shall be that local agency which has primary responsibility for approving and funding or carrying out the action; now, therefore, be it RESOLVED, that the City of Ithaca Common Council does hereby declare itself Lead Agency for the environmental review of the proposed authorization of the use of 'Gateway' proceeds by the IURA to make a short term loan to Plantation Building LLC to implement the Downtown Commons Upper Story Housing project at 130 -132 E. State /MLK Street until Restore NY grant funds are available. A vote on the main resolution resulted as follows: Passed unanimously. City Administration Committee Meeting July 28, 2010 Page 6 2. Environmental Determination - Downtown Commons Upper Story Housina Pro iect, Authorize Use of Gateway Proceeds for a Short -Term Loan from the Ithaca Urban Renewal Agency to Plantation Building LLC Moved by Alderperson Zumoff. Seconded by Alderperson Mohlenhoff. WHEREAS, the City of Ithaca Common Council is considering authorization of use of 'Gateway' proceeds by the Ithaca Urban Renewal Agency (IURA) to make a short -term loan to Plantation Building LLC for construction phase project expenses to renovate the Plantation Building to implement one of the two projects included in the Downtown Commons Upper Story Housing Project for which the City of Ithaca received a $1.15 million grant award through the Restore NY program, and Whereas, Sunit "Lex" Chutintaranond and Flaminia Cervesi are each 50% owners in Plantation Building LLC, the operating company that will undertake redevelopment of a $2.47 million project to redevelop the vacant Plantation Building located at 130 -132 E. State /MLK Street to create a 4,000 square foot restaurant, 1,200 square feet of commercial office space, six market -rate, one - bedroom apartments and two affordable, one - bedroom apartments, and WHEREAS, the IURA holds 'Gateway' proceeds on behalf of the City of Ithaca, which were derived from the sale of City -owned real estate to Eddygate Park Associates in 1986 to facilitate the Eddygate mixed -use project in Collegetown for which sales proceeds were realized in 2002 and contributed to the IURA to provide loan financing to facilitate the Gateway Plaza redevelopment project at 401 E. State /MLK Street and subsequently repaid in full, and WHEREAS, on November 24, 2009, the proposed renovation of the Plantation Building underwent environmental review during the site plan review process and at that time it was determined that the project will result in no significant impact on the environment, and WHEREAS, the proposed action will provide financing to undertake renovation of the Plantation Building in accordance with the site plan approval issued by the City of Ithaca Planning and Development Board on November 24, 2009, and City Administration Committee Meeting July 28, 2010 Page 7 WHEREAS, on August 4, 2010, the City of Ithaca Common Council declared itself Lead Agency for the environmental review of this proposed action, and WHEREAS, the proposed short -term loan to Plantation Building is an Unlisted action under the City Environmental Quality Review Ordinance (CEQRO), which requires environmental review, and WHEREAS, the Short Environmental Assessment Form ( "SEAF ") and supporting information has been provided to the City of Ithaca Conservation Advisory Council for review of the proposed action and no comments have been received to date, and WHEREAS, the City of Ithaca Common Council, acting as Lead Agency for the environmental review, has reviewed and accepted as adequate a Short Environmental Assessment Form, Part 1, submitted by the applicant, and Part 2, prepared by Planning and Development Department staff, and other application materials, now, therefore, be it RESOLVED, that the City of Ithaca Common Council hereby determines that the proposed authorization of use of 'Gateway' proceeds by the IURA to make a short - term loan to Plantation Building LLC to implement the Downtown Commons Upper Story Housing project at 130 -132 E. State /MLK Street will result in no significant impact on the environment and that a Negative Declaration for purposes of Article 8 of the Environmental Conservation Law be filed in accordance with the provisions of Part 617 of the State Environmental Quality Review Act. A vote on the main resolution resulted as follows: Passed unanimously. 3. Downtown Commons Upper Story Housing Project, Authorize Use of 'Gateway' Proceeds for a Short -Term Loan From the Ithaca Urban Renewal Agency to Plantation Buildina LLC Moved by Alderperson Zumoff. Seconded by Alderperson Mohlenhoff. WHEREAS, on June 25, 2010, Sunit "Lex" Chutintaranond, managing member of Plantation Building LLC, requested a short -term bridge loan of $512,000 until City Administration Committee Meeting July 28, 2010 Page 8 Restore NY grant funds can be accessed from the Empire State Development Corporation (ESD) for the comprehensive rehabilitation project of the Plantation Building located at 130 -132 E. State /MLK Street, and WHEREAS, the amount of loan assistance requested is equal to approximately three months of project construction expenditures, and WHEREAS, Lex Chutintaranond and Flaminia Cervesi are each 50% owners in ItalThai LLC, the owner of the Plantations Building, and Lex Chutintaranond is the sole owner of Plantation Building LLC, the operating company that will undertake the redevelopment project and syndicate historic tax credits, and WHEREAS, the City of Ithaca was awarded $900,000 in Restore NY grant funds to assist in the $2.47 million redevelopment of the vacant Plantation Building to create a 4,000 5F restaurant, 1,200 5F of commercial office space, six market - rate, one - bedroom apartments and two affordable one - bedroom apartments, and WHEREAS, the City authorized the Ithaca Urban Renewal Agency (IURA) to administer and implement the Restore NY grant, and WHEREAS, Restore NY grant funds can be accessed via a Grant Disbursement Agreement (GDA) per the following process: A. Submit proof of project readiness to ESD, including proof of completion of environmental review, state historic preservation office review and site plan review; a final project budget, including an independent construction estimate; and documentation that all project funding is committed, including bank financing, B. ESD Board approval, C. Public Authorities Control Board (PACB) approval, D. Completion of ESD public hearing, E. Issuance of a GDA, and WHEREAS, during the three month impasse to adopt the 2010 -2011 New York State budget, no GDAs for Restore NY projects were approved by the PACB, and City Administration Committee Meeting July 28, 2010 Page 9 WHEREAS, with adoption of a significant portion of the NYS 2010 -2011 budget in early July, the PACB has resumed approval of new GE)As for Restore NY projects, and WHEREAS, the Plantation Building Restore NY project is scheduled for ESE) Board review in September 2010, which is expected to result in issuance of a GDA in October 2010, and WHEREAS, Plantation Building LLC has executed a construction contract with a guaranteed maximum price that is on- budget, and WHEREAS, the interior demolition, site preparation and asbestos removal has been completed, leaving the structure in fragile condition and developer equity exhausted, and WHEREAS, installation of an elevator, a new HVAC system and replacement of the roof all need to be completed prior to cold weather to prepare the building for winter and avoid increased project costs, and WHEREAS, shutting down the project to wait for access to Restore NY funds in late October imperils project feasibility, and WHEREAS, use of CDBG funds for the requested loan is problematic because use of CDBG funds for construction activities requires compliance with the Davis - Bacon Act which would require re- bidding the construction project, and WHEREAS, the IURA holds "Gateway" proceeds on behalf of the City of Ithaca, which were derived from the sale of City -owned real estate to Eddygate Park Associates in 1986 to facilitate the Eddygate Park Apartment mixed - income 64- unit rental housing project in Collegetown for which sales proceeds were realized in 2002, and WHEREAS, in 2002 "Gateway" proceeds were loaned to Gateway Plaza Associates, LLC to facilitate the Gateway Plaza project located at 401 E. State /MLK Street with repayments earmarked by the City of Ithaca Common Council for affordable housing activities, and City Administration Committee Meeting July 28, 2010 Page 10 WHEREAS, the Gateway Plaza loan was fully repaid in 2007, and Whereas, the balance of "Gateway" proceeds is approximately $595,600 as of June 30, 2010, of which $100,000 has been earmarked as a contribution to the Housing Fund, leaving an unobligated balance of $495,600, and WHEREAS, the Plantations Building project includes affordable housing, and WHEREAS, use of "Gateway" proceeds requires approval from the City of Ithaca Common Council, and WHEREAS, the IURA conducted an underwriting of the loan application and recommends approval of a $490,000 short -term loan subject to approval by the City of Ithaca Common Council, and WHEREAS, the proposed IURA loan will be repaid from Restore NY grant funds disbursed by the Empire State Development Corporation to the City of Ithaca that are earmarked for the Plantation Building project and is further secured through mortgages and personal and corporate financial guarantees provided by the borrower; and WHEREAS, the Ithaca Urban Renewal Agency recommends City of Ithaca Common Council approval of the use of 'Gateway' proceeds to fund this bridge loan; now, therefore, be it RESOLVED, that the Common Council for the City of Ithaca hereby authorizes the use of $490,000 of 'Gateway' proceeds by the IURA to make a short -term loan to Plantation Building LLC to implement the Downtown Commons Upper Story Housing Project. Chairperson Coles made a motion to remove the last Whereas and replace it with: WHEREAS, on July 22, subject to Common Council's approval, the IURA approved the loan of the "Gateway" funds for this project and further recommended that the City of Ithaca Common Council also approve the use of the "Gateway" proceeds to fund this bridge loan; now, therefore, be it. Seconded by Alderperson Rooker. Motion carried 5 -0. City Administration Committee Meeting July 28, 2010 Page 11 A vote on the main resolution as amended resulted as follows: Passed unanimously. 12. Common Council 1. Extension of the Suspension of the City of Ithaca's Apprenticeship Policy Moved by Alderperson Clairborne. Seconded by Alderperson Zumoff. WHEREAS, in 2001, the New York State Legislature adopted a new law (Labor Law, Section 816 -b) that gives municipalities the option of requiring contractors and subcontractors for a construction contract (to which the municipality is a direct or indirect party) to have apprenticeship agreements (providing for the approved training and placement of apprentices); and WHEREAS, in January 2005 Common Council exercised its authority under said statute, and adopted a resolution which required that all City construction contracts for more than $500,000 "must include contractors that participate in New York State certified apprenticeship programs," that this requirement is to be imposed upon "all bidders and all subcontractors under the bidder," and is to apply to "each apprenticecible trade or occupation represented in their workforce" and that all bidders and their subcontractors "must abide by the apprentice to journeyman ratio for each trade prescribed therein," but that 25% of the monetary value of the general contract may be exempted from the apprenticeship requirement "to permit the use of small or specialty subcontractors who would otherwise be excluded ;" and WHEREAS, by May 2009, the Mayor and the Council had become aware of certain problems and concerns associated with the implementation of the City's Apprenticeship Policy; and WHEREAS, as a result of these concerns, Common Council decided in December, 2009, to suspend the Apprenticeship Policy, until August 5, 2010, and to ask for a "working group" (including staff and Council members) appointed to research the matter to make a recommendation on the subject to Common Council before August 5, 2010; and City Administration Committee Meeting July 28, 2010 Page 12 WHEREAS, this working group has met regularly over the past year, and has heard directly from union representatives, affected contractors and others; and WHEREAS, at this time, the working group has not completed its examination of and deliberation about the issue of the Apprenticeship Policy (or possible alternative approaches to the goal of enhancing employment readiness and opportunities for City residents, particularly those who are young and /or disadvantaged); now therefore be it RESOLVED, That the suspension of the "Apprenticeship Policy" that was established by resolution of the Common Council of the City of Ithaca, on January 5, 2005, be and hereby is extended until October 7, 2010; and be it further RESOLVED, That the "working group" appointed to study this matter is requested to submit its report and any recommendations, to the Mayor and the Chair of the City Administration Committee, by no later than September 15, 2010. Alderperson Clairborne made a motion to change the dates in the 1St and 2nd Resolved as follows: In the first Resolved change October 7, 2010 to December 2, 2010. In the second Resolved change September 15, 2010 to November 10, 2010. Seconded by Alderperson Zumoff. Motion carried 5 -0. A vote on the main resolution as amended resulted as follows: Passed unanimously. 13. Department of Public Works 1. Request to Approve Funding Match for TIGER II Grant Application Moved by Alderperson Mohlenhoff. Seconded by Alderperson Rooker. WHEREAS, the United States Department of Transportation (USDOT) has announced the availability of funds in the TIGER II (Transportation Investment Generating Economic Recovery) Discretionary Grants (TIGER II) program, which notice was published in the Federal Register on June 1, 2010, and City Administration Committee Meeting July 28, 2010 Page 13 WHEREAS, Common Council is interested in applying for a TIGER II grant so as to make a large investment in the transportation system in the central business district in order to maintain a state of good repair, to make the downtown a more livable and sustainable environment, to strengthen the City of Ithaca's position as a hub for the county and region, and to encourage and support economic activity in the City, and WHEREAS, staff from the Office of the City Engineer and the Department of Planning and Development have begun scoping a grant eligible project to include, but not be limited to, the following components: • Rehabilitation of the Commons Pedestrian Street. • Partnering with Tompkins Consolidated Area Transit (TCAT) to procure and install a Real Time Passenger Information System for TCAT busses and the TCAT bus stops at Green St. and Seneca St. • Partnering with NYSDOT to reconstruct Seneca Street and portions of Green Street (between East State /MLK Street and Route 13) with the ultimate intention of taking ownership of these streets in exchange for the State taking ownership of the Elmira Road section of Route 13 that the City currently owns • Partnering with Cornell University to rehabilitate the Cascadilla Creek Gorge Trail between Linn Street and College Avenue so that it can be reopened to the public • Accessibility improvements in the downtown, particularly sidewalk curb ramp improvements • Installation of bicycle racks, bicycle lockers, wayfinding signage, and electric vehicle plug -in stations in the downtown, now, therefore be it RESOLVED, That the Mayor of the City of Ithaca, or her designee, is hereby authorized to submit a TIGER II application for funding to the United States Department of Transportation in accordance with the provisions of the Notice of Funds Available, in a amount not to exceed $16,700,000, and upon approval of said request to enter into and execute a project agreement with USDOT, or its designee, for such financial assistance to the City of Ithaca for design, right -of- way acquisition, construction and construction inspection of the TIGER II application as submitted by the Mayor and approved by USDOT, and be it further City Administration Committee Meeting July 28, 2010 Page 14 RESOLVED, That Common Council hereby makes a commitment of funds, contingent upon an award of funds from the TIGER II program and environmental review, in an amount not to exceed 20% of the total project costs, i.e., in an amount not to exceed $3,340,000, which funds will be derived from serial bonds. A vote on the main resolution resulted as follows: Passed unanimously. 14. Attorney's Office 1. Request for Additional Funding for Special Counsel Moved by Alderperson Clairborne. Seconded by Alderperson Mohlenhoff. WHEREAS, in May 2010, Common Council allocated an additional amount to the 2010 budget for the City Attorney's office, namely $35,000, for Contractual Services, to address the unanticipated need to retain special counsel to represent the City in certain labor and employment law matters, due to the departure, in January 2010, of the Assistant City Attorney who handled such matters; and WHEREAS, the process of filling the vacant Assistant City Attorney position has taken at least a month longer than anticipated, and the cost of special counsel to handle the afore - mentioned labor and employment cases is expected to be approximately $25,000 more than was projected as of May; and WHEREAS, in late May 2010, a lawsuit against the City (alleging discrimination in employment and seeking $17 million in damages) was commenced in federal court, regarding which the City's insurance carrier has, to date and unexpectedly, refused to provide a defense or coverage for liability; and WHEREAS, as a result, the City has retained special counsel to provide such a defense, pending resolution of the dispute with the carrier as to coverage; and WHEREAS, the cost of such defense is anticipated to be at least $40,000 for 2010; now therefore be it City Administration Committee Meeting July 28, 2010 Page 15 RESOLVED, That Common Council hereby approves an additional allocation not to exceed $50,000 for contractual services in the Law Department budget for 2010 (Account A1420- 5435), and directs that an amount not to exceed $32,000 be transferred from Account A1910 -5000 (Undistributed Insurance) and an amount not to exceed $18,000 be transferred from Account A1930 -5000 (Judgments and Claims). A vote on the main resolution resulted as follows: Passed unanimously. 2. Floral Avenue Property Boundary Issue City Attorney Dan Hoffman explained the Floral Avenue Property Boundary issue. The attorney for a couple that owns property in the City on Floral Avenue contacted Mr. Hoffman about property the couple acquired that consists of between 2.1 and 2.5 acres. The property is located between Floral Avenue and the Flood Control Channel and was acquired in 1989 from Rueben Weiner. The City owns vacant land immediately to the north. The couple is interest in selling some part of this land but found, when a new survey was conducted, an apparent error in the survey that had been prepared for the 1989 seller by Howard Schleider. It appears that Mr. Schleider showed the north line of the property to be conveyed to the current (private) owner as being about 107 feet further north than it should have been. The apparent, correct boundary line runs through the midsection of Lot 1 (and through the middle of the house the current owners have constructed there). Somewhat more than half of the current Lot 1 (about a third of an acre) may have been City property when it was deeded to others by Mr. Weiner in 1989. The current owners are not to blame for this problem. They relied upon a map from a licensed surveyor (hired by the seller). The current owners have been paying taxes on the entire lot for the past 20 years. Currently, the assessed value of the land in Lot 1 is $33,000. If two thirds of Lot 1 is City- owned, the value of that part could be $22,000. For 2009, City taxes attributed to that portion would have been $270. Adding county and school taxes paid on that portion, the total amount is probably over $1,000 per year, at current rates. City Administration Committee Meeting July 28, 2010 Page 16 The attorney for the current owners proposed that the City enter into a "boundary line agreement" with her client. There is some concern as to whether the City's entering into such agreement could be seen to constitute a gift, which of course municipalities are not allowed to make, per the State Constitution. Mr. Hoffman, without further research, does not have any solid proof that the City has a stronger claim to the northerly portion of Lot 1 than the 1989 buyers do. The options the City could pursue include: 1. Entering into the proposed boundary agreement (at no charge to either party); 2. Offering to enter into a boundary line agreement, but locating the boundary further to the south (i.e. splitting what is now the northerly side yard of the house on Lot 1, now 66 feet wide, in a "compromise" solution). 3. Insisting upon payment of fair market value for the land in question (which would have to be calculated by an appraiser, based on the 1989 conditions, perhaps with interest added since then, and perhaps with a credit for taxes paid in error since then). 4. Trying to pursue relief against the 1989 surveyor or sellers. The City Attorney brought this issue to the City Administration Committee because it involves the potential conveyance or surrender of property rights by the City and only Common Council has the authority to approve such actions. The Committee discussed this item. After discussion, Alderperson Mohlenhoff made a motion to go into Executive Session to get the advice of counsel. Seconded by Alderperson Clairborne. Motion carried 5 -0. Alderperson Clairborne made a motion to come out of Executive Session. Seconded by Alderperson Zumoff. Motion carried 5 -0. Chairperson Coles reported that no action was taken in Executive Session and stated that the City Attorney will continue to work with the property owners to resolve this issue. City Administration Committee Meeting July 28, 2010 Page 17 15. Human Resources (HR) Department 1. CSEA Compensation Study. Chairperson Coles made a statement at the beginning of the meeting regarding this item. Mayor Peterson reported that Ed Gottlieb, DPW employee, came after the employee comments and wanted to speak on the CSEA Compensation Study. Mr. Gottlieb was hopeful about the progress being made and the direction of the compensation study. 2. Director's Report. HR Director Michell -Nunn reported on the following: HR Report: The HR Director distributed the HR Report and highlighted the workers' comp information. A row was added that shows slightly different numbers. The reason for this is that later in the following years there are expenses that are actually incurred or reduced and so an adjustment takes place. What you see in the added row are those adjustments. PELRA Conference: The HR Director attended the NY5 PELRA Conference last week. She will make a report to the Mayor and Senior Staff on information that pertains to them. Recognition Award /Years of Service Award: Even though there will be no picnic this year, employees will still receive an award for their years of service. Each department will have its own ceremony to recognize the employees in its department. Departments in City Hall will come together to recognize the employees in City Hall. The Mayor will still participate in the award ceremony. Departments are encouraged to schedule their ceremony in conjunction with the Mayor's schedule. 16. Finance /Controller 1. Approval of 2008 Single Audit Report Moved by Alderperson Zumoff. Seconded by Alderperson Mohlenhoff. City Administration Committee Meeting July 28, 2010 Page 18 RESOLVED, That the Independent Auditor's Report for the period of January 1, 2008 through December 31, 2008 prepared by the accounting firm of Ciaschi, Dietershagen, Little and Mickelson & Company, LLP be accepted to comply with all the City's applicable Governmental Accounting Standards Board (GASB) Statement 34 and other related audit and single audit requirements. A vote on the main resolution resulted as follows: Passed unanimously. 2. Authorization to Contribute to the Reserves of the Greater Tompkins County Municipal Health Insurance Consortium Moved by Alderperson Rooker. Seconded by Alderperson Clairborne. WHEREAS, the City of Ithaca shall join the Greater Tompkins County Municipal Health Insurance Consortium for the purpose of providing employee health insurance and prescription drug coverage, and WHEREAS, the Consortium, as required by the New York State Insurance Department, must establish sufficient financial reserves to begin working as a consortium, now, therefore be it RESOLVED, that the City of Ithaca shall contribute the amount listed below as Estimated Initial Capitalization Funds: City Administration Committee Meeting July 28, 2010 Page 19 Explanation: Four municipalities - the Towns of Ithaca, Caroline, Danby and Dryden, are able to contribute a greater amount in reserve than what is owed for their municipal shares. It is anticipated that by the year 2013, the four municipalities will be "paid back" with 3% interest by the Consortium. Reserves Due by the County and City shall be paid in 2012. and be it further RESOLVED, That the City Controller is authorized to make payment immediately to the Consortium. A vote on the main resolution resulted as follows: Passed unanimously. Percent of Estimated Total Reserves 2010 Premium Total Initial PremiumCapitalization Reserves Due County 13,351,312 54.55% 500,000 667,566 167,566 City of Ithaca 8,558,874 34.97% 300,000 427,944 127,944 Town of Ithaca 888,082 3.63% 137,033 44,404 - 92,629 Town of Caroline 122,633 0.50% 37,000 6,132 - 30,868 Town of Danby 81,161 0.33% 62,000 4,058 - 57,942 Town of Dryden 459,233 1.88% 137,032 22,962 - 114,070 Town of Enfield 50,400 0.21% 2,520 2,520 0 Town of Groton 126,095 0.52% 6,305 6,305 0 Town of Ulysses 113,175 0.46% 5,659 5,659 0 Village of Cayuga Heights 360,799 1.47% 18,040 18,040 0 Village of Dryden 121,349 0.50% 6,067 6,067 0 Village of Groton 150,900 0.62% 7,545 7,545 0 Village of Trumansburg 90,696 0.37% 4,535 4,535 0 24,474,709 100.00% 1,223,736 1,223,735 0 Explanation: Four municipalities - the Towns of Ithaca, Caroline, Danby and Dryden, are able to contribute a greater amount in reserve than what is owed for their municipal shares. It is anticipated that by the year 2013, the four municipalities will be "paid back" with 3% interest by the Consortium. Reserves Due by the County and City shall be paid in 2012. and be it further RESOLVED, That the City Controller is authorized to make payment immediately to the Consortium. A vote on the main resolution resulted as follows: Passed unanimously. City Administration Committee Meeting July 28, 2010 Page 20 3. Authorization to Enter into an Agreement with the Greater Tompkins Cou Municipal Health Insurance Consortium Moved by Alderperson Rooker. Seconded by Alderperson Zumoff. WHEREAS, the Tompkins County Council of Governments ( TCCOG) is comprised of all the municipalities in Tompkins County, and WHEREAS, the City of Ithaca is a member of the Tompkins County Council of Governments ( TCCOG), and WHEREAS, in 2007 the County, on behalf of TCCOG accepted an incentive grant award under the New York State Shared Municipal Services Program to assist the municipalities in Tompkins County to create a local municipal health care consortium, and WHEREAS, the Greater Tompkins County Municipal Health Insurance Consortium will develop health benefits coverage for all participating municipalities with the intent to provide a net savings to the taxpayers of Tompkins County, a goal the City of Ithaca supports, and WHEREAS, health care costs for Tompkins County and other local governments have been increasing each year at rates much higher than inflation, a problem which can be addressed by pooling our buying power, and WHEREAS, Council gave authorization for approval of the inter - municipal agreement at its meeting on April 7, 2010, but due to delays in the approval of the consortium, the agreement was never signed, and WHEREAS, some recent minor changes were necessary to the inter - municipal agreement to satisfy the New York State Insurance Department, and WHEREAS, TCCOG encourages the signing of the revised inter - municipal agreement by TCCOG members, now, therefore be it RESOLVED, That subject to the approval of the City Attorney, Common Council hereby authorizes the Mayor to execute the inter - municipal agreement effective City Administration Committee Meeting July 28, 2010 Page 21 October 1, 2010 with the Greater Tompkins County Health Insurance Consortium for the New York State Shared Municipal Services Program. A vote on the main resolution resulted as follows: Passed unanimously. 4. NYS Retirement Incentive Controller Thayer stated that an early retirement incentive program was passed as part of the State budget. This incentive has been offered through the State to local municipalities. There are two parts to the incentive program, Part A and Part B. The programs are not available to members of the Police and Fire retirement system. Part A is a targeted program. The City must demonstrate a 50% savings over a two year period. The City would target positions and then determine if there would be a 50% savings over a two year period. To do this, the City would combine the 2010 salary and the estimated 2011 salary of the employee that would be leaving and take 50% of that to determine the required savings that must be demonstrated. In addition, the employee must be 50 years or older on the effective retirement date with ten years of credited service or the employee must be 55 years of age on the effective date of retirement with 5 years of credited service. If the employee is less than 62 years of age, there would be a significant benefit reduction to that employee's pension. Part A also provides an additional one month of service credit for each year of credited service to a total of three years service credit. Part B of the incentive is not targeted. It is open to all Tier 2, 3 and 4 members of the City workforce unless deemed critical by the City for the maintenance of public health and safety. There is no benefit reduction for those employees that meet the age 55 with 25 years of credited service. To participate in either program, the City would have to opt into the program. There would be an open period between 30 and 90 days with a conclusion date by the end of 2010. City Administration Committee Meeting July 28, 2010 Page 22 The Controller has looked at and calculated relevant numbers for some employees who were interested in Part A. Unless the City left the positions vacant for a period of time the savings would not be met. Mr. Thayer stated that at this time these incentives are too expensive for the City. The economic situation is very uncertain and pension costs are rising dramatically. The City saw over $1 million increase in pension cost in one year from 2009 to 2010 and will experience additional increases from 30 % -50% for 2011 and additional increases in 2012. Controller Thayer stated that at this time he would not recommend that the City opt into either of the retirement incentive plans. Should there be some employees who would be interested in and the City could afford the program, the Controller will notify the Mayor and a special committee meeting may need to be scheduled. 5 Controller's Report. Controller Thayer reported on the following: Budget (2011): 2011 budget development is well on its way with department's budgets being due August 2nd Capital Project Review: The Capital Project Committee has been working through the project requests and hopes to have the final list at the next meeting. Budget Concerns (2011): The budget concerns for 2011 are the increasing expenses for labor, pension, and health insurance and leveling or reduced revenue sources and building permits. With sales tax remaining uncertain and taxable assessments lowering more than they have been in several years development of a 2011 budget will be challenging. Final Taxable Assessment: The assessments for tax year 2011 have been finalized. It shows that the assessment base is going to go up .75 %. If the tax rate remains the same as it currently is in 2010, the City would have an additional $136,000 in property tax revenue. This will have an impact as budgets are developed for 2011. The exempt portion of the overall assessment is 61.11 %, which is slightly lower than it was in 2010 of 61.31 %. City Administration Committee Meeting July 28, 2010 Page 23 Sales Tax (2010): After several months of encouraging collections, the sales tax for the last two payments were down 38% and 24% respectively. The most recent quarter collections were down about 1.3% as compared to the same quarter in 2009. Overall the sales tax collections are up 3.95% over 2009 collections. The last quarter saw a negative adjustment of $27,000 through the audit of NYS. Bond Notes: The one year bond notes were sold this week at a rate of 1.23 %. 17. Reports 1. Mayor's Report. None. 2. Sub- Committee Updates. None. 3. Council Members' Announcements. None. 4. Next Month's Meeting: August 25, 2010. 18. Adjournment With no further business and on a motion by Alderperson Clairborne, the meeting was adjourned at 9:41 p.m.