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HomeMy WebLinkAboutMN-CA-2012-03-01CITY ADMINISTRATION COMMITTEE Regular Meeting March 28, 2012 Members Present: Alderperson Brock, Alderperson Fleming, Alderperson Kerslick, Alderperson Clairborne, Mayor Myrick Members Excused: Alderperson Proulx Council Members Present: Alderperson Dotson Staff Present: Andy Olmetti (Employee Health & Safety Coordinator), Ari Lavine (City Attorney), Debra Parsons (City Chamberlain), Tom West (Assistant City Engineer), Steve Thayer (Controller), Scott Andrew (Deputy Controller), Schelley Michell -Nunn (HR Director), Denise Malone (HR Executive Assistant) Others Present: Nels Bohn (IURA Executive Director), Leslie Spurgin (Ciaschi, Dietershagen, Little and Mickelson & Company), Members of the Public, Members of the Media Chairperson Clairborne called the meeting to order at 6:05 p.m. 1. Chairperson Greeting & Opening Statement Chairperson Clairborne welcomed everyone to the meeting and explained the evacuation procedures. 2. Announcements. None. 3. Agenda Review and Amendments Chairperson Clairborne made the following changes to the agenda: • Moved Item 15.1 — Controller's Office - Approval of 2010 Single Audit to Item 10.1 • Moved Item 13.1 — IURA /Planning and Development - Sale of Surplus Property to Item 13.1 4. Approval of Minutes Alderperson Kerslick made a motion to approve the minutes, with corrections, from the February 29, 2012 meeting of the City Administration Committee. Seconded by Alderperson Fleming. Motion carried 4 -0. 5. Statements from the Public Tom Hanna, of Ithaca and former Alderperson, thanked the Committee for their service. Mr. Hanna spoke about the Golf Course, Redistricting, the City of Ithaca's Comprehensive Plan, the challenges to the City's Budget and Charter changes. City Administration Committee Meeting March 28, 2012 Page 2 6. Employee Comments. None. 7. Common Council Response Alderperson Brock and Chairperson Clairborne thanked Mr. Hanna for his comments and commitment to the City and its issues. Chairperson Clairborne reported on the following topics: Women's History Mini Museum: The 2nd Women's History Mini Museum will be held at GIAC on Thursday— March 29, 2012, from 4:00 p.m. to 6:00 p.m. in the GIAC Gym. It is free and open to the public. Employee Forum: The next Employee Budget Forum will be at the Youth Bureau on Friday — March 30, 2012, from 11:00 a.m. to 12:30 p.m. Common Council members are encouraged to attend the forum to hear the reports, meet the employees and hear their dedication. TrMon Martin March: There was a march for Trayvon Martin at DeWitt Park on Tuesday — March 27, 2012. This was put together by Aidan SeTlock, who is a constituent of the 1sT Ward. This was a local observance to what is happening in Florida. 8. Workforce Diversity Advisory Committee (WDAC) Update The WDAC met and discussed the following topics: • Climate Survey: The City had a climate survey completed 10 years ago. The WDAC suggested that another climate survey be completed and that feedback be given to employees on what has happened since the first survey; • Cornell's Diversi . Efforts: Lynette Chappell - Williams updated the WRAC on Comell's new diversity initiative; • Redistricting: The Committee talked about the work being done around redistricting and encouraged the members to attend these meetings and to bring their concerns around redistricting to Common Council or to the Redistricting Sub - Committee; • Diversity Report Card /Audit: The WDAC desires to have a diversity report card for the City. The HR Department is working with Ithaca College students, who will research and gather information about diversity report cards and diversity audits. 9. Safety Committee/Workplace Violence Prevention Report Employee Health and Safety Coordinator Andy Olmetti distributed information about, and gave an overview of, the Workplace Violence Prevention program. 10. Finance /Controller's Office Approval of 2010 Single Audit City Administration Committee Meeting March 28, 2012 Page 3 Moved by Alderperson Brock. Seconded by Alderperson Kerslick. RESOLVED, That the Independent Auditor's Report for the period January 1, 2010, through December 31, 2010, 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 resolution resulted as follows: Passed unanimously. 11. Common Council 1. Overview of 2013 Budget Last year, after being appointed as Chair of the City Administration Committee, Chairperson Clairborne included this item on the agenda. The reason for adding this item to the agenda was to ensure that the Committee was kept up to date regarding the budget. The report for this agenda item will be set by priorities identified by the Mayor, the City Administration Committee and the Controller. Agenda topics or budget questions can be forwarded to Chairperson Clairborne. Chairperson Clairborne asked Controller Thayer to give an update on the 2013 budget. Mr. Thayer talked about the State budget and its impact on the City if passed. The City is in a difficult financial position. The City's revenues are not keeping up with the expenses. As the 2013 activities are being estimated, the City is faced with, roughly, a $3,000,000 budget gap at this point. This would be the worst case scenario. By the time more details are received about the revenues and expenses in building the budget, this number could come down. Controller Thayer stated that he gave an update on the 2013 budget as part of the Employee Forum. The slides from his presentation were e- mailed to Common Council. Mr. Thayer encouraged the Committee to look at the slides and to attend the upcoming Employee Forums. Mr. Thayer gave an update on the following items: Revenues: CHIP (Consolidated Highway IMprovement Program): This is the funding for street and road construction. The State funding will remain the same, which means $350,000 for the City. Pension: The pension cost is a large expense for the City. With the creation of Tier 6 by the State, municipalities will not see any savings from this change for a couple of years. Youth Programs: The City is looking at some reductions in State Aid for the youth programs. The City will not receive the details of this reduction until the New York State budget has been approved. City Administration Committee Meeting March 28, 2012 Page 4 Property Tax Cap: The 2% property tax cap, when adjusted, will be greater than 2 %. For 2013, it will be important for the City to keep within the property tax cap. Property: Even though over sixty percent (60 %) of the properties in the City are tax exempt, property tax is a large revenue for the City. The City will receive its new tax assessment on July 1St. This will give the City more information to create a budget for 2013 tax rate. Sales Tax Revenue: Sales tax is another large revenue for the City. The City will look for a 2% or 2' /z% increase in sales tax for 2013. Building Permit Revenue: Some projects from private developments are starting to be funded. With these new developments, property tax, assessments and building permit revenue will increase over time. Expenses: Pension: Pension cost will increase significantly in 2013. The City expects this cost to increase beyond 2013, but not as much. Health Insurance: Health insurance cost continues to increase. In 2013, it will increase about 5% to 10 %. Debt Load: The debt load continues to be high. The market is good for interest rates, which is keeping the City's interest cost lower. Fuel Prices /Labor Cost: Fuel prices and labor cost continue to increase. Employee Forums: There have been forums to communicate to employees where the City stands financially. The City is asking cooperation/support from the unions and employees in trying to find cost saving measures and revenue enhancements, wherever possible. After the employee budget forums, the City will schedule public budget forums in the community. Economic Development: The City is looking at selling City properties to bring a boost to the revenue source. 12. Attorney's Office Amendment to Personnel Roster Moved by Alderperson Kerslick. Seconded by Alderperson Brock. WHEREAS, the position of Assistant City Attorney had long been a full -time position until January 2011, and City Administration Committee Meeting March 28, 2012 Page 5 WHEREAS, at the request of a former Assistant City Attorney, the City reduced her position to half -time in January 2011, and WHEREAS, the workload of the City Attorney's Office is such that the City was thereafter required to hire a temporary, half -time Associate City Attorney to supplement the half -time Assistant City Attorney's work, and WHEREAS, the same employee now serves both in the role of half -time Assistant City Attorney and of half -time temporary Associate City Attorney, and WHEREAS, the temporary position of half -time Associate City Attorney will expire on April 3, 2012, and WHEREAS, the City Attorney's Office can best function if, upon the April 3 expiration of the temporary, half -time Associate City Attorney position, the half -time Assistant City Attorney position that does not serve as the City Prosecutor is increased to a full -time position, and WHEREAS, this increase can be achieved for the remainder of 2012 within the existing 2012 authorized Attorney budget and prior year encumbrances; now, therefore, be it RESOLVED, That the Personnel Roster of the City Attorney's Office be amended as follows: Add: One (1) Full -time 40 hour Assistant City Attorney Position Delete: One (1) Half -Time Associate City Attorney (Temporary) and be it further RESOLVED, That said roster amendment will be effective April 4, 2012, and be it further RESOLVED, That the position of City Attorney, the existing full -time position of Assistant City Attorney, and the existing half -time position of Assistant City Attorney that serves as City Prosecutor shall remain unchanged, and be it further RESOLVED, That funds necessary for this roster amendment shall be derived within the existing 2012 authorized Attorney budget and prior year encumbrances. A vote on the resolution resulted as follows: Passed unanimously. 13. Chamberlain's Office Amendment to 2012 Tax Roll Moved by Alderperson Brock. Seconded by Alderperson Kerslick. City Administration Committee Meeting March 28, 2012 Page 6 WHEREAS, pursuant to Section 554 of the Real Property Tax Law, the Director of Assessment has investigated an application for the correction of an error in essential fact filed by the owners of 315 Elm Street, tax map number 77. -1 -9 and WHEREAS, the investigation revealed that an error in reporting of certain income resulted in an error in an aged exemption; now therefore, be it RESOLVED, That the 2012 Tax Roll for the City of Ithaca be amended to reduce the 2012 City of Ithaca taxes on the parcel identified as map number 77.4-9 by $56.89, and be it further RESOLVED, That the City Chamberlain is authorized and directed to make the appropriate refund and changes. A vote on the resolution resulted as follows: Passed unanimously. 14. IURA/Planning and Development Sale of Surplus Property (Discussion) City Attorney Ari Lavine, Assistant City Engineer Tom West and IURA Executive Director Nels Bohn joined the Committee for this discussion. Chairperson Clairborne stated that the agenda packet included information regarding the three properties for sale (213 -215 W. Spencer Street - #93. -7 -3 & #93.- 3 -5.1; 321 Elmira Road - #122. -2 -1; and Cherry Street Extension - #100.- 2 -1.2). In the packet was a letter from IURA Executive Director Nels Bohn that outlines the issues and summarizes the Planning Committee's recommendations. According to the letter, Common Council is being asked to "1) to determine if the properties are appropriate for structuring a proposed disposition action; and 2) to identify public policy objectives for disposition and the preferred method of disposition for each property ". Once staff knows what Common Council's goals are for these properties, staff would work with the Attorney's Office to structure what would be the best approach in going forward. Committee members asked questions and expressed their thoughts about the sale of these properties. Since he was absent from the meeting, Chairperson Clairborne read a statement from Alderperson Proulx regarding his thoughts on the sale of these properties. After discussion, Nels Bohn responded that they would draft a resolution that summarized what was discussed and Chairperson Clairborne agreed to write a letter to the Planning and Economic Development Committee that summarized what was discussed at this meeting. 15. Human Resources (HR) Department Director's Report. HR Director Michell -Nunn reported on the following: City Administration Committee Meeting March 28, 2012 Page 7 Employee Forums: There was an employee forum on Monday — March 26, 2012, in City Hall. There will be a forum on Friday — March 30, 2012, at the Youth Bureau from 11:00 a.m. to 12:30 p.m. and on Monday — April 2, 2012, at the DPW (Water & Sewer) from 2:00 p.m. to 3:30 p.m. A reminder will be sent about upcoming forums. Common Council members are encouraged to attend. The agenda included opening remarks from the Mayor, an overview of the budget and the City's financial state by the Controller and an update on the Excellus BC /BS changes by the HR Director. Employees provided feedback/input /suggestions around ideas that management and Common Council should consider when looking at increasing revenues and decreasing expenses (e.g. look into the City's vehicle usage or employees taking vehicles home; look into increasing parking rates; look into 24 hour staffing of parking garages or electronic ticketing; look into franchise fees as a potential revenue source; etc.) Employees expressed their frustration on not seeing results or receiving any feedback or follow -up to previous submitted suggestions. Undoing Racism Workshops: The Undoing Racism Workshops will be held on the three consecutive Mondays, Tuesdays and Wednesdays starting May 7, May 8 and May 9. David Billings, from the People's Institute for Survival and Beyond, will conduct the workshops. This is the City's third year participating in this workshop that focuses on understanding what racism is, where it comes from, how it functions, why it persists and how to undo it. Last year, the City had more than 30 employees participate. The feedback has been positive. This year the City has 30 slots. Common Council members are encouraged to attend this workshop. Novak Report: When the Novak Report was first completed, the Senior Staff had an opportunity to hear the presentation from the Novak Group. On Tuesday — March 27, 2012, Senior Staff began an exercise looking at the Novak Report. At this meeting, Senior Staff looked at what they liked about the recommendations, identified questions or clarifications that they needed regarding other recommendations as well as they identified any concerns that they had related to these recommendations. They did not complete all of the recommendations so they will continue this exercise at their next meeting. The results from this exercise will be shared with the GPA (Governance Accountability and Performance) Committee. 16. Finance /Controller's Office Controller's Report. Controller Thayer reported on the following: End of Year: Controller's Office has finished the 2010 audit activity, which was approved tonight, and is trying to close up 2011 activity. 2012 activity is in full swing. The Controller's Office is getting ready for 2013 budget season. Fund Balance: The City has a $730,000 deficit for the 2011 Budget. This will change with inventory adjustments. State Budget: For 2012 activities that have State Aid, the City budgeted a slight decrease of 2% or $51,000. Since the State Aid will remain the same, the City will have about $51,000. City Administration Committee Meeting March 28, 2012 Page 8 Sales Tax: The City budgeted just under a 2% increase in sales tax for 2012. Sales tax collections continue to come in slow. In comparing the same time period, the City has collected 1% less in sales tax for 2012 than in 2011. Snow Removal: The City has spent less money on snow removal in salaries, snow and overtime. For the same time period in 2012 and 2011, the City spent for salaries and overtime $27,000 this year and $129,000 in 2011. In salt, the City has spent $34,000 this year compared to $72,000 last year. Since the City purchases salt from a state contract, there is a requirement that the City has to buy a certain amount of salt on an annual basis. The City will have to purchase some salt even though the inventories are up. Overtime Cost: In 2012, the City budgeted $935,000 for overtime. To date, the City has spent $197,000 in overtime. In 2011, the City spent $1,210,000 in overtime. Building Permit: ermit: In 2012, the City budgeted $385,000 and has collected $73,000 to date. Parking- Revenue: In 2012 to date, the City has collected $440,000 of the $2,000,000 budgeted amount for parking revenue. Recommendations will be forthcoming from the Parking Sub - Committee on the parking issues within the City. City Credit Cards: The Controller's Office has received the City credit cards. Deputy Controller Andrew is working on a credit card policy and will soon issue credit cards to some departments so personal credit cards do not have to be used for City business. E -mail S.. se: The Controller's Office has been working with the IT Department regarding the e -mail system. The City has to get a new e-mail system by July 2013. This will cost the City. The IT Department has projected cost over a 6 year period for various alternatives. The Controller's preference is to put the cost of an e -mail system into the 2013 budget process because it is a significant cost that the City does not currently have the funds for and it was not budgeted for in the 2012 budget. The IT Department will look at and make recommendations for replacement of the e -mail system. 17. Reports Mayor's Report. None. 2. Sub - Committee Updates. None. 3. Council Members' Announcements Meeting Days for City Administration Committee: Chairperson Clairborne announced that the City Administration Committee meeting will move to the fourth Wednesday of the month (vs. the last Wednesday) and thanked everyone for their input. 4. Next Month's Meeting: April 25, 2012. City Administration Committee Meeting March 28, 2012 Page 9 18. Adjournment With no further business and on a motion by Alderperson Kerslick, the meeting was adjourned at 9:00 p.m.