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HomeMy WebLinkAboutMN-B&A-1992-11-19 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7 : 30 P.M. NOVEMBER 19, 1992 MINUTES PRESENT: COMMITTEE MEMBERS: Booth, Johnson, Romanowski, Berg COMMITTEE MEMBER EXCUSED: Daley OTHER ALDERPERSONS PRESENT: Blanchard, Efroymson, Hoffman, Schroeder ALDERPERSON EXCUSED: Golder OTHERS PRESENT: Mayor - Nichols City Controller - Cafferillo Deputy Controller - Thayer Superintendent of Public Works - Gray Assistant Superintendent of Public Works - Ferrel Superintendent of Water and Sewer - Shimer Transit System Supervisor - Oltz BPW Chair - Reeves BPW Commissioners - Gerard, Brandford Members of the Media 1 . Opening Comments Members of the Public were asked to speak; the following individual spoke: A. Terry Pascal, 121 Prospect Street - stated that he was concerned about solid waste fees including trash tag costs in the City. He explained that he wanted to know why tag costs are not decreasing and have programs been instituted to reduce the solid waste costs . He suggested that recycling should be done on alternate weeks . No other individuals spoke. 2 . DPW Budget The Mayor has recommended a 1993 DPW Budget in the amount of $ 5, 397, 799 . Superintendent of Public Works Gray stated that this budget is a starting point for the DPW and will probably have to be revisited by the B & A Committee during 1993 as different service and personnel issues arise. Gray stated that some of the areas of concern or changes relating to the 1993 DPW Budget that should be noted are as follows : A. A large amount of equipment has been capitalized for the third year in a row BUDGET AND ADMINISTRATION MINUTES - 11/19/92 B. Solid Waste costs - Trash tag fees are remaining at 1992 levels and other Solid Waste costs are increasing C. Bus Operations D. New Court Facility Building - new personnel to maintain building E. New Municipal Pool to maintain F. Large amounts of road construction work capitalized Gray explained that the following positions will be eliminated or transferred if this budget is adopted: A. One mechanic left the City B. One mechanic left to joint Cornell (Transit Facility) C. Two other mechanics transferring to another area of the budget from Garage account D. Two - three positions in Solid Waste Fund will 'be transferred to the General Fund Mayor Nichols explained that the City is working hard to avoid layoffs as much as possible. He stated that parttime and seasonal money will be used for the individuals that were transferred. The Committee agreed to examine each DPW account and bring up concerns in each individual account discussion. Account A1440 City Engineer was discussed. The Mayor recommended a 1993 Budget at $193, 871 . The lack of Senior Staff in Engineering was discussed. Gray explained costs associated with each capital project are budgeted as a part of the capital projects funds . No change was made. Account A1490 Public Works Administration was discussed. The Mayor recommended a 1993 budget at $91,465 . It was noted that the salary staff increased significantly from 1991 because a secretary' s position was not filled until late 1992 . No changes were made. Accounts A1620, 1621, 1622, 1623, 1624, 1625, 1626 and 1627 were discussed. These budgets all deal with maintenance of the City' s buildings including the new Court Facility building. It was noted that in future years many DPW accounts will be consolidated to decrease the number of accounts . A discussion on the City Hall HVAC Capital Project was discussed. The project was authorized in 1991 and to date no work has been done. Gray explained that the workload is 2 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 too much for the current staff and he doesn't see this project getting started until late 1993. The utility estimate for the City Court Facility building was discussed. At the time of the Mayor ' s budget the City estimated a $20, 000 utility cost, now it has been estimated at $10, 000 for six months . It was noted that the building will only be in operation for six months in 1993. The Committee agreed to delete $10, 000 from A1627-410 . No vote was taken. It was also explained that one and a half new positions will be needed to maintain the building. Those positions are incorporated into the Mayor ' s recommendation. Accounts A3311, 3312, 3320 were discussed. These accounts deal with Traffic Control and Metered Parking. A brief discussion on personnel followed. No changes were made. Accounts A5010, 5111, 5112, 5113, 5120, 5132 and 5142 were discussed. These accounts relate to maintenance of roads, bridges, garages and snow removal. Assistant Superintendent of Public Works Ferrel stated that Wood street, Giles Street and East Hill areas have been worked on during 1992 . Gray explained that various salt substitutes have been examined for the City, but they are all much more expensive than salt and cinder. Gray stated that the City is using 60% less salt than what it used to use. No changes were made. Accounts A5630 and A5631 were discussed. These budgets relate to Bus Operations, Ithaca Transit and Northeast Transit. The Mayor recommended a 1993 Budget for Bus Operations in the amount of $952, 652 . ( Ithaca Transit) This represents a $216,547 increase from 1992 . Gray explained that the increase in the budget is due to the new Transit Facility costs . He explained that some of the increase is due to the fact that this Budget is close to a program budget which reflects all costs related to the operation of the bus program. It was noted that the cost is reflected in the 435 accounts, $311, 760. Gray explained that the Bus Operation Budget now includes fringe benefits, costs for more employees and increased costs in utilities and insurance. Alderperson Blanchard explained the costs to the Committee. Blanchard stated that Cornell is the lead Agency for the Ithaca Tompkins Transit Center. She explained that the Transit Center has a total cost for 1993 of $1,027, 913. These costs relate to shop costs and Administration costs 3 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 for the Center. Alderperson Blanchard explained that the $311, 760 in the 435 account is made up of: A. $267, 500 Transit Facility Contract B. $ 37, 500 Gadabout Annual Contract C. $ 5, 000 Transit Consultant Contract D. $ 1, 760 Physical Examination costs Blanchard stated that the City' s share of the Center, $267,500 is distributed into three categories : A. Shop Cost Mechanics $36,219 Shop rate $29 .76/hr B. Shop Cost - Other $120,236 Shop rate $8 . 97/hr C. Administrative - Operating Cost $111, 045 She explained that the shop costs are allocated by the City' s total of estimated shop hours of 4, 040 (based on prior experience) . The Administrative costs are allocated by a percent of bus ownership ( Ithaca owns 10 buses) . Blanchard explained that these are all estimated costs and until we have some actual experience the actual costs of the Center will not be known. The costs may be higher or lower than this estimate. She stated that she is hopeful the costs will be lower. Deputy Controller Thayer stated that the budgets will be monitored monthly and reports will be made to the Council. Gray explained that some of the cost savings will not be shown until later years and there is a plan to consolidate the DPW in the near future. He stated that the space left vacant from the move to the Transit Center will be used in conjunction with the consolidation plan. A discussion on the Center followed. Blanchard discussed additional costs that were not in the Mayor' s budget that need to be addressed. Blanchard and Transit Supervisor Oltz explained that because of the new ADA requirements approved by Council the Gadabout Contract will be estimated to increase by $10,000 . Oltz explained that the ADA requirements will increase the area that Gadabout has to cover in terms of door to door service. Blanchard also explained that Gadabout has stated that they will not be able to cover their entire portion of the Center cost which totals $169, 134 . Gadabout has stated that they will be $90, 000 short. Blanchard explained that the members of the Center: Cornell, Tompkins County and the City have agreed to share the shortfall among them. She stated that 4 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 currently the shortfall will be split three ways, meaning the City must cover $30, 000 additional dollars . Blanchard noted that we are required by law to provide the Gadabout service so the City has little choice in the matter. She noted that Cornell and Tompkins County have also included $30, 000 in their 1993 budgets for this purpose. Blanchard also stated that this $90, 000 shortfall will not be permanent because the participants involved will assist Gadabout in finding new funding sources for the future. (Federal Grants, private sources and United Way donations) She also noted that if the estimated costs are lower, the shortfall will be less . After a discussion on Gadabout ' s service the following motions were made: RESOLVED, that $10,000 be placed in A1990 Restricted Contingency to fund increased Gadabout ADA requirements relating to the City and be it further RESOLVED, that account A5630-435 Contracts be reduced by $5,000 and account A5630-405 Telephone be reduced by $600 and account A5631-435 Contracts be reduced by $1,488 to help offset the costs of the new ADA requirements. Discussion followed on the motion. Blanchard noted that the $5, 000 and $1,488 represent a possible hiring of a transit consultant for 1993 . Mayor Nichols and Superintendent of Public Works Gray argued that we need a transit consultant for 1993 to ease with the transition of a new supervisor and a new facility. Voting results on the motion were as follows : Ayes (5) Booth, Blanchard, Schroeder, Hoffman, Johnson Nays (1) Efroymson Abstain (2 ) Berg, Romanowski The motion passed 5-1-2 . The following motion was proposed: RESOLVED, that $30,000 be placed in A1990 Restricted Contingency to fund the Gadabout possible shortfall in 1993 related to the Ithaca Tompkins Transit Center, and be it further RESOLVED, that the Ithaca Tompkins Transit Center examine all possible allocation of costs to the facility participants for the projected Gadabout shortfall. City Controller Cafferillo stated that in 1991 Gadabout received funding from: 5 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 City of Ithaca $37,500 Tompkins County $66, 145 United Way $15, 700 Town of Ithaca $ 8, 000 A motion to amend the amount to be placed in restricted contingency to $24, 324 was proposed but it died for lack of a second. Voting results on the motion followed: Ayes (7 ) Booth, Blanchard, Romanowski, Berg, Hoffman, Johnson, Schroeder Nays ( 1) Efroymson The motion passed 7-1 . Accounts A5651, 5652, 5653, and A5654 were discussed. These budgets relate to the operating expense of the City' s parking lots and ramps. A discussion on the possibility of permanently extending the collection hours for the downtown lot followed. No changes were made. Account A7111 Parks and Forestry was discussed. It was noted that the Mayor recommended the purchase of trees in 1993 in the amount of $28, 000 . The 1992 Budget for tree purchases was $18, 000 . Gray explained that a tree replacement program has been established and $28, 000 is needed for 1993 . The following motion was made RESOLVED, that $5,000 be reduced from account A7111-485 Trees. Voting results on the motion were as follows : Ayes (3) Booth, Blanchard, Romanowski Nays (5) Berg, Schroeder, Hoffman, Johnson, Efroymson The motion failed 3-5 . Account A7113 Six Mile Creek was discussed. Gray explained salary amount for lines 115 and 120 . Gray explained that $5, 100 was related to the Gorge Ranger and the other amount of $4,265 was not identified. The following motion was made: RESOLVED, that $4,265 be reduced from account A7113-115. Voting results on the motion were as follows : Ayes (4) Berg, Booth, Schroeder, Efroymson Nays (4) Hoffman, Blanchard, Romanowski, Johnson 6 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 The motion failed 4-4 . No further motions were made on this account. Account A7250 Golf Course was discussed. The Mayor recommended a 1993 Budget in the amount of $110, 896 . A discussion on the Golf Course personnel and receipting procedures followed. It was noted that the following personnel operate the Golf Course: A. One Golf Pro B. One F/T Working Supervisor for maintenance (not in Club House) C. Two F/T Seasonal laborers (mostly maintenance of Course) A discussion on the Golf Course rates followed. It was noted that the Golf Pro recommended an increase in Golf rates for 1993 . After a brief discussion, the following motion was made: RESOLVED, that account A2050 Golf Course Charges be increase by $12,000 to reflect Golf Course rate changes to be determined by the BPW. The motion passed 8-0 . Account A8810 City Cemetery was discussed. Alderperson Schroeder explained that the City Cemetery is in bad shape because the DPW crew was only able, because of budget cuts, to perform maintenance on the cemetery twice during 1992 . After a brief discussion the following motion was made: RESOLVED, that $5,800 be added to account A8810-120 for the addition of one P/T seasonal worker. Voting results on the motion were as follows: Ayes (2 ) Schroeder, Hoffman Nays ( 6) Berg, Blanchard, Booth, Johnson, Romanowski, Efroymson The motion failed 2-6 . The following motion was made: RESOLVED, that the $5,800 P/T seasonal position be filled in the ASS10-120 Cemetery account, and be it further RESOLVED, that the funding for said position be provided by the DPW to the Common Council in the form of a list of priorities of services within the P/T and seasonal funds 7 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 which Council will determine which service to delete to fund said position. Voting results on the motion were as follows : Ayes (6) Berg, Schroeder, Hoffman, Blanchard, Romanowski, Efroymson Nays (2) Booth, Johnson The motion passed 6-2 . The following motion was made: RESOLVED, that the General Fund portion of the DPW Budget be approved as amended. The motion passed 8-0 . 3. Parking The Mayor asked the Committee for their concurrence on the request from McCurdy' s Department Store and the Downtown Merchants to allow free parking in downtown lots and garages for the day after Thanksgiving. It was projected to cost the City $1, 000 in revenue. The Mayor stated that he would grant the request. The Committee concurred with the Mayor' s decision. 4 . Water Fund The Mayor recommended a 1993 Water Fund Budget in the amount of $1, 965,255 . The 1993 water rate will remain at the same level as 1992 ( $1 .21 per 100 cubic feet) . It was noted that this fund is supported by user fees . The improvement project to the Water Treatment Plant was discussed. Superintendent of Water and Sewer Shimer stated that currently an interim improvement project is underway and a long term project is being planned. Shimer stated that water rates may be increased when the long term improvement project is started. After a brief discussion, the following motion was made: RESOLVED, that the 1993 Water Fund Budget be approved as recommended in the amount of $1,965,255. The motion passed 7-0 . Alderperson Schroeder was excused for the remainder of the meeting. 8 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 5 . Sewer Fund The Mayor recommended a 1993 Sewer Fund Budget in the amount of $2,507,253 . The 1993 sewer rate will also remain at the same level as 1992 ( $1 .40 per 100 cubic feet) . It was noted that this fund is supported by user fees. After a brief discussion on some sewer accounts, the following motion was made: RESOLVED, that the 1993 Sewer Fund be approved as recommended in the amount of $2,507,253. Voting results on the motion were as follows : Ayes (6) Johnson, Booth, Blanchard, Hoffman, Romanowski, Berg Abstain ( 1) Efroymson The motion passed 6-0-1 . 6 . Joint Activity Fund The Mayor recommended a 1993 Joint Activity Fund Budget in the amount of $1, 880, 019 . The 1993 Joint Activity 0&M recovery rate remained at the 1992 level of . 688 per 100 cubic feet. It was noted that this fund is user fee supported. The participating municipalities support this fund: City of Ithaca, Town of Ithaca and Town of Dryden. It was noted that the sludge disposal fee has been decreasing over the past few years because of the County' s composting activity. The SJS Committee and the BPW have approved this budget. After a brief discussion, the following motion was made: RESOLVED, that the Joint Activity Fund be approved as recommended in the amount of $1,880,019. The motion passed 7-0 . 7 . Solid Waste Fund The Mayor recommended a 1993 Solid Waste Budget in the amount of $1, 018, 878. 9 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 It was noted that this fund is also supported by user fees (trash tags) . The Mayor has recommended that trash tag fees remain the same as the 1992 levels . The current trash tag fee level is : 35 lb. tag $36 . 00 per sheet of 12 $3 .00 per tag 20 lb. tag $22 . 00 per sheet of 12 $1 . 83 per tag City Controller Cafferillo presented the Committee with a comparison of trash tag fees between the City of Ithaca and the outside haulers (i.e. Collins Disposal and Superior) . He noted that the current County tipping fee is $145/ton and the 1993 County tipping fee will be $95/ton. The outside haulers tag fees are as follows : 1992 1993 Collins Disposal 35 lb. tag $54 . 60 per 12 $41 .20 per 12 20 lb. tag $40 . 81 per 12 $32 . 00 per 12 Superior 35 lb. tag N/A N/A 20 lb. tag $31 . 00 per 12 $24. 60 per 12 Cafferillo stated that the City' s 1992 trash tag costs were 40% to 85% lower than the outside haulers and the City' s recommended 1993 trash tag costs are 14% to 45% lower than the outside haulers . Cafferillo explained that the City' s 1992 trash tag fees were too low and will not totally fund the Solid Waste Fund. He noted that the estimates to arrive at the 1992 trash tag fees were based on actual prior year usage. Cafferillo explained that the City will not have to increase the trash tag fee for 1993 to fund the possible $100, 000 Solid Waste Fund loss of 1992 because of the following: the County lowered the tipping fee, the City is cutting Solid Waste Fund costs, and the City will pay off the 1992 Solid Waste Fund loss over a period of years instead of all in one year. Cafferillo explained that the DPW will remove three positions from the Solid Waste Fund Budget and use them elsewhere in the Department (i.e. City Court Facility) . Also, cardboard for major employers in the City will no longer be picked up by the City, beginning December 7, 1992 . A discussion on garbage in the City' s parks followed. It was noted that Stewart Park has the largest garbage collection of any park, 140 tons . Some of the Committee members wanted to remove the City Park garbage cans and have 10 BUDGET AND ADMINISTRATION MINUTES - 11/19/92 individuals take their own garbage out of the park, similar to how the State Parks currently operate. No motion was made at this time on the City Park garbage issue. Cafferillo explained that the estimated 1992 loss in the Solid Waste Fund is $100, 000 - $120, 000 . He stated that the Solid Waste Fund will owe the General Fund this amount. Cafferillo stated that the only costs that will not be covered in the Solid Waste Fund for 1992 will be the General Fund services owed to the General Fund. Cafferillo also presented a revised 1993 Solid Waste Budget because the Solid Waste Budget did not include 1993 salary amounts. He stated, however, that the bottom line does not change because the difference will be made up in the transfer to the General Fund account. The Committee agreed on the change in salary figures . Cafferillo explained that the Committee must decide whether to write off the Solid Waste loss in 1992 or carry the loss into 1993 and future years . He explained that the 1993 recommended Solid Waste Budget has a $37, 000 amount which represents the portion to be paid back to the General Fund portion from the 1992 Solid Waste loss . The Committee agreed to carry the loss into future years and not write it off in 1992 . Mayor Nichols explained that because of the new County user fee imposed for 1993, the City will owe the County $9, 000. He explained that this fee is based on a per City employee charge and was not included in the 1993 Budget. The Committee agreed to reduce the transfer to the General Fund account and place $9, 000 in an account for user fees . After a brief discussion, the following motion was made: RESOLVED, that the 1993 Solid Waste Budget be approved in the amount of $1,018,878; and, be it further RESOLVED, that the 1993 trash tags remain at the 1992 levels and the repayment of 1992 Solid Waste loss will be repaid over a number of years, as needed, beginning in 1993. Voting results on the motion were as follows : Ayes (6) Booth, Efroymson, Blanchard, Hoffman, Romanowski, Berg Nay ( 1) Johnson The motion passed 6-1 . The meeting adjourned at 12 : 15 A.M. 11 REVENUES Mayor's Recommendation $23,586,499 Net Decrease in Revenues through 11/18/92 ($ 63,764) Balance Mayor's Recommendation Prior to Budget Meeting 11/19/92 $23,522,735 Action Taken During Meeting of 11/19/92: Reduce A1720 Parking Lots and Garages to reflect change in Budget Estimate ($ 45,000) Increase A1740Parking Meter Fees to Reflect Change in Budget Estimate $ 45,000 Increase A2050 Golf Charges to Reflect Increases in 1993 Golf Fees $ 12,000 Mayor's Adjusted Revenues as of Conclusion of 11/19/92 B&A/COW Meeting $23,534,735 Net Increase in Revenues from 11/19/92 Meeting $ 12,000 Combined Net Decrease in Revenues After the 1115, 11/11, 11/17, 11/18 and 11/19/92 meetings ($ 51,764) Combined Net Increase in Mayor's Budget after the 11/5, 11/11, 11/17, 11/18 and 11/19/92 meetings $ 134,979 12 APPROPRIATIONS Mayor's Recommendation: $23,733,364 Net Increase in Mayor's Budget Appropriation through 11/18/92 $ 60,303 Balance Mayor's Recommendation Prior to Budget Meeting 11/19/92 $23,793,667 Action Taken During Meeting of 11/19/92: Restricted Contingency Increase A1990 Restricted Contingency to Reflect Gadabout ADA Requirement Increases: $ 10,000 Increase A1990 Restrict Contingency to Reflect Increase in Gadabout Contract to City $ 30,000 DPW Reduce A1627-410 Court Facility Utilities to Reflect Reduced Estimate ( $ 10,000) Reduce A5630-435 Bus Operation Contractual to Reflect Discontinuation Transit Consultant Contract ($ 5,000) Reduce A5630-405 Bus Operation Telephone to Reflect Reduction in Telephone Cost ($ 600) Reduce A5631-435 Northeast Transit Contractual to Reflect Discontinuation of Transit Consultant Contract ($ 1,488) Mayor's Adjusted Recommendation as of Conclusion of 11/19/92 B8A/COW Meeting $23,789,579 Net Overall Increase in Mayor's Appropriations after the 11/5, 11/11, 11/17, 11/18 and 11/19/92 Meetings $ 22,912 Combined Net Increase in Mayor's Appropriations After the 11/5, 11/11, 11/17, 11/18 and 11/19/92 Meetings $ 83,215 13