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HomeMy WebLinkAboutMN-SPCC-04-29-20COMMON COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Special Meeting 6:00 p.m. April 29, 2020 PRESENT: Mayor Myrick Alderpersons (10): Brock, McGonigal, Nguyen, Murtagh, Gearhart, Fleming, Kerslick, Smith, Mohlenhoff, Lewis OTHERS PRESENT: City Clerk – Conley Holcomb City Attorney - Lavine Chief of Staff - Cogan Human Resources Director – Michell-Nunn City Controller – Thayer SPECIAL ORDER OF BUSINESS: Mayor Myrick provided a brief background on the state of the City and explained the Federal stimulus packages that have been approved to date. He acknowledged the hard work of City Controller Thayer, City Attorney Lavine, Human Resources Director Michell-Nunn and Chief of Staff Cogan. Chief of Staff Cogan presented information about the City’s budget including the percentages of funds received from property taxes, sales tax, local revenues, parking revenue, New York State funding, and Federal funding. He further explained the percentages of City expenses including wages/overtime/fringe benefits, contracts, parts/fuel/supplies/equipment, and debt service. He broke down the City’s expenses by departments and compared them to a $4 million and $13 million deficit to illustrate the scale of this financial crisis. Mayor Myrick explained that if the City tried to address the deficit through property taxes, it would require a 53% increase. He stated that his immediate goal is to save $5.4 million. He explained that furloughs are heavy on youth services at this time because the youth programs cannot be opened safely at this time. He stated that all City operations will need to be rearranged to address this situation and explained the difference between layoffs and furloughs. He further described the committee that is being created to consider furlough recalls and filling vacant positions to maintain essential services. Discussion followed on the floor regarding budget projections, the NY Pause, a potential resurgence of the virus, and the length of time an economic recovery could take. 1.1 Resolution Authorizing Mayor and City Controller to Close Proposed Budget Deficit via Emergency Unpaid Furloughs, and Authorization for Furlough MOU By Alderperson Fleming: Seconded by Alderperson Kerslick WHEREAS, the shutdown of the economy in response to the COVID-19 crisis has seriously impacted City revenues, resulting in a projected budget deficit for 2020 of between $4 million and $13 million due to decreased sales tax collections, decreased parking revenues, decreased trash tag revenues, likely reductions in state aid, and reductions in other revenue sources; and WHEREAS, a federal stimulus package to provide aid to state and local governments is essential for preventing significant long term cuts to City payroll and services; yet the prospect of such a stimulus package is uncertain, the amount of the stimulus is unknown, and the successful passing of a stimulus bill in Washington is unlikely until the end of May at the earliest; and WHEREAS, the sooner City expenses are reduced through cuts, the quicker the City will be able to reduce the budget deficit for 2020, and the sooner such cuts can be restored, especially if federal stimulus money is awarded; and April 29, 2020 2 WHEREAS, current City of Ithaca payroll is approximately $560,000 per week, with that number typically being even higher during summer months once seasonal employees were hired; and WHEREAS, there are City services that cannot currently be provided due to the Governor's executive order to put New York on Pause; and WHEREAS, the Mayor and City Controller, with cooperation from senior management, has analyzed current City operations and has identified possible cuts that would result in savings of approximately $4.8 million if extended through the end of 2020; and WHEREAS, these cuts involve the furloughing of approximately 87 City employees, cuts to seasonal staff, adjustments to staff benefits, and various other reductions; and WHEREAS, Common Council wishes to authorize the Mayor and City Controller to take the steps necessary to implement these cuts; now, therefore, be it RESOLVED, That the Common Council of the City of Ithaca hereby authorizes the Mayor and the City Controller to take the steps necessary to cut City expenses by $5.4 million, including through the furloughing of up to 90 City employees, and to make appropriate modifications to any fund in the City budget to account for these changes, resulting in the defunding of numerous rostered positions across all departments of the City; and be it further RESOLVED, That the Common Council authorizes the Mayor to enter into agreements structuring employee furloughs in a manner substantially similar to the included MOU, providing City financial support for health insurance during furlough, permitting the cash-out of up to two weeks of accrued leave time at the start of the furlough, and preserving all other accrued leave time in tact; and be it further RESOLVED, That Common Council directs the Mayor to review the roster of furloughed employees on a weekly basis and authorizes the Mayor, in consultation with the City Controller, to recall furloughed employees to the City payroll as needs arise and the economic picture improves, by making appropriate modifications to the City budget to account for these changes, resulting in the restoration of funding for the associated rostered positions recalled, provided, however, that such recalls shall not in the aggregate in any one month exceed an increase in City expenditures of $200,000 per month without additional authorization of the Common Council; and be it further RESOLVED, That Common Council directs the Mayor to report weekly to Common Council the number of employees by department who are furloughed and the number recalled and to recommend to Common Council appropriate amendments to the City budget to account for subsequent changes to City revenues and expenses. Amending Resolution By Alderperson Lewis: Seconded by Alderperson Brock RESOLVED, That an additional Resolved clause be added to read as follows: “RESOLVED, That as soon as the 3 furloughed Ithaca Fire Departments recruits have completed the academy, each retirement in IFD thereafter shall result in the prompt recall of one of the furloughed recruits.” Mayor Myrick explained that the Fire Academy is currently closed. The new recruits could be recalled to finish the academy when it is reopened. Alderperson Murtagh stated that he would be recusing himself from the vote as the Ithaca Paid Fire Fighters (IPFF) endorsed his campaign for NYS Assembly. April 29, 2020 3 Amendment to the Amending Resolution By Alderperson McGonigal: Seconded by Alderperson RESOLVED, That the Amending Resolution be amended to read as follows: “RESOLVED, That the 3 firefighters identified as being furloughed be kept on the payroll.” The motion failed for lack of a Second. Discussion followed minimum staffing levels, the projected costs of overtime resulting from the proposed furloughs, the potential for SAFER grant funding, and the importance of emergency services and summer youth programming. Call the Question By Alderperson Fleming: Seconded by Alderperson Smith RESOLVED, That the question be called. A vote on the Amending Resolution resulted as follows: Ayes (9) Brock, McGonigal, Nguyen, Gearhart, Fleming, Smith, Kerslick, Mohlenhoff, Lewis Nays (0) Abstentions (1) Murtagh Carried (9-0-1) Main Motion as Amended A roll call vote on the Main Motion as Amended resulted as follows: Alderperson Brock - Aye Alderperson McGonigal - Aye Alderperson Nguyen - Aye Alderperson Murtagh - Aye Alderperson Gearhart - Aye Alderperson Fleming - Aye Alderperson Smith - Aye Alderperson Kerslick - Aye Alderperson Mohlenhoff - Aye Alderperson Lewis – Aye Carried Unanimously 1.2 Resolution Amending Available Health Insurance Plans for the Mayor, the Common Council, and Managerial and Confidential Employees By Alderperson Kerslick: Seconded by Alderperson Smith WHEREAS, On July 6, 2016 Common Council adopted a resolution that all employees not covered by a formal labor contract, excluding positions designated as management, be granted salary increases and fringe benefits in accordance with the provisions of the CSEA Administrative Unit contract, and WHEREAS, the nation is faced with unprecedented times due to the Coronavirus pandemic, which has resulted in devastating financial implications on the City’s ability to generate revenue, and WHEREAS, without Federal assistance for local government, the City is forced to seek solutions to mitigate the potential estimated loss of as much as $13 million, and WHEREAS, the City is also making painful cuts resulting in the furlough of approximately 85 employees; and WHEREAS, the sooner and more effectively the City makes difficult, cost-saving choices, the fewer outright furloughs will be required, the sooner those furloughed employees can be recalled to active work, the sooner the City will be able to reduce the budget deficit for 2020, and the more likely the City will be able to stabilize the 2021 budget without yet deeper cuts at that time; and WHEREAS, health insurance is a major expense that may be reduced significantly by transitioning employees to the Platinum Metal Plan, which offers comparable coverage at a much lower cost, and April 29, 2020 4 WHEREAS, the Mayor has determined that this is a measure to pursue immediately for Management and Confidential staff, as well as for the Mayor and members of the Common Council; now, therefore, be it RESOLVED, That Confidential staff shall, effective June 1, not be granted health insurance benefits in accordance with the provisions of the CSEA Administrative Unit contract, which currently offers the Indemnity Plan option, and shall instead receive health insurance benefits as follows, and, be it further RESOLVED, That Management and Confidential employees and the Mayor and members of the Common Council shall be offered a Special Enrollment period as soon as feasible, at which they may select between the Platinum Metal Plan and the Indemnity Plan, with the City contributing towards either of those plans eighty percent (80%) of the cost of coverage under the Platinum Plan, the remaining amount to be paid by the insured participant, and, be it further RESOLVED, That Management and Confidential employees, shall, within no more than twelve months of retirement, be provided the opportunity to choose among any plan option offered by the City to other retirees whose date of retirement occurs in the same year, procedures and timing subject to the Municipal Health Insurance Consortium rules; and, be it further RESOLVED, That any furloughed employee who elects a retirement date occurring during the period of their Emergency Unpaid Furlough shall, within no more than twelve months of retirement and subject to the procedures and timing of the Municipal Health Insurance Consortium, be provided the opportunity to choose among any plan option and terms for the purchase thereof that would have been available to that employee on the actual date of their retirement had they retired direct from City employment (in their most recently-held position) rather than from furlough. Discussion followed on the floor regarding the permanence of this legislation, the projected cost savings, the competitiveness of the Platinum Plan, and the employee’s ability to retain the Indemnity plan by paying the difference in cost. Retirees will be able access the Indemnity plan on the same terms as if this Resolution were not adopted. A roll call vote resulted as follows: Alderperson Brock - Nay Alderperson McGonigal - Nay Alderperson Nguyen - Aye Alderperson Murtagh - Nay Alderperson Gearhart - Aye Alderperson Fleming - Aye Alderperson Smith - Aye Alderperson Kerslick - Aye Alderperson Mohlenhoff - Aye Alderperson Lewis – Aye Carried 7-3 1.3 Resolution Repealing 2020 Increase in Managerial Compensation Plan and Eliminating 2020 Managerial Employee Cash-In of Annual Leave By Alderperson Smith: Seconded by Alderperson Kerslick WHEREAS, the shutdown of the economy in response to the COVID-19 crisis has seriously impacted City revenues, resulting in a projected budget deficit for 2020 of between $4 million and $13 million due to decreased sales tax collections, decreased parking revenues, decreased trash tag revenues, likely reductions in state aid, and reductions in other revenue sources; and WHEREAS, a federal stimulus package to provide aid to state and local governments is essential for preventing significant long term cuts to City payroll and services; yet the prospect of such a stimulus package is uncertain, the amount of the stimulus is unknown, and the successful passing of a stimulus bill in Washington is unlikely until the end of May at the earliest; and WHEREAS, the City is also making painful cuts resulting in the furlough of approximately 87 employees; and April 29, 2020 5 WHEREAS, the sooner and more effectively the City makes difficult, cost-saving choices, the fewer outright furloughs will be required, the sooner those furloughed employees can be recalled to active work, the sooner the City will be able to reduce the budget deficit for 2020, and the more likely the City will be able to stabilize the 2021 budget without yet deeper cuts at that time; and WHEREAS, managerial employees were budgeted and scheduled to receive an increase in compensation on December 31, 2020, per item 8.14 of the December 4, 2019 Common Council agenda, entitled Adjustment of the Managerial Compensation Plan; and WHEREAS, managerial employee cash-in of annual leave costs the City $75,000 - $90,000 per year; now, therefore, be it RESOLVED, That the resolution at item 8.14 of the December 4, 2019 Common Council agenda is hereby repealed, thus eliminating any authorized adjustment of the managerial compensation plan in 2020; and be it further RESOLVED, That the option to cash in unused annual leave shall be suspended for managerial employees in 2020. Discussion followed regarding the donation of a percentage of salaries of Common Council members, and options available to management staff so they do not lose their vacation time if they are not able to use it due to the pending staff reductions. Amending Resolution: By Alderperson Brock: Seconded by: RESOLVED, That the last Resolved clause be amended to read as follows: “RESOLVED, That the option to cash in unused annual leave shall be suspended for managerial employees in 2020, and they shall be allowed to carry over all accrued days without limitation into 2021. The motion failed for lack of a Second. Discussion followed on the floor regarding encouraging people to use their vacation time if possible. Common Council agreed to leave it to the Mayor’s discretion to allow vacation time to be rolled over at the end of the year and to revisit this issue if needed. A roll call vote on the Resolution resulted as follows: Alderperson Brock - Aye Alderperson McGonigal - Aye Alderperson Nguyen - Aye Alderperson Murtagh - Aye Alderperson Gearhart - Aye Alderperson Fleming - Aye Alderperson Smith - Aye Alderperson Kerslick - Aye Alderperson Mohlenhoff - Aye Alderperson Lewis – Aye Carried Unanimously ADJOURNMENT: On a motion the meeting adjourned at 8:35 p.m. The video of this meeting can be found on the City’s YouTube channel at: https://www.youtube.com/c/CityofIthacaPublicMeetings Julie Conley Holcomb, CMC Svante L. Myrick City Clerk Mayor