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HomeMy WebLinkAboutMN-CA-2004-07-01Members Present: Council Members Present: Staff DRAFT CITY ADMINISTRATION COMMITTEE Regular Meeting July 28, 2004 Alderperson Berry, Alderperson Coles, Alderperson Zumoff, Alderperson Townsend (arrived at 7:05 p.m.), Alderperson Cogan (arrived at 7:05 p.m.) Alderperson Tomlan, Mayor Peterson Present: Debra Parson (City Chamberlain), Larry Fabbroni (Asst Supt of Public Works), Andy Olmetti (Employee Health & Safety Coordinator), Steve Thayer (Controller), Scott Andrew (Deputy Controller), Schelley Michell -Nunn (HR Director), Denise Malone (Administrative Secretary) Others Present: Herman Sieverding, Guy Gerard, Members of the Media Chairperson Berry called the meeting to order at 7:00 p.m. A. Chairperson Greeting & Opening Statement Chairperson Berry welcomed everyone to the meeting and explained the evacuation procedures. B. Agenda Review and Amendments, Approval of Minutes & Announcements There were no announcements, additions or deletions to the agenda. The Committee reviewed the minutes from the June 2004 meeting. After discussion, Alderperson Coles made a motion to approve the minutes from the June 30, 2004 meeting. Seconded Alderperson Zumoff. Motion carried 3 -0. (Alderpersons Cogan and Townsend were absent from the vote.) City Administration Committee Meeting July 28, 2004 Page 2 C. Statements from the Public. None. D. Employee Comments. None. E. Common Council Response. None. F. Affirmative Action Advisory Committee Update. None. Alderpersons Cogan and Townsend arrived at 7:05 p.m. G. City Chamberlain 1. Request Transfer of Funds for Temporary Employee The Chamberlain's Office requested to transfer an amount not to exceed $4,121.17 to cover the total cost of a temporary employee. After discussion Alderperson Townsend made a motion to approve the request. Seconded by Alderperson Coles. Motion carried 5 -0. The Committee agreed that this item would be put on consent agenda. 2. Request Transfer of Funds for Part -Time Employee The Chamberlain's Office requested to transfer an amount not to exceed $2,541 to cover the cost of a part -time employee. After discussion, Alderperson Zumoff made a motion to approve the request. Seconded by Alderperson Coles. Motion carried 5 -0. The Committee agreed that this item would be put on consent agenda. 3. Request to Amend Personnel Roster The Chamberlain's Office requested to amend the Personnel Roster by adding one (1) Assistant Fiscal Manager (Gr 11) and deleting one (1) Principal Account Clerk (Gr 9). After discussion, Alderperson Zumoff made a motion to approve the request. Seconded by Alderperson Coles. Motion carried 5 -0. The Committee agreed that this item would be put on consent agenda. City Administration Committee Meeting July 28, 2004 Page 3 4. Request Waiver of Tax Penalty The owner of 330 E. State Street asked for a waiver of penalty for City first installment taxes. The Chamberlain's Office requested that the penalty on the installment taxes be waived. Alderperson Townsend made a motion to approve the Chamberlain's Office request. Seconded by Alderperson Cogan. Motion carried 5- 0. The Committee agreed that this item would be put on consent agenda. 5. Request Waiver of Tax Penalty The owner of 312 College Avenue asked for a waiver of penalty for City second installment taxes, allegedly mailed on June 30, 2004 but postmarked by the US Post Office on July 8, 2004. The Chamberlain's Office asked that the request be denied. Alderperson Townsend made a motion to approve the Chamberlain's Office request. Seconded by Alderperson Cogan. The Committee discussed this item. Alderperson Zumoff asked to hear from the representative of the property, Mr. Herman Sieverding, who was present at the meeting. Mr. Sieverding stated that all of their property tax bills are sent out by metered mail and were all sent out on June 30. All of the 13 tax bills sent out that day were stamped by a meter on June 30 and taken to the post office for delivery. For some unknown reason, the property tax bill for the above property got separated from the rest of the metered mail. Mr. Sieverding spoke to the manager of bulk mail at the Post Office and was told that metered mail typically goes straight from the Ithaca Post Office to Elmira for sorting and then it gets delivered. Stamped mail goes to Rochester where it is canceled out, gets a postmark and then returned. The manager explained that somehow this piece of metered mail got separated from the rest of the metered mail, mistakenly got sent to Rochester. Was postmarked in Rochester on July 6 and then was delivered to the Chamberlain's Office. The Chamberlain's Office returned the mail to the company with a $4,000 penalty. City Chamberlain Debra Parsons stated that she did talk to the manager of bulk mail and was informed that there is a sufficient possibility that this was an error on the part of the Post Office. Ms. Parsons stated that the Real Property Tax City Administration Committee Meeting July 28, 2004 Page 4 Laws says that the US postmark is the postmark the City is supposed to look at. Alderperson Townsend inquired about the prior history in terms of paying on time. Ms. Parsons stated that as far as she knows they have not been late before. HR Director Michell -Nunn asked does whether this warrants a legal opinion from the City Attorney. Chairperson Berry will check with the City Attorney. Amendment: After further discussion, Alderperson Cogan made an amendment to the resolution as follows: "Resolved, that in light of the extenuating circumstances the request is approved. The penalty on the installment taxes shall be waived." Seconded by Zumoff. Motion carried 5 -0. Main Motion: A vote on the main motion resulted in a 5 -0 vote. Motion carried as amended. H. Fire Department 1. Request to Amend Authorized Budget On December 31, 2003, the Fire Department received the grant funds from the Triad Foundation. The purpose of the grant is to support the cost of training nine (9) fire fighters over twelve (12) months to operate new technology and equipment received by the Department of Homeland Security. The grant was intended to cover the cost of off -duty work by Hazardous Materials Team members who must be compensated at overtime rates when they come into participate in team -based training activities. The funds were deposited into the revenue account A3410- 2705 and are being expended from the Overtime Emergency Management account A3410- 5125 - 12300. The Fire Department requested approval to amend the 2004 budget as follows: Increase Revenue Account: $10,000 A3410 -2705 (Gifts & Donations) Increase Appropriation Account: $10,000 A3410- 5125 -12300 (Overtime Emergency Management) City Administration Committee Meeting July 28, 2004 Page 5 After discussion, Alderperson Cogan made a motion to amend the budget as requested and that said budget amendment shall be used for the sole purpose of supporting the off -duty attendance at training for members of the Ithaca Fire Department Hazardous Materials Team. Seconded by Alderperson Coles. Motion carried 5 -0. The Committee agreed that this item would be put on consent agenda. I. Department of Public Works (DPW) 1. Request Authorization for Sole Source Bidding for Repair and Rebuild of Elm Street Water Storage Reservoir Roof The Department of Public Works Engineering Department requested authorization for sole source bidding for repair and rebuild of Elm Street Water Storage Reservoir Roof. After discussion, Alderperson Cogan made a motion to authorize the following regarding the Elm Street storage reservoir: a. No other process provides substantially equivalent or similar benefits at a reasonable cost; b. The use of the Natgun process is extremely cost effective given the cost of the design and the savings in construction costs by using a proven method; C. The sole provider is Natgun Corporation; d. The use of the Natgun Corporation method uniquely serves the public interest e. That the City Engineer and other officers and employees of the City are authorized to take such steps: to review plans, specifications and other contract documents; to prepare a stipulated sum contract with Natgun Corporation to effectuate the intention of the foregoing resolutions f. That the funds needed for said water tank repair shall be derived from existing funds in previously authorized Water Fund Capital Projects. Seconded by Alderperson Townsend. Motion carried 5 -0. City Administration Committee Meeting July 28, 2004 Page 6 J. Human Resources 1. Workers' Compensation & Accident Loss Report HR Director Michell -Nunn asked that the Committee listen to Mr. Olmetti's presentation this evening. Ms. Michell -Nunn stated that the Safety Statement and Plan would be forthcoming, which would be voted on and pass on to Common Council. Health and Safety Coordinator Andy Olmetti reviewed the City's 1St and 2nd quarter 2004 Workers' Compensation and Accident Loss Report. Much of the data in 2001 and 2002 was not as available as it is now in 2003 and 2004 just because of different carriers and the way the carriers disseminated the information or had the information available. There are blanks for the years 2001 and 2002 because the data was unavailable from the carrier. Looking down the column for 2003, the City's total incurred losses for the first two quarters was $107,267. There were a total of 75 reported claims for the some two quarters. Prior to 2003, the City only reported claims that had medical cost associated. In 2003, the City started reporting all injuries. The reason behind that was if an injury occurred and at that time had no immediate problem or big medical issue, it could conceivably turn into something at a later date (i.e. a back strain - may not bother the injured now but could bother the injured days later.) In 2003, the total paid claims was 40, with a total restricted days of 21 and a total cost of lost time and restricted days of $91,688. Looking down the column for 2004, the City's total incurred losses for the first two quarters was $154,881. There were a total of 61 reported claims for the same two quarters. The total paid claims was 29. The total lost time cases (days lost) were 10 and the total cost of lost time and restricted days was $131,121. There is approximately $23,760 difference between the total incurred losses and the total cost of lost time and restricted days, which includes medical expenses and loss wages. The City had a slightly more loss days associated with injuries this year than last year but nothing significant. What is important is to know how the loss days cost the City in different aspects. Not only in loss wages but production, morale or other associated aspects. City Administration Committee Meeting July 28, 2004 Page 7 The report lists the total 207a /c wages paid for the respective quarters of those two years: $50,282 for 2003 and $26,806 for 2004. The total 207a (Fire) wages paid for 2003 was $11,964 and $9,734 for 2004. The total 207c (Police) wages paid for 2003 was $38,318 and $17,073 for 2004. Those numbers need to be added to the total incurred losses to be accurate. The numbers for 2004 has gone down. If you look at the numbers for 2002 and 2001 for 207a /c, the City has had a considerable drop, which is very encouraging. Last on the report show the breakdown of incurred losses by department. Observations: The total number of claims during 2004 decreased by 23% as compared to 2003. In comparing the incurred dollar loses for 2004 and 2003, there has been a significant decrease in incurred losses in comparison to the years 2001 and 2002. Slips and falls continue to dominate the loss experience for 2004, followed by strains. Resolution: This is a list of things that needs to be done to reduce the losses and injuries to employees, who are very critical to us now. It is encouraging that our numbers are going down. But, that is not the only indicator that a good safety program is working. It could be a false comfort. All employees regardless of position title are responsible for their own safety as well as that of co- employees. All levels of management need to actively participate and encourage safe work practices on the job through continuous monitoring, review and enforcement. Frontline supervisors have the ability to resolve safety hazards and deficiencies through proactive management by reviewing work procedures, identifying associated hazards, reviewing injury occurrences, training, and enforcement. They know the workforce, they know the job, and they can best enforce it and be further supported by upper management. Frontline employees have a responsibility, or the workforce as a whole, to be responsible for safe work practices and recognize when there are hazards. The Employee Health and Safety Coordinator, in conjunction with the insurer, has a responsibility to ensure, to monitor and to give the best technical advice, training and be a resource for all levels within the City. Mr. Olmetti stated that the City has been approved for a grant from the New York State Department of Labor in the amount of $32,000. The grant will further enhance employee hazard recognition and safety awareness through training. The goal would be to reduce the number of accidents and injures. The topics covered range from items that City Administration Committee Meeting July 28, 2004 Page 8 would be important to all employees such as right to know hazardous communications items (covered for all employees), to training more specific to departments primarily 5 &F and W &5. HR Director Michell -Nunn stated that the particular courses that the City would receive the money for would be courses that the City would need to do training regardless. The Committee thanked Mr. Olmetti for his presentation. Mr. Zumoff suggested that the workers' comp report be given regularly and asked whether this data could be used in the concept of trend analysis, to be used to predict the budget for next year. Mr. Olmetti answered in the negative. Ms. Michell -Nunn stated that you can't predict a major accident but education and awareness might prevent certain types of accidents and injuries. Controller Thayer stated that the City usually use trends to forecast the budget for workers' comp. But the more safety program in place and implemented each year the greater the chance the premiums would start to drop. The loss would reduce themselves. It is important that Council understands that workers' comp and the programs that the HR Department wants to implement are very important and have a lasting effect to the City's budget going forward. Workers' comp cost in the neighborhood of $900,000 to $1,000,000 a year. The more programs in place the better chances of the City's losses going down. Alderperson Coles asked would the Workers' comp insurance go down when there is documented savings in actual injuries or when an institutions sets up programs to try to reduce the number of injures. Controller Thayer stated that the carriers look at both. They look at the loss of claim losses for a period of time and come up with a premium based on the classification of employees. Workers' comp insurance rates increases about 10 -15 percent a year. Claim losses are used as a basis when setting the premiums. The carriers do ask annually if the City has safety programs in place. The more programs the better chance that the City would have a safe workforce. Chairperson Berry feels that there is a connection between morale in the workplace, participation in the program, support of the program and ensuring the safety of workers. It is important to be supportive of the program to encourage employees to participate in a wellness program. How do you entice workers to City Administration Committee Meeting July 28, 2004 Page 9 participate in a wide array of wellness program, which in the end would make the workforce safer? Mr. Olmetti encouraged and would appreciate any feedback from the Committee on the report or how to make the layout more user friendly or understandable. The Committee thanked Mr. Olmetti for his report. 2. Director's Report. HR Director Michell -Nunn reported on the following: Safety Program: All the members on Common Council, with the exception of one, were not here when the Work Environment Task Force (WETF) completed a workforce assessment. One of the recommendations from the workforce, one of the key areas, was safety. On those recommendations, the creation of the Health and Safety Coordinator came about. The Health and Safety Coordinator also does case management for workers' comp issues and works closely with the Controller's Office. Employee Picnic: The picnic will be held on Friday - September 24, 2004. 3. A Motion to Enter into Executive Session to Discuss Contract Negotiations HR Director Michell -Nunn asked that a request for an Executive Session, to discuss contract negotiations, be added to the Common Council agenda. K. Controller 1. Energy Performance Contract Controller Steve Thayer stated that the City has been approached by the Johnson Controls to look at Energy Savings Performance Contracting for the City. These are contracts that allow the City to make certain infrastructure improvements related to energy performance. The energy savings that are a result of the projects themselves usually pays the cost of the project or improvements. In this case, the company guarantees the savings. What usually happens is that the company comes in, looks at the City's facilities, and determines, based on the preliminary assessments, if there is a potential to do performance contracting. City Administration Committee Meeting July 28, 2004 Page 10 The Controller's Office is recommending that Johnson's Controls come in and do the preliminary assessment. There is no cost to the City at this point in time. Johnson Controls will come in and do the following: 1. Document City's objectives; 2. Develop list of facility improvement measures consistent with City's objectives; 3. Identify all sources of potential funding assistance - i.e. New York State Energy Research and Development Association (NYSERDA); 4. Develop preliminary cash flow analysis 5. Complete in assessment in 4 -6 weeks; 6. No cost to the City. Alderperson Cogan confirmed that if there were potential first savings then the City would go out to bid to hire a performance contractor and Johnson would competitively bid on that project. Alderperson Cogan stated that at the Ithaca Wastewater treatment Facility there is another energy savings project underway. The City must make clear that any energy savings projects that are underway that they would not get credit for. 2. Special Department Overview Department's Mission: Controller Thayer stated that the mission of The Controller's Office is to provide accurate, timely financial data and strong, secure accounting internal control structure to the community, City employees, Common Council and the Mayor. Department's Responsibilities: Controller Thayer stated that the Controller's Department is responsible for the following: Accounting, Budgeting and Reporting (i.e. maintaining central books of accounts; developing annual city budget; auditing expenditures, developing accounting procedures; internal control structure; preparing annual financial reports; overseeing external auditing; coordinating of central billing); Payroll /Accruals Time Administration (i.e. performing weekly payroll; maintaining weekly time accruals; preparing monthly /quarterly /yearly reporting; preparing retirement reports; printing /distributing W -2's and 1099); Labor Contract Negotiation Financial Assistance; Water /Sewer Joint Entity City Administration Committee Meeting July 28, 2004 Page 11 Administration (Ithaca Area Wastewater Treatment Plant (IAWWTP) Treasurer; develops and assists on water /sewer rates and budgets); Financial Computer System Supervision (oversees City's computer financial accounting system - MUNIS); Debt and Investment Program Management (i.e. performs all bonding for City; oversees investment of funds); Employee Benefits and Insurance Risk Management (i.e. oversees health, workers' compensation and liability insurance, and NYS retirement); Purchasing and Contract Administration (i.e. oversees all bidding of City contracts; establishes and maintains procurement policies and procedures; oversees purchase order activity; checks cuts annually; vendor coordination; Department of Labor prevailing wage reporting); Capital Program Administration (i.e. prepares and maintains capital project fund operations; assists with capital budgets); Meeting Staff Support (i.e. staff support for City Administration Committee, Board of Public Works, IAWWTP Special Joint Committee and support to many smaller committees). Department Narrative: Controller Thayer stated that the City is a 47 million dollar business that needs accurate and timely financial statements and data. To provide the accurate and timely financial statements and data, the department needs well - qualified and continuously trained staff, current and updated resources, and updated computer software. In the past, the department had more employees who helped with the financial activities with the City. The reduction in staff has affected, not the quality, but the timeliness of the financial data. As more requirements come down from the federal and state governments, the department has found it more difficult to do their jobs. It is very important to train staff properly and to keep staff well trained but the department is unable to do so due to the cuts in the staff development budget line. Staffing: Currently, the department has five individuals, with years of services to the City ranging from 1 to 26 years. The employees are hard working, dedicated and go above and beyond the call on a daily basis. Staffing has changed over the years. Until the early nineties, there was a full Purchasing Department with support staff and a City Purchaser. This department was folded into the Controller's Office due to retirements. Proposed Staffing Changes: Controller Thayer stated that a change in title to an accountant title is needed for the City Buyer to accurately reflect the actual work City Administration Committee Meeting July 28, 2004 Page 12 performed and a change in hours to 40 per week. Mr. Thayer stated that the department would experience a substantial blow with the retirement of the Administrative Secretary on December 31, 2004. The department would need to hire a replacement. Department Goals: To improve communication and timeliness of City financial data to Common Council, City Staff and the community; to include all funds on the MUNIS financial system; to account for the City assets as required by GASB 34; to close on a timely basis the annual financial data, to timely report all required financial data and reports; to improve financial software program use; to improve written accounting systems policies and procedures; to improve capital funds, trust and agency fund accounting systems; to improve the City internal control structure; to improve financial status; to improve efficiency in payroll and capital program and to maintain an open door policy. Financial Goals: To increase fund balance; to decrease overall debt load; to review staffing levels and make necessary changes; to be more efficient in staff spending and operations, to increase revenues and to decrease expenses. Department Challenges: To main a clean opinion on external audits; to maintain a AA3 Moody's bond rating; to hire administrative staff at the end of 2004; to improve city financial status; to implement GASB 34; to establish and maintain written accounting policies and procedures; to continuously improve financial operations; to "catch up" financially; to become proactive instead of reactive. Department Successes: Maintained City's Bond Rating at AA3; Continued to have an unqualified opinion (clean) on single audit; and improved municipal cooperation with outside entities. Wish List: Increase hours of two staff members to 40 hours /week; to increase funds for staff development, to improve financial software program; and to add one (1) additional staff accountant. The Committee thanked Mr. Thayer for his report. City Administration Committee Meeting July 28, 2004 Page 13 3. Controller's Report. Controller Thayer reported on the following: Sales Tax Revenue: The City has been meeting budget, which is about 6% increase over 2003 revenues. Over the last month, the City has seen a dip in the sales tax revenue. Down to about 5.1% over 2003 revenues. The Controller's Office will continue to monitor. State Budget: The State has not passed the budget. The Pension Reform has passed. Mr. Thayer was unsure what this would mean for the City. The pension payment date has been moved from December 15 to February 1. That means that our $3,000,000 payment is due February 1. However, the Retirement System will add on interest for that period of time. Mr. Thayer noted that all items are pending governor's signature on the actual legislation. Moody's Bond Rating: The City recently went through a re- rating for Moody's and maintained the AA3 rating with a negative outlook. Areas of concerned mentioned in the report were over the fund balance or the lack thereof, the high debt load and the reliance on sales tax revenue to balance our budget. BANS and Bonds: Would be issued in August. The City's has $7,200,000 in BANS with an effective interest rate of 1.61% and $6,200,000 in bonds that were sold with an effective interest rate of 2.96 %. Rates have increased over the past year and the deposit rates have increased as well. 2005 Budget Guidelines: Budget guidelines have been given to department heads for a 1% and a 3.5% increase. Budgets are due on August 1. Budget discussions will start after that. The Controller and the Mayor will meet with department heads and go through their budget. Council would be involved later. Fiscal Viability Team: The budget document is being revised. The Mayor has instituted a committee from the public that will also look at that document. City Administration Committee Meeting July 28, 2004 Page 14 L. Reports 1. Mayor's Report. Mayor Peterson reported on the following: Fiscal Viability Team: The City Committee met with the Public Team. Members of the public team consist of a variety of experience in dealing with City budget. The budget was given to the combined Committee to develop ideas. NYS Public Employees Labor Relations Association (PELRA). The conference was held July 26 -28. The conference covered contract negotiations, the Taylor Law and updated the participants on the current PERB laws and decisions. Budget Process: The Controller's Office is scheduling budget meetings with department heads. Department heads will meet with the Mayor and the Controller. The department heads are interested in looking into ways to utilize everyone's times during the October budget process. Nothing definitive. Capital Projects: The Mayor has no update at this time. 2. Sub- Committee Updates. None. 3. Council Members' Announcements Chairperson Berry stated that the Mayor regularly meets with Committee chairs. This Committee decided that all Common Council should receive a copy of the budget presentations. Chairperson Berry will get the presentations and forward them to Council. Chairperson Berry stated that there would be a "Meet the Mayor" forum at the Greater Ithaca Activities Center (GIAC) on Monday - August 2 - from 6:00 p.m. to 9:00 p.m. Traffic would be the topic of discussion. 4. Next Month's Meeting: August 25, 2004 City Administration Committee Meeting July 28, 2004 Page 15 L. Adjournment With no further business and on a motion by Alderperson Townsend, the meeting was adjourned at 9:00 P.M.