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HomeMy WebLinkAboutMN-CA-2008-07-01CITY ADMINISTRATION COMMITTEE Regular Meeting July 30, 2008 Members Present: Alderperson Coles, Alderperson Zumoff, Alderperson Clairborne, Alderperson Korherr (arrived at 7:09 p.m.), Alderperson Schuler, Mayor Peterson Council Members Present: Alderperson Myrick, Alderperson Tomlan, Alderperson Cogan, Alderperson Dotson Staff Present: Allen Green (YB Director), Bill Gray (Superintendent of Public Works), Rick Ferrel (Asst Superintendent of Public Works), Debra Parsons (City Chamberlain), Brian Wilbur (Fire Chief), Julie Holcomb (City Clerk), Dan Hoffman (City Attorney), Steve Thayer (Controller), Scott Andrew (Deputy Controller), 5chelley Michell - Nunn (HR Director), Denise Malone (HR Executive Assistant) Others Present: Members of the Public, Members of the Media Chairperson Coles called the meeting to order at 7:02 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 Chairperson Coles stated that Items 16.1 - Youth Council and Item 16.2 - National Water Fund will be moved after Item 11, Item 17.2 - Request to Amend Budget for Grant has been deleted from the agenda and Item 13.1 - Request to Amend Capital Project #469 Green Street Garage will be an Executive Session and has been moved after Item 19. City Administration Committee Meeting July 30, 2008 Page 2 4. Approval of Minutes Alderperson Zumoff made a motion to approve the minutes, with corrections, from the June 25, 2008 meeting. Seconded by Alderperson Schuler. Motion carried 4 -0. (Alderperson Korherr were absent from the vote.) (Alderperson Korherr arrived at 7:09 p.m.) 5. Statements from the Public Ashlee Martinez /Sarah Zipfel /Randy Martinez of Ithaca spoke in support of and asked Common Council to fund the Youth Council. The purpose of the Youth Council is to help give youth a voice in our community. Teens do not know that they have a voice. The Youth Council would help inform youth that they do have a voice and they can do something about things they care about. There has been a lot of violence in the community. If there was a Youth Council, it would give teens a sense of importance and leadership in the community. A community of involved youth is a powerful, meaningful community. Youth Council would involve teens civically while giving them a sense of importance, knowing that their City believes in them. Miranda Phillips and Tom Shelley representing Sustainable Tompkins, a local not for profit organization asked Common Council to support the National Water Trust Fund. This legislation would set aside federal dollars that States could receive for water infrastructure. Such a trust fund is important. Cities and States across the country are facing deteriorating water infrastructure. When, in many cases poses serious health risks such as sewage overflows and potential waterborne diseases. Federal dollars for water infrastructure repairs has been steadily dwindling. Under the current system, Federal funding has decreased by 65% since 1991. Securing these contributions is an annual struggle. The proposed Water Trust Fund would establish a dedicated sustainable source of public funds for water infrastructure repairs, which would have money available for water quality assessments, green infrastructure and research and development. Ms. Phillips & Mr. Shelley encouraged Common Council to support the Water Trust Fund resolution and to send the approved resolution to local congress people. They will be meeting with Congressman Arcuri during the August break and could personally deliver the resolution to Mr. Arcuri. Larissa Anderson of Ithaca spoke in support of the Youth Council. Two years ago, Ms. Anderson and other local youths spoke before Common Council. They expressed how they felt about City Administration Committee Meeting July 30, 2008 Page 3 incidents happening at school and around Ithaca. After talking with her siblings about continued violence at their schools, Ms. Anderson stated that nothing has improved. The Youth Council would be an avenue where teens' voices could be heard and incidences in the school could be addressed. Ms. Anderson asked Common Council to fund the Youth Council. 6. Employee Comments Julie Conley Holcomb, City Clerk, spoke in support of the Managerial Compensation Adjustment proposal before Common Council tonight. While Ms. Holcomb is not part of the affected employees, she wanted to support her colleagues and to reaffirm that recruitment, salary compression and moving members of Senior Staff through the pay scale from midpoint to maximum are real issues for management. Supporting evidence can be found in the recent department head searches regarding recruitment issues. Some department heads have spoken about how salary compression has affected their department. Management works diligently for the City, has a lot of responsibilities and spends a lot of hours at work and outside of work discussing City issues with the public. Ms. Holcomb encouraged Common Council to move something forward or create a plan that moves forward to address the issues in the managerial compensation adjustment proposal. 7. Common Council Response. None. 8. Workforce Diversity (WFD) Committee Update HR Director Michell -Nunn reported that the last department presented its diversity plan to the WFD Committee on Monday - July 28, 2008. Ms. Michell -Nunn stated that the WFD Committee gave a presentation at the Community Organization and Issues Committee. The WFD Committee is waiting direction on how to proceed with the department head Diversity Plan presentation at their respective Committees. Mayor Peterson and Chairperson Coles stated that this item will be discussed at the Mayor's meeting with Committee chairs. 9. Safety Committee Update. None. 10. Communication Committee Update. None. City Administration Committee Meeting July 30, 2008 Page 4 11. Common Council 1. Request to Amend 2008 Youth Bureau Budget Moved by Alderperson Clairborne. Seconded by Alderperson Schuler. WHEREAS, giving youth a voice in community decisions that affect them has been a valued aspect of the Youth Bureau programming since its inception in 1948, and WHEREAS, several Common Council members have recognized the value of re- establishing the Ithaca Youth Council, and WHEREAS, Youth Council has been a successful model for developing civic leaders in the Ithaca community and whose alumni include a former City mayor, current acting director of Planning & Development, and Ithaca City School District Board of Education members, and WHEREAS, an unfunded, 21- hour - per -week Youth Program Leader position currently exists on the Youth Bureau roster, and WHEREAS, the position would begin on September 15, 2008, and WHEREAS, the Youth Bureau is committed to raising matching dollars to help fund the position in the 2008 budget and in future budgets, and WHEREAS, the amount committed from the 2008 contingency fund is $3,477; now, therefore be it RESOLVED, That a 21- hour - per -week Youth Program Leader position on the Youth Bureau roster be funded conditional on matching funds for the year 2008 and all subsequent years, and be it further RESOLVED, That the Ithaca Youth Council is re- established as an advisory body to Common Council, and be it further RESOLVED, That contingent upon raising the necessary matching funds, the Common Council hereby amends the 2008 Youth Bureau budget as follows: City Administration Committee Meeting July 30, 2008 Page 5 Increase anticipated revenue: A7310- 2070 -01200 Contributions A1990 -5000 Increase expenses A7310- 5110 -01200 A7310- 9030 -01200 A7310- 9040 -01200 A7310- 9060 -01200 A7310- 9010 -01200 Unrestricted Contingency Staff FICA Worker's Compensation Health Insurance Retirement Total $3,477 $3,477 $4,932 $ 377 $ 197 $1,054 $ 394 $6,954 After discussion, Alderperson Zumoff made a motion to amend the 2nd Resolved as follows: "RESOLVED, That the Ithaca Youth Council be re- established as an advisory body to Common Council, and be it further ". After further discussion, Alderperson Zumoff withdrew his motion. Alderperson Clairborne made a motion to amend the 4t" Whereas and the 2nd Resolved as follows: WHEREAS, re- establishment of the Ithaca Youth Council as an advisory body to Common Council is under consideration currently by Common Council via its Community and Organizational Issues Committee, and RESOLVED, That the Ithaca Youth Council is re- established as an advisory body to Common Council. Seconded by Chairperson Coles. Motion carried 5 -0. Alderperson Korherr made a motion to amend the 5t" Whereas as follows: WHEREAS, The position would not begin before September 15, 2008, and only in the event that the ordinance establishing the City of Ithaca Youth Council relating to this resolution is approved by the full Common Council. Seconded by Chairperson Coles. Motion carried 5 -0. City Administration Committee Meeting July 30, 2008 Page 6 A vote on the main motion as amended resulted as follows: Passed unanimously. 2. Support of National Water Trust Fund Moved by Alderperson Korherr. Seconded by Alderperson Clairborne. WHEREAS, the City of Ithaca's water treatment plant was constructed in 1903 and its last major upgrade was completed in 1951, and WHEREAS, city workers with considerable ingenuity, resourcefulness, intelligence and dedication have maintained the plant's ability to treat water and meet changing water quality regulations, and WHEREAS, regardless of these efforts, the city will no longer be able to meet changing and improving potable water regulations, and WHEREAS, projected costs for the two city water options available to the Mayor and the Common Council are in excess of $20,000,000, and WHEREAS, the tax burden for home and other property owners in the City of Ithaca has reached beyond what working families, poor families and retired people who daily struggle to stay in their homes are able to bear, and WHEREAS, many of our nations water pipes and sewers were installed in the early part of the 20th century, some as for back as the Civil War; and WHEREAS, as water systems age and population grows, more and more leaks develop and sewage overflows into our streams, rivers, lakes and oceans, creating serious public health hazards; and WHEREAS, public health agencies issued more than 20,000 warnings against swimming at beaches on U.S. coasts in 2005, and a majority of beach closings are due to sewage overflows and malfunctioning sewage plants; and City Administration Committee Meeting July 30, 2008 Page 7 Whereas, the National Research Council recently warned that we should expect more water -borne disease outbreaks if there are not substantial investments made to improve our water pipes and systems; and WHEREAS, there is currently a shortfall of more than $22 billion per year between the funds available and what is needed to keep water safe for human and environmental health; and WHEREAS, the federal government has cut the main source of funding for clean water year after year; and WHEREAS, the spirit of the Clean Water Act and Safe Drinking Water Act are threatened by lack of funding for water infrastructure; and WHEREAS, according to a recent poll, nine out of ten Americans believe that clean and safe water is a national priority that deserves federal investment; and WHEREAS, there are federal trust funds for other major national investment needs like highways and airports, yet the federal government has yet to establish a trust fund to protect something all people need in order to survive, that is, water; now, therefore, be it RESOLVED, That the City of Ithaca's Mayor and Common Council endorse a proposal for a trust fund for clean and safe water based on the following principles: - Pollution prevention and drinking water source protection; - Water conservation by the largest water users, including agriculture and industry, - Public participation and accountability for public officials; - Access to affordable water; - Public funds for public utilities; - Environmentally sound use of our water resources; - Developing and implementing innovative, environmentally sustainable infrastructure, appropriate for local conditions; - Appropriate fees for industries that pollute our water, City Administration Committee Meeting July 30, 2008 Page 8 and, be it further RESOLVED, That copies of the resolution be sent to Congressman Earl Blumenauer from the State of Oregon, to New York State Congressmen Michael Arcuri and Maurice Hinchey, and to New York Senators Charles Schumer and Hillary Clinton. After discussion, Alderperson Schuler made a motion to amend the 3rd and 4t" Whereas as follows: WHEREAS, regardless of these efforts, the City will no longer be able to meet changing and improving potable water regulations without either replacing the existing Water Plant or joining the Southern Cayuga Lake Intermunicipal Water Commission, and WHEREAS, projected costs for either one of these water options available to the Mayor and the Common Council cost more than $20,000,000, and Seconded by Alderperson Korherr. Motion carried 5 -0. A vote on the main motion as amended resulted as follows: Passed unanimously. 12. Regular Reports from Departments Reporting to CA - City Attorney's Office The Committee welcomed City Attorney Dan Hoffman to the meeting. Mr. Hoffman distributed the department's Summary of Major Areas of Attention. Some major areas of attention are • Administrative: The Executive Assistant position, which was vacant since August 2007, was filled in January 2008. This position will become vacant again on August 15, 2008 due to a lateral transfer but will be filled by a previous employee transferring from another department. In July 2008, one Assistant City Attorney's position became vacant. The Attorney's Office in conjunction with the HR Department has advertised this position with a closing date for applications of August 15. A temporary attorney will be hired to help with the workload until this position has been filled. The department has hired interns from the paralegal programs from TC -3, Cornell University and Syracuse City Administration Committee Meeting July 30, 2008 Page 9 University. This year the department worked with the Youth Bureau to hire an intern from the high school. • Meetings (All): Department staff prepares and attends many City meetings including Common Council, Board of Public Works, Department Head, and Senior Staff. The Attorney's office has regular staff meetings where staff has the opportunity to address items of concern. • Litigation & Notices of Claim (Dan; new attorney): Some cases handled by this department are the overtime lawsuit against the Police Department (settled), Art. 78 case against the Board of Zoning Appeals by NYSEG (resolved), Eminent Domain - Green Street Garage v. City - City's appeal is pending /motion on fees expected; Liaison with special counsel handling personal or property injury claims are sometimes handled by the insurance carrier. • FOIL request & appeals (Khandikile): At least 5 -7 requests come in weekly. Information requested can be for multiple departments. Khandikile ensures that no confidential information is released. • Review, interpret and draft local laws, ordinances, resolutions, policies & procedures (Dan & Khandikile): Pending examples are Regulation of outdoor smoking, Youth Council, Common Council procedures, Taxicabs (comprehensive update of ordinance), Zoning (off street parking, home occupants), Standards of Conduct /Respectful Engagement, Encroachment policy, State- mandated workplace violence prevention program. • City Court /Enforcement of City Code Provisions (Bob): The part -time Assistant City Attorney works in City Court prosecuting violations of City Code. • Labor Relations /Employment (new attorney): The new attorney will focus on labor contracts, termination hearings from employment, grievances, arbitration and Section 207 issues. • Real Property (Dan): Dan handles encroachments, easements, licenses, leases, and the purchase and sale of real property. City Attorney's Office Diversity Plan: The Attorney's office consists of five positions (2 full - time attorneys, 2 part -time attorneys and 1 support staff). Currently, there is one vacant full - time attorney. There are two men and two females of which one is a person of color. The department hires interns from different colleges and university. This year, the intern program was expanded to work with the Youth Bureau in obtaining a high school student. To work in the Attorney's Office, employees need specialized skills. There are not entry level positions. The turnover rate is usually low. Physically, there is no room to expand. City Administration Committee Meeting July 30, 2008 Page 10 Steps taken to contribute to or enhance diversity: The department has shown flexibility in work schedules by allowing employees to work at home and allowing kids in the office on no school days. When having food events, the department takes into account the dietary concerns of staff. The department has provided support to an employee dealing with immigration bureaucracy. Mr. Hoffman stated more is needed to be done on regular feedback on strengths and needs. Mr. Hoffman expressed a desire to learn more about retention strategies. The Committee thanked City Attorney Dan Hoffman for his report. 13. Clerk's Office 1. Request to Amend 2008 Budget Moved by Alderperson Clairborne. Seconded by Alderperson Schuler. WHEREAS, Common Council, as part of the 2008 City Budget, included $15,000 in the Restricted Contingency account for the purposes of funding a public information initiative, and WHEREAS, the Public Information Officer Team (PIOT) is requesting that the funds be released from Restricted Contingency for the purposes of funding two intern positions to work on the website revision project and the community newsletter project, and other related projects; now, therefore, be it RESOLVED, That Common Council hereby authorizes the City Controller to transfer an amount not to exceed $15,000 from Restricted Contingency Account #A1990 to account # A1316 -5435 to fund two intern positions and other related public information project costs. A vote on the resolution resulted as follows: Passed unanimously. City Clerk Holcomb reported that the community newsletter will be released on Monday - August 4, 2008. Ms. Holcomb commended the interns in her office on a City Administration Committee Meeting July 30, 2008 Page 11 job well done. The newsletter will be distributed to employees, the media and several identified distribution sites. 14. Safety Committee 1. Request for Funding CPR Training Moved by Alderperson Korherr. Seconded by Alderperson Clairborne. WHEREAS, the Safety Committee of the City of Ithaca is actively investigating the acquisition and distribution of Automated External Defibrillation devises (AED) for use by City staff at City facilities in a Public Access Defibrillator (PAD) program, and WHEREAS, a prerequisite of a PAD program is personnel trained in the use of AED devises, and WHEREAS, the City and the Safety Committee recognizes the benefit of training individuals in Cardio Pulmonary Resuscitation (CPR) and in the use of AED devises, techniques which save lives whether at work or privately, and WHEREAS, the City -wide Safety Committee has determined by survey, an increasing interest among the workforce in being trained in CPR /AED; now therefore be it RESOLVED, That an amount not to exceed $1,800.00 is approved to provide said CPR /AED training for the remainder of 2008, and be it further RESOLVED, That employees, upon approval by supervisor, shall be released during work hours to attend CPR /AED training, and be it further RESOLVED, That Common Council hereby transfer funds in an amount not to exceed $1800.00 from Account 1990 Unrestricted Contingency to Account A1430- 5440 Human Resources Staff Development for the purposes of funding said CPR training; and be it further City Administration Committee Meeting July 30, 2008 Page 12 RESOLVED, That they payment is contingent upon the signing of a Memorandum of Understanding with the appropriate Collective Bargaining Units. A vote on the resolution resulted as follows: Passed unanimously. 15. Youth Bureau 1. Request to Amend 2008 Youth Bureau Budget and Roster Moved by Alderperson Korherr. Seconded by Alderperson Schuler. WHEREAS, the Ithaca Youth Bureau has received $27,074 in new funding from the Ithaca city School District, and WHEREAS, the Urban /Rural Adventure Program is a new initiative designed to build friendships and promote cross - cultural understanding among 288 fifth graders from ICSD attending middle school, and WHEREAS, the Youth Bureau needs to increase staffing to run a program of this scope, and WHEREAS, the Youth Bureau roster already includes an unfunded 17.5 hour Youth Program Leader position, and WHEREAS, this proposal is budget neutral; now, therefore, be it RESOLVED, That the Common Council hereby amends the 2008 Youth Bureau budget and roster as follows: • Fund the 17.5 hour Youth Program Leader position to begin September 8, 2008 and • Amend the 2008 Youth Bureau budget to account for said funding as follows: Increase anticipated revenue: City Administration Committee Meeting July 30, 2008 Page 13 A7310- 2350 -01221 Increase expenses: A7310- 5110 -01221 A7310- 5435 -01221 A7310- 5460 -01221 A7310- 9030 -1221 A7310- 9040 -1221 Salary Contracts Program Supplies FICA /Medicare Workers' Comp A vote on the resolution resulted as follows: 16. Human Resources (HR) Department 1. Managerial Compensation Adjustment Proposal $10,830 $4,747 $2,200 $1,937 $679 $1,267 Passed unanimously. HR Director Michell -Nunn updated Common Council on the managerial salary adjustment proposal. Last year during the budget process, the HR Department proposed a managerial compensation adjustment. At that time Common Council set aside $20,000 to begin addressing the management compensation issues. This proposal was developed to address three issues that compound each year. The first issue is that of compression. Department heads' and deputies' compensation increases have lagged considerably in comparison to the unionized increases. Contributing to this lag was a 0% increase in one year (senior staff volunteered to forgo an increase in an attempt to reduce the number of layoffs in 2003). The second issue deals with retention of longer -term managerial staff. In 1999, a compensation study was conducted for management. At that time, Common Council agreed to move all incumbents who were not at the minimum salary of the new plan, to the minimum. The consultant informed the City that individuals with 7 -10 years of experience would be at or near the midpoint of the range. The City was not in a position to make those adjustments, thus resulting in an abnormal clustering. The third issue deals with recruitment. As a result of the clustering around the minimum and the City's practice of not paying new hires more than current City Administration Committee Meeting July 30, 2008 Page 14 employees in equivalent positions, the City has not been able to take full advantage of the flexibility in the hiring range. This has resulted in less competitive salaries The existing compensation plan does not represent the current market value of positions. This is a direct result of the plan increasing at an annual rate below the market rate for several years. The proposal does not address this issue but it reinforces the need to do a compensation study in the near future. The HR Director is requesting the Common Council adopt the full plan as proposed. There are alternate approaches that would reduce the financial impact, such as a phased in process using all three criteria. The Committee discussed the proposal. Comments were made regarding the proposal from supporting the plan as outlined to understanding the problem in theory but having difficulty in supporting the proposal. Alderperson Korherr talked about the status of the CSEA Compensation Study. The study was conducted about 3 -4 years ago and the final results have yet to be received. Alderperson Korherr is concerned about the negative morale that would result from approving this proposal. Alderperson Korherr suggested setting the cap at $3,000 and allocating increases for management in excess of that amount. For example, the first person is $3,871, the excess amount of $3,000 would be $871. If done this way, it would cost about $34,658. Alderperson Cogan suggested, and will support, taking the $20,000 and applying it proportionately to the appropriate employees for 2008. Alderperson Myrick suggested looking at salaries of positions that have recruitment issues. Chairperson Coles suggested funding the entire amount as suggested by the HR Director of about $70,000. The Committee discussed ways to address the egregious problems and suggested that the HR Director and Controller return with cost for the different scenarios suggested by Alderpersons Korherr, Cogan and Myrick. City Administration Committee Meeting July 30, 2008 Page 15 2. Director's Report. HR Director Michell -Nunn reported on the following: Employee Recognition Picnic: The picnic is scheduled for September 19, 2008. The Mayor encouraged Common Council members to attend the picnic and plan to serve lunch to the employees. Ms. Michell -Nunn stated that nominations are being accepted for the Annual Recognition Award and the Diversity and Inclusion Award for employees meeting the criteria. The Mayor will soon be asking Common Council members for volunteers to review the Annual Recognition Award nominations. DPW Unit Contract: The contract has been settled, signed and currently being implemented. Ms. Michell -Nunn requested an Executive Session for the upcoming Common Council meeting to discuss collective bargaining agreement. Department Head Searches: The City is moving forward on three department head searches. Diversity Consortium of Tompkins County: The City has been involved with this organization since its inception. The organization is in the process of becoming a 501(c)3. The Diversity Consortium consists of local employers and businesses that are interested in creating a more diverse and inclusive environment in their workforce as well as in the community. Last spring the Consortium had two training sessions on Outreach and Recruitment and Diversity in the Workplace. During the upcoming fall, training will be conducted on the Business Case for Diversity. The Consortium is working with NYS Affirmative Action Association to bring workshops to Ithaca. Diversity Roundtable (2009): The 2009 Diversity Roundtable will be on May 7, 2009. This will be a full day event with speakers coming from all over the country to talk to our community about successes and tools to use to be more effective in our diversity initiative. 17. Finance /Controller 1. Capital Project Cost Increases (Discussion) Chairperson Coles stated that this discussion was initiated by the Mayor and the Controller out of concern for the capital project cost overruns. Ms. Coles asked City Administration Committee Meeting July 30, 2008 Page 16 Controller Steve Thayer to lead the discussion on cost overrun and possible ways for Common Council to deal with the problem. Since most of the City's capital projects come from the Department of Public Works and the Fire Department, the Mayor invited to join this discussion Fire Chief Brian Wilbur, Superintendent of Public Works Bill Gray and Assistant Superintendent of Public Works (S &F) Rick Ferrel. Controller Thayer reported that as part of the 2008 budget, the City authorized $3,433,000 in capital projects. Since then to July 2008, the City has authorized an additional $5,041,950. The additional amount includes $56,000 or 140% increase to the dock project and $280,000 or 102% increase to the Southwest neighborhood project as well as the following coming in higher than cost: the fire vehicles came in 18% higher, DPW equipment came in 11% higher, Wastewater Treatment Plant improvements came in 100% higher, cold storage building came in 31% higher, GIAC building came in 79% higher, the Workplace Violence Program came in 100% higher and Collegetown urban plan came in 20% higher. The goal of the City is to reduce its debt load. When 2009 Budget Requests were submitted, the Mayor and the Controller looked for ways to do this. One way to reduce the debt load is by paying off more than is issued. This will not happen in 2008. The reason for this discussion is to figure out what is driving the increased cost. Controller Thayer stated that we must look at why this is happening. In 2008, it is a combination of a weak economy, an increase in cost, a problem with estimating our projects, a time lapse between the estimate, the approval and the bidding for actual cost of the project or it may be the wrong time to bid. As we move forward into the 2009 budget season, what can be done to alleviate or minimize the City's debt load? Some suggestions made by Mr. Thayer were better estimates, cost escalators in tough markets like we currently have and build those into the estimates, find ways to reduce the time lag between the estimates and the bidding of the actual projects, defer projects, and only look at emergency projects. Mayor Peterson stated that the capital project list for the budget was shared with Senior Staff. The Capital Projects Committee received requests for $6,000,000 but only $2,300,000 of the requests were recommended by the Committee. City Administration Committee Meeting July 30, 2008 Page 17 Fire Chief Brian Wilbur reported that he attended the Town of Ithaca meeting where they voted to adjust their budget to approve the higher amount for the fire engines. Alderperson Korherr asked that if the City could reserve an average percentage, excluding GIAC and a couple of other big items, could an additional layer of contingency be assigned to capital projects. We cannot project the cost of gas, labor, transportation or managing funds that would be expended in 2009. Would adding a 10% contingency to the budget as a buffer be a way to absorb these costs in the future? Mayor Peterson stated that many projects as designed already have a contingency built into them. Alderperson Korherr stated that this would be in addition to that built in contingency. Assistant Superintendent of Public Works (S &F) Rick Ferrel explained how he arrived at the amounts in his budget requests. Mr. Ferrel stated that a lot of guess work is used in putting together a budget six (6) months in advance. Mr. Ferrel gave an example of how rapidly prices change. In June 2008, a ton of asphalt cost $56.00; in July it cost $69.25 and in August it cost $80. Superintendent of Public Works Bill Gray stated that they deal with things that are sometime predictable such as the cost of steel and cement, which follows the international markets. Mr. Gray has tried to provide accurate amounts in his budget. It is difficult to do when bidders rarely agree on what the project should cost. Mr. Gray gave an example of the bids for Thurston Avenue Bridge Construction project. The City estimated a cost of $8,000,000. 7 -8 bids were received. The highest bid was 50% higher than the estimate. Whose bid was right? Fire Chief Brian Wilbur talked about the high cost and why. Fire apparatus manufacturers he has dealt with throughout his career don't exist anymore. In 2010, a manufacturer in Detroit will no longer build motors for fire trucks due to the changes in emissions requirements and space constraints. The effort going into specifying a fire truck is substantial. The primary organization that stipulates requirements for fire trucks is the National Fire Protection Association. They write the standards for fire trucks and the requirements change every year. It is difficult to give an accurate estimate in May of what something would cost in 2009 especially when you don't know what will change. City Administration Committee Meeting July 30, 2008 Page 18 Alderperson botson suggested shifting the proportion of how we spend money because of the differences in cost and looking at the lag time between when projects are approved and when the funds are actually spent. Controller Thayer and Chairperson Coles have discussed ways to reduce the cost overruns. There are a number of problems with estimating. One is the way estimates are prepared. For instance, on the estimate for the dock, instead of thinking the project through on what kind of dock it would be, an estimate was solicited from someone who builds docks for homes. In some departments, estimates are prepared without input from an engineer. There should be a formal process where departments without engineers would be assisted by engineers in preparing their estimates. Estimates are usually rough estimates and are not close to the actual cost. Mr. Thayer stated that there is a requirement to spend the money once it has been approved and issued. It is important to follow through on these projects and make sure that they are moving forward in a timely manner. Capital projects should come with a one year limit. If after a year the capital project has not moved forward or started, it would have to be reconsidered because of the types of increases as previously mentioned. No new capital project after the budget unless it is an emergency. Each capital project should be assigned to someone from each department involved so we know who owns the project and who will see it through to completion. Other ways to reduce the cost overruns is by getting a good accurate cash flow analysis on capital projects. It has been successfully done on some projects. Mr. Thayer suggested improving the time between stages on when a capital project has been conceived, approved and completed. Alderperson Clairborne asked what could be done internally. Should a policy be approved giving the fiscal manager the authority to make sure these practices are followed? Alderperson Clairborne stated that requests usually come to Common Council one at a time and suggested getting a running list of all approved projects. Ms. Coles suggested forming a sub - committee to continue discussing this topic. The committee will consist of the Mayor, the Controller, the Fire Chief, the City Administration Committee Meeting July 30, 2008 Page 19 Superintendent and members of Common Council. Recommendations from this committee will be shared with Senior Staff and all of Common Council. Chairperson Coles thanked everyone for their participation and comments. 2. Amend Budget for Community Celebration Grants Moved by Alderperson Zumoff. Seconded by Alderperson Schuler. WHEREAS, Tompkins County recently notified the City of $8,000 in grant funds from the County to the City for Community Celebration Funds, and WHEREAS, the $8,000 in funds would need to be disbursed to the following organizations /events /projects: Race Liberation Alliance $2,000 2007 and 2009 Lunar New Year Festival $3,000 Latino Heritage $2,000 American, Folk Music Workshop $1,000 now, therefore, be it RESOLVED, That Common Council hereby accepts the $8,000 in Community Celebrations Grant funds from Tompkins County and amends the 2008 Budget to account for said grants as follows: Increase Revenue Accounts: A1012 -2379 County Contribution /Celebrations $8,000 Increase Appropriation Accounts: A1012 -5435 Community Service Contracts $8,000 A vote on the resolution resulted as follows: Passed unanimously. City Administration Committee Meeting July 30, 2008 Page 20 18. Attorney's Office 1. Executive Session Alderperson Schuler made a motion to go into Executive Session to discuss possible litigation. Seconded by Alderperson Clairborne. Motion carried 5 -0. Alderperson Korherr made a motion to close Executive Session. Seconded by Alderperson Clairborne. Motion carried 5 -0. Chairperson Coles stated that no action was taken in Executive Session. 2. Reauest to Amend Capital Pro iect #469 Green Street Garage Moved by Alderperson Schuler. Seconded by Alderperson Zumoff. WHEREAS, as a result of a recent court award in the Goldberg v. City of Ithaca eminent domain case, the cost of property acquisition for the Green Street Garage rehabilitation project has increased significantly, pending appeal of said award by the City, now therefore be it RESOLVED, that Capital Project Account #469 is hereby increased in an amount not to exceed $500,000; and be it further RESOLVED, that funds necessary for said amendment be derived from an advance and later repaid by the issuance of serial bonds. A vote on the resolution resulted as follows: Ayes (3): Coles, Schuler, Zumoff Nays (2): Clairborne, Korherr Motion Passed 3 -2. City Administration Committee Meeting July 30, 2008 Page 21 19. Controller's Office 1. Controller's Report. Controller Thayer reported on the following: Budget Development (2009): Preparation is well underway for the 2009 budget. Department budgets are due August 1St. Capital Review Committee has met and completed their recommendations. The recommendations will be forwarded to the Mayor. Sales Tax Revenues (2008): Sales tax revenues are up 12% overall. Payments through May were up about 79% or $341,000. The reason for the increase is that the City received a positive adjustment from the State and the Stimulus package was put forth. Overtime Cost: The City is on pace to be about $900,000 over the budgeted amount of $814,000. Health Insurance Cost: Health insurance cost continues to rise. Currently, the City is on pace to exceed the budgeted amount of $6,100,000. The renewal for 2009 is due in September. Cost of Operations: The cost of operations is increasing significantly. The City's CPI is at 5.8 %. Overall for the year, the City is at 4.93 %. Bonds: The long term bonds were sold for a little over 4 %. The short term bonds sold for less than 3 %. Fuel Cost: Fuel cost continues to climb. The City budgeted $361,000 and is on pace to be about $100,000 over. State Budget: The Controller's Office is monitoring to see if there will be a negative impact on the City because of the problems with the State budget. State Aid will be cutting agency cost by about another 7 %. Cornell University: The City received the voluntary contribution of $1,138,000 from Cornell University. City Administration Committee Meeting July 30, 2008 Page 22 TCAT Budget: TCAT requested an increase of 9.9% per partner or $75,000 over 2008 levels. The increase is due to the cost of labor and fuel. In addition, TCAT is requesting $56,586 for the capital component. This is a $50,000 increase over 2008 for bus replacements and capital improvements. 20. Reports 1. Mayor's Report. None. 2. Sub- Committee Updates. None. 3. Council Members' Announcements. None. 4. Next Month's Meeting: August 27, 2008. 21. Adjournment With no further business and on a motion by Alderperson Korherr, the meeting was adjourned at 10:55 p.m.