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HomeMy WebLinkAboutMeeting Notes 6-29-2016 1 BUDGET COMMITTEE Draft Meeting Notes - June 29, 2016 Committee present: Eric Levine - Chairman, Bill Goodman, Pat Leary Staff present: Mike Solvig, Judy Drake, Jim Weber Others present: Pam Bleiwas Meeting was called to order at: 12:03 p.m. AGENDA ITEMS: • Review and approve meeting notes from May 4, 2016 and May 25, 2016. Committee members reviewed and approved the revised meeting notes from May 4, 2016, and the meeting notes from May 25, 2016. • Review Five-Year Capital Improvement Plan. The Committee reviewed an updated CIP schedule received from Public Works. Total estimated costs for the CIP for Fiscal Years 2017 - 2021 are presented on the schedule shown below: INFRASTRUCTURE 2017 2018 2019 2020 2021 TOTAL WATER INFRASTRUCTURE 1,900,000$ 1,475,000$ 1,175,000$ 950,000$ 1,350,000$ 6,850,000$ SEWER INFRASTRUCTURE 500,000 800,000 500,000 500,000 500,000 2,800,000 STORMWATER DRAINAGE - - 250,000 250,000 250,000 750,000 ROAD IMPROVEMENTS 700,000 800,000 800,000 1,500,000 800,000 4,600,000 TOWN FACILITIES 100,000 500,000 400,000 - 600,000 1,600,000 PARKS & TRAILS 160,000 140,000 100,000 - - 400,000 TOTAL ANNUAL COST 3,360,000$ 3,715,000$ 3,225,000$ 3,200,000$ 3,500,000$ 17,000,000$ FUNDING SOURCE: - Current Year Revenue 1,236,000$ 2,220,000$ 1,350,000$ 1,450,000$ 1,250,000$ 7,506,000$ - Grants & Donations 324,000 20,000 - - - 344,000 - New Long-Term Debt 1,800,000 1,475,000 1,875,000 1,750,000 2,250,000 9,150,000 TOTAL FUNDING 3,360,000$ 3,715,000$ 3,225,000$ 3,200,000$ 3,500,000$ 17,000,000$ Of the $17,000,000 total estimated project costs, $7,506,000 would be financed with current year revenues/fund balance, $344,000 with grants and donations, and the remaining $9,150,000 by the issuance of new long-term debt. Capital projects scheduled for 2017 include the following: - PINE TREE WATER TANK REPLACEMENT - Constructed circa 1954, the existing steel tank is 34’ in diameter by 70’ in height, with a storage capacity of 200,000 gallons. This tank currently supplies 450 customers with an average of 160,000 gallons of water per day. Past inspections have indicated the need for increasing levels of maintenance. Originally scheduled for replacement in 2016 with a new tank of similar size and an estimated cost of $600,000, this project was postponed after Cornell University announced their intention to rebuild and expand the Maplewood Apartment complex and eventual expansion of the East Hill Plaza complex, both of which are served by the Pine Tree Water Tank. Cornell’s planned expansion of the Maplewood Apartments would triple the number of residents in the complex to 887 beds in a mix of 453 1, 2 & 3-bedroom units. 2 An analysis of expected water usage showed that the capacity of the new water tank as planned would be unable to serve the number of residents in the expanded complex. The Town will work with Cornell and the project developer to determine what capacity the new water tank will need to be, as well as Cornell’s monetary contribution to this project. At this time it is expected that the new water tank will require a minimum capacity of 500,000 gallons to meet the expected demand. The estimated cost of this project is $900,000, which will be funded by issuing $600,000 in new long-term debt, the same as was budgeted in 2016, with Cornell University expected to contribute the additional project cost. - WATER MAINS - Total cost for Water Main improvements for Fiscal Year 2017 is estimated at $1,000,000. Water main replacement projects currently scheduled include Cliff Street - $850,000, and the demolition of the abandoned Cliff Street Pump Station - $150,000. These projects will also be financed by issuing new long-term debt. - SEWER AND MANHOLE REHABILITATION - These on-going maintenance projects will reduce water infiltration into aging sewer lines and manholes. The amount of $300,000 will be budgeted, which will be financed from current year revenues. - 2017 ROAD IMPROVEMENTS – The Perry Lane Improvements is a reconstruction project to address deteriorating pavement and base conditions. This project will include removal of the existing pavement and base, installation of new base materials and asphalt overlay, and various drainage improvements. The estimated cost of this work is $500,000, which will be funded from current year revenues. The Culver Road Improvements is a mill-and-fill project to address deteriorating pavement conditions. The estimated cost of this work is $200,000, which will be funded by issuing new long-term debt. - TOWN FACILITIES – Upgrade and expand the Fluids Storage Area at the Public Works facility at an estimated cost of $100,000, which will be funded from General Fund current year revenues. - PARKS & TRAILS - Projects for 2017 include the replacement of playground equipment at Grandview Park - $50,000; and repair of the large culvert under the South Hill Trail at Burns Road - $110,000. Budgeted in the General Fund, these projects will also be financed with $136,000 in current year revenue/fund balance, and $24,000 in NYS grant funding. • Discuss 2017 Ithaca Town Budget process. Mr. Solvig informed the Committee that budget worksheets will be distributed to department heads in early July, to be returned by July 31. A first draft of the Preliminary 2017 Ithaca Town Budget will be reviewed by the Budget Committee at the August meeting. The first Town Board Budget Meeting is scheduled for Thursday, October 6. The Committee will review the Five-Year Capital Improvement Plan / 2017 Capital Budget with the Town Board at the July Study Session. • Review and Discuss Preliminary Public Works Department Staffing Plan for 2017 - 2020. This item was referred to the Budget Committee by the Personnel & Organization Committee at their June 15 meeting. Judy Drake and Jim Weber reviewed the current staff levels of the Public Works Department, and presented the preliminary plan to increase staff from the current level of 30.75 FTE’s to 37.0 FTE’s in FY-2020. Mr. Weber explained that additional maintenance duties, such as responsibility for the new Warren Road and Hanshaw Road sidewalks, and the Pine Tree 3 Road walkway/bridge currently under construction, make it increasingly difficult to meet the Town Board’s expectations with the current staff levels. The preliminary staffing plan includes the following changes/additions: (costs in current year $$) • FY-2017 - Add one (1) new position: Create and fill the new position of Maintenance Supervisor. Annual cost: $57,300 + benefits. • FY-2018 - Add two (2) positions: Add and fill one (1) additional Working Supervisor and one (1) additional Laborer. Annual cost: $97,600 + benefits. This would create an additional full crew, increasing the number of full crews from three to four. • FY-2019: Increase current Administrative Assistant I (Information Aide) position from part- time, 30 hours per week to full-time, 40 hours per week. Additional annual cost: $10,200. • FY-2020 - Add three (3) positions: Add and fill one (1) additional Motor Equipment Operator and two (2) additional Laborers. Annual cost: $130,600 + benefits. This would create a specialized crew responsible for sidewalk/trails/parking lot snow removal in the winter, and for trail maintenance and road signage/striping/crack-filling during the other seasons. Mr. Weber explained that having four full crews would allow Public Works to begin performing on a proactive “preventive maintenance” basis as opposed to the reactive “emergency repair” basis that is too common today. Pat Leary commented that as the Town expands, sidewalks and walkability will require planning for more maintenance, which requires the staff to provide the service. Ms. Leary also stated that funds expended on additional staff should not be viewed as just a liability. The estimated cost for implementing this plan (not including benefits) is shown below: 2017 2018 2019 2020 Based on Current Year Wages: Maintenance Supervisor 57,300$ 57,300$ 57,300$ 57,300$ Working Supervisor - 57,300 57,300 57,300 Motor Equipment Operator - - - 50,000 Laborer - 40,300 40,300 120,900 Admin. Asst. I (Information Aide)- - 10,200 10,200 ANNUAL INCREASE IN WAGES 57,300$ 154,900$ 165,100$ 295,700$ Current Year Wages plus 2% annual inflation: Maintenance Supervisor 58,446$ 59,615$ 60,807$ 62,023$ Working Supervisor - 59,615 60,807 62,023 Motor Equipment Operator - - - 54,122 Laborer - 41,928 42,767 130,866 Admin. Asst. I (Information Aide)- - 10,824 11,040 ANNUAL INCREASE IN WAGES 58,446$ 161,158$ 175,205$ 320,075$ POSITION Judy stated that this plan was a concept and that each year staffing will be discussed during the budget process. The 2017 personnel budget will be prepared with adding the Maintenance Supervisor position. 4 Ms. Drake reported that the P&O Committee had directed her to also work with other Town departments on a five-year staffing plan. This plan will hopefully be ready for the July P&O Committee meeting. • Preliminary Design Services for East King Road (Michigan Hill) Park & Trail. This item is a follow-up from the May 25 Budget Committee meeting, and was discussed at the June 27 Town Board Study Session. Mike Smith of our Planning Department contacted the engineering firm of T. G. Miller and discussed fees for preliminary design work for the East King Road (Michigan Hill) Park. The fee for Preliminary Design work would be $4,500 and would take approx. two months to complete. They would prepare two preliminary layout designs with grading plans and estimated construction costs for the Town to review. T. G. Miller also provided the fee for preparing construction documents, which would be $11,600. At this time the Town will move forward with the Preliminary Design work. A resolution approving this work will be on the agenda for the July 11 Town Board meeting. Funding will come from the Town Parks budget in the General Fund, account A7110.403 - Consulting Services. The Town had budgeted $20,000 in 2016 to hire a consultant for design services for the Forest Home Walkway between Warren Road and Forest Home Road, but the unexpected staff changes in our Engineering Unit will delay that project for at least a year. • Discuss Purchase of New Fire Pumper Truck by City of Ithaca. Mr. Solvig reported that the City of Ithaca is planning to purchase a new Fire Pumper to replace a 2000 Seagrave Fire Pumper that has reached the end of its useful life. The Ithaca Fire Department had originally planned to refurbish the Pumper and replace the 1990 Heavy Rescue Truck this year. However, recent assessments of the equipment revealed that the Pumper’s frame has structural issues which would require a lengthy repair period, during which the truck would have to be largely disassembled to repair the frame. The IFD will move up the replacement of the Pumper to this year, and instead refurbish the Rescue Truck, extending its useful life by seven years. The purchase of the new Fire Pumper is estimated at $555,000. In accordance with the terms of our fire protection contract, City of Ithaca is requesting the Town’s approval for the purchase of the new Pumper Truck, to be delivered in 2017, and a contributory payment by the Town in the estimated amount of $178,500. A resolution to approve the City purchasing this equipment will be presented to the Town Board on July 11. We will also need to add the $178,500 to the Fire Protection Fund in the 2017 Preliminary Ithaca Town Budget • Discuss Training Opportunity for Budget Officer. Mr. Solvig informed the Committee that the Government Finance Officers Association will be conducting a “Budget Analyst Training Academy” in Chicago at the end of September that he will be attending. This training is being held in Chicago from September 27 - 30, so it will be necessary to reschedule the September Budget Committee meeting to September 21, which is the 3 rd Wednesday. The Committee concurred with rescheduling the meeting date to September 21. • Other Items. - Status of Escrow Accounts: Mr. Solvig reported that this year he and Debby Kelley have been working to “clean up” some of the Town’s Escrow Accounts. With the assistance of Chris Balestra, deposits held for cell towers were identified, reviewed, returned as appropriate, and the remaining deposits consolidated from three accounts to one account. Deposits held 5 for road permits and road use agreements were also identified, reviewed and consolidated into one account. The Town is also currently holding $11,860 in the Ithaca Towers escrow, which is believed to have been for the first right of refusal on the purchase of the old Town Hall property on Seneca Street. Mr. Solvig stated he would also like to eliminate this escrow account this year, but this may require several hours of research, including some help from Susan Brock. - Status of Town Audit: The audit by Sciarabba Walker & Co. of the year ended December 31, 2015 is almost complete. We should be receiving the draft report in the next couple weeks. - Status of Court Audit: The audit by Sciarabba Walker & Co. of the court records for the year ended December 31, 2015 has been completed and the report distributed to the Town Board. The findings for this past year are much improved over the previous two years. The Town Board will need to adopt a resolution acknowledging receipt of the report at the July meeting. - 2016 Billing to City for Reimbursement of Shared Sustainability Planner Expenses: Mr. Solvig reported that the billing for reimbursement of shared sustainability planner expenses was sent to the City on June 1 for the amount of $14,668.06. This is for the second year of the agreement between the Town and City, covering the period from April 1, 2015 to March 31, 2016. For the first year of the agreement, the Town received reimbursement in the amount of $14,341.78. - 2016 Billing to Post Office for 2011 Roof Repair Project: Mr. Solvig reported that the annual billing was sent to the USPS on June 1 for the amount of $2,343.93, and payment has been received. The meeting was adjourned at 1:14 p.m. Next Meeting: Wednesday, July 27, 2016 at 12:00 pm, Town Hall - Aurora Room