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HomeMy WebLinkAbout02-26-03 Budget & Administration Committee Meeting Agenda BUDGET AND ADMINISTRATION COMMITTEE FEBRUARY 26, 2003 7 :00 P.M. COMMON COUNCIL CHAMBERS AGENDA Statements from the Public Amendments to Tonight' s Agenda A. Mayor 1 . Request to Approve 2003 Budget Amendment for Drug Free Community Grant - Resolution 2 . Request to Approve Drug Free Community Support Contract with Tompkins County - Resolution 3 . Telecom Ordinance (Material to be distributed at meeting) B. Chamberlain 1 . Requests for Waiver of Penalty on Taxes - Resolution C. DPW 1 . Snow Removal Cost - Report D. Controller 1 . Workers' Compensation Insurance - Report 2 . Preliminary 2002 Financial Status - Discussion 3 . Funds Expended on Layoffs - Report 4 . Approve 2002 Allocation from Health Insurance Reserve - Resolution E. Reports 1 . Mayor' s Report 2 . Sub-committee Reports 3 . Council Members' Announcements 4 . Next Month' s Meeting: March 26, 2002 April Meeting: April 30, 2002 (5th Wednesday) Mayor - Request to Approve 2003 Budget Amendment for Drug Free Community Grant WHEREAS, the City has received several grants from the United States Department of Justice since October, 1999 for the Drug Free Communities Program, and WHEREAS, grant funds through said program total $350, 000, and WHEREAS, the current supplement for this grant program is $75, 000, with a City match of $85, 000 (TCAT) , and WHEREAS, the 2003 City Budget is in need of adjustment to better reflect the current grant supplement for this program; now, therefore, be it RESOLVED, That Common Council hereby amends the 2003 Authorized City Budget by an amount not to exceed $75, 000 for the purpose of accounting for said grant program as follows : Increase Revenue Account : A1112-4389 $75, 000 . 00 Increase Appropriations Accounts : A1112-5115 $14 , 257 . 00 A1112-5425 930 . 00 A1112-5435 25, 110 . 00 A1112-5460 32, 500 . 00 A1112-9730 1, 091 . 00 A1112-9740 221 . 00 A1112-9760 891 . 00 $75, 000 . 00 Mayor— Reauest to Approve 2003-04 Application to Extend Drue Free Community Grant WHEREAS,the City is eligible to apply for a fifth year of funding to support the Drug Free Community grant funded by the Department of Justice since 1999, and WHEREAS,the application for$75,000 in federal funds requires approval of the governing body of the City and WHEREAS,the Ithaca Community Drug Task Force Board is preparing the application and has committed to assuring that the matching funds of$75,000 will be available from non-City sources ; now therefore, be it RESOLVED, That Common Council hereby authorizes the Community Drug Task Force to submit an application requesting$75,000 in Drug Free Communities Support Grant funds for the period October 1,2003 through September 30,2004. Mayor - Request to Approve Drug Free Community Support Contract with Tompkins County WHEREAS, the City has received several grants from the United States Department of Justice since October, 1999 for the Drug Free Communities Program, and WHEREAS, grant funds through said program total $350, 000 with this year' s current supplement at $75, 000 and a City match of $85, 000, and WHEREAS, the City' s previous Drug Grant Coordinator resigned in May, 2002 and the City has been unable to fill the position since the resignation, and WHEREAS, since a site visit by the Department of Justice in August, 2002 , the Community Drug Task Force Board re-organized and is exercising oversight of the Communities Grant program, and WHEREAS, the County Youth Bureau has extensive experience and expertise in community grant management and City staff is currently understaffed in this area, and WHEREAS, the City is recommending contracting with the Tompkins County Youth Bureau to assume the duties of the Drug Grant Coordinator at a cost of $23 , 610 for this grant period of 10/1/02 - 9/30/03; now, therefore, be it RESOLVED, That Common Council hereby authorizes the Mayor to enter into a contract with the Tompkins County Youth Bureau in an amount not to exceed $23, 610 for the purposes of supporting the Drug Free Communities Grant for the period 10/1/02 - 9/30/03 per attached contract, and be it further RESOLVED, That the funds for said contract shall be derived from existing grant funds in the Drug Free Communities 2003 Budget . Community Drug Task Force C/o Tompkins County Youth Bureau 320 W. State Street Ithaca,New York 14850 Phone: 607-274-5310 Fax: 607-274-5313 Email: Nzahle@tompkins-co.org MEMO TO: Steve Thayer, City Controller&Members of Common Council FROM: Nancy Zahler, Coordinator DATE: January 22, 2003 RE: Amendment of Drug Task Force Grant 10/1/02-9/30/03 The Community Drug Task Force Board was re-organized in September 2002 to exercise oversight of the federal Drug Free Communities Grant received by the City for this federal fiscal year. The approved grant includes$23,610 for coordinator salary, fringe benefits and training. The coordinator position has been vacant since Laurel Guy resigned in May and Dr.Michelle Thompson resigned in June. Since the Department of Justice audit in August, it became apparent that the amount of work needed to simultaneously come into compliance, assure oversight of current activity, and plan for the future would be formidable for a new,part-time person to handle in the time remaining on this grant. After the position was offered to and declined by Dr. Thompson who was already familiar with the project and its records,the Task Force Board voted in October to contract with the Tompkins County Youth Bureau to provide coordination services for the balance of the grant period 10/1/02-9/30/03. The County Youth Bureau has extensive experience and expertise in community planning, contract management,reporting, and coordination as well as in funding youth development programs and facilitating community coalitions. County Youth Bureau Director Nancy Zahler will assume the duties of Coordinator and will delegate some tasks to others on her staff to assure that all past reports are prepared,that current services are implemented as outlined in the grant and documented appropriately. To achieve this transfer in coordinator responsibilities,both the City and the Department of Justice need to authorize the following transfers. The Mayor has submitted the request for amendment to DOJ; has received verbal approval from Program Officer Patrick Dunckhorst, and is awaiting written approval. Transfer from: Personal services: $ 17,160 Fringe benefits $ 4,890 Travel/training $ 1,560 Total $23,610 Transfer to: Contractual services: $23,610 To be allocated as follows: Coordinator services $20,800104 days @$200/day=$20,800 Supplies $ 1,250Copying,postage Travel/training $ 1,560Same as original at this time Cc Mayor Cohen CONTRACT FOR SERVICES Made this first day of October between: The CITY OF ITHACA, a municipal corporation with offices at 108 East Green Street, Ithaca, New York, hereinafter called the "City" ' And TOMPKINS COUNTY YOUTH BUREAU, a department of the municipal corporation with offices at 125 E. Court Street, Ithaca, New York, 14850, hereinafter called the "Contractor" WITNESSETH: WHEREAS, the City requires certain services to be performed more particularly set forth in Schedule A attached hereto and made a part thereof, and WHEREAS, the Contractor is desirous of performing such services and the City is desirous of contracting with the Contractor to provide such services; NOW, in consideration of the covenants, conditions, and provisions contained herein, it is hereby AGREED as follows : 1 . The Contractor agrees to perform the services set forth in Schedule A attached hereto and made a part hereof in a manner and at such time or times as is satisfactory to the City. 2 . The Contractor shall be paid for providing such services as follows : For the period 10/01/02 -9/30/03 , the Tompkins County Youth Bureau shall submit quarterly invoices requesting reimbursement for consultant services rendered totaling $20, 800 . Invoices shall also include requests for reimbursement of the actual costs of supplies and training approved by the Community Drug Task Force Board up to a total of $2 , 810, for a grand total of up to $23, 610 . 3 . The relationship of the Contractor to the City is that of an independent contractor. As such, the Contractor shall receive no fringe benefits from the City including but not limited to medical insurance, retirement benefits, workers' compensation, disability, unemployment insurance or any other benefits or remuneration other than that set forth in paragraph 2 hereinabove. 4 . The City may terminate this contract at any time without cause, in which case the Contractor shall be paid pro rata for the satisfactory work performed to date of termination. 5 . The Contractor shall defend, indemnify, and hold the City harmless from any claims against the City arising from the negligence of the Contractor. 6 . The Contractor will not discriminate against any employee, applicant for employment, sub-contractor, supplier of materials or services, or program participant because of race, age, creed, color, sex, national origin, disability, marital status or sexual preference. 7 . Workers' Compensation and Disability Coverage : A condition for entry into this agreement is the presentation by the Contractor to the City of Ithaca of either proof that the Contractor provides the levels of workers' compensation and disability coverage required by the State of New York or that the Contractor is not required to provide such coverage . CITY OF ITHACA: BY: DATE: CONTRACTOR: BY: DATE: APPROVAL AS TO FORM: DATE: City Attorney CITY CONTROLLER: DATE: City Controller BUDGET AND ADMINISTRATION COMMITTEE DATE: Chairperson, B & A Committee SCHEDULE A The Tompkins County Youth Bureau, with offices at 320 W. State Street, Ithaca, New York 14850 will perform the following planning, administrative, and coordinating tasks in support of the City of Ithaca' s federal Drug Free Communities Grant and the Ithaca Community Drug Task Force : 1 . Convene, support, and record the planning and activities of the Community Drug Task Force (CDTF) in its official oversight role of the Drug Free Communities grant . 2 . Prepare and submit program reports as required by the Department of Justice (DOJ) and its evaluators . 3 . Assist the City in fulfilling its plan of correction by completing past reports and documenting other changes as required by DOJ. 4 . In cooperation with the City Controller, prepare budget updates for the CDTF Board, review and certify all grant- related expenditures, and assure that City fiscal policies are fulfilled related to grant expenditures . 5 . Monitor the direct service components of the grant operated by the Ithaca Youth Bureau and GIAC and assure that records required by the DOJ are maintained, gathered, and submitted for inclusion in federally required reports . 6 . Advertise, screen, log, send bus passes to eligible students, and evaluate usage per grant and CDTF Board guidelines . 7 . Assure that the Ithaca City School District conducts a social norms survey, analyzes the results, and implements an awareness campaign for Ithaca School District secondary students . 8 . Assist the CDTF Board in planning and implementing a scholarship program and public awareness activities consistent with the approved grant . 9 . Assist the CDTF Board in applying for supplemental funding for FFY 2003-2004 . 10 . Meet periodically with the Mayor and Controller to review grant activities, finances, and status of compliance efforts . 11 . Report periodically to Common Council on CDTF activities . 12 . Submit copies of all federally required and local activity reports to the Mayor and Controller. 13 . Assist the City in preparing for any DOJ program audits that may be scheduled. 1 � Chamberlain - Request for Waiver of Penalty on Taxes "\ WHEREAS, the owner of 706 E. Seneca Street, Davide Sayada, has requested a waiver of penalty on 2nd installment of 2002 City taxes because he did not receive the tax bill; now, therefore, be it RESOLVED, That pursuant to the guidelines set forth by Common Council on June 6, 2001, the request to waive penalty is denied. WHEREAS, the owner of 205 Second Street, Brendon Smith, has requested a waiver of penalty on delinquent 2nd installment 2001 City taxes because he did not receive the tax bill, and WHEREAS, because an incorrect address on file at Tompkins County Assessment was used for the mailings regarding the delinquency caused the owner not to receive notices on the 2001 2nd installment until December, 2002 , and WHEREAS, the City was notified of a correct address that was used for other, subsequent tax bills, and WHEREAS, had the address filed with the City been used, as opposed to the County' s, Mr. Smith would have received notification of the delinquency before some portion of the penalties due had accrued; now, therefore, be it RESOLVED, That $ � `(p.� in penalty be waived. iT CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 s s OFFICE OF THE CHAMBERLAIN �PoRATEO Telephone: 607//274-6580 Fax: 607/272-7348 To: Budget and Administration Committee From:Debra A. Parsons, City Chamberlain Re: Requests for Waiver of Penalty on Taxes Date: January 29, 2003 I have received two requests for waiver of penalty on taxes due in 2002. Under New York State Real Property Tax Law, and Common Council's resolution dated June 2001, I cannot waive the penalty. Both owners would like to appeal to Common Council. Davide Sayada purchased 706 E. Seneca Street at the end of May 2002. The 2nd installment tax bill and the pre-delinquency notice were sent to the previous owner, because both were mailed before we were notified of the change in ownership. A notice mailed in December about the delinquent taxes was sent to Mr. Sayada. I recommend that the penalty of$274.85 on a base lien of$1,126.24 stand. We notified Mr. Sayada of the delinquent taxes as soon we had his address. Brendon Smith, with others who live in Massachusetts, purchased 205 Second Street during the first half of 2001 from FNMA, prior to the issuance of the second installment tax bill. Our records show that the 2nd installment City tax bill was mailed to FNMA. City records were then changed to Mr. Smith's address here in Ithaca. County records were, however, changed to an incorrect address for the Massachusetts owners. Interim notice of the unpaid 2001 taxes was sent to the Massachusetts address, based on the County records. Last year's taxes were sent to the local address based on a change we received from the post office. The first notice Mr. Smith received of the delinquent taxes was the foreclosure notice in December of 2002. Fees and penalties of$313.07 have accrued on a base tax of$344.48. Because of the timing of the closing on Mr. Smith's property, his attorney should have made it clear to him that an address change would need to be done for the 2nd installment tax bill. We cannot expect to notify new property owners of taxes due until we know the property has changed hands. However, much of this penalty accrued after we were notified of Mr. Smith's address. The correct, City- maintained address was overwritten with the incorrect "official" County-maintained address. Under the circumstances, I would like to recommend that we waive half of the $313.07, or$156.24, in fees and penalties that have accrued. Mr. Smith's case highlights our need for parcel-based receivable collection software. If we had been using a system that would process water bill and tax bill address changes simultaneously, as well facilitate notification to the County of address changes, Mr. Smith would have received his 2nd installment tax bill in June of 2001, and the County's record would have been corrected shortly thereafter. "An Equal Opportunity Employer with a commitment to workforce diversification." ��� City of Ithaca Workers Comp overview 2003 Workers Compensation Insurance Overview: Various plans Previous Plan: Retrospective Rating Program Determine an insured's premium at the expiration of the policy period on actual losses during the policy period. Formula driven cost-plus rating program. Provider: Selective 3 year plan 2002 cost: $ 1,084,025 includes audit from previous year 2003 renewal cost: $ 1,090,000 Budget 2002: $ 588,845 Audit Required: Yes LOC required for 2003: Yes New Plan: Large Deductible Program Viable risk alternative for insured. Attractive cash flow plan. Aggregate stop loss feature.May be able to improve experience modifier. Increased incentive for implementing loss control programs. One year plan. 2003 premium: $ 560,526 Cash outlay plus audit 2002 Projected payment: $ 1,110,525 at projected losses of$550,000 paid out over 10 years or less could be higher or lower depending on losses Maxium stop loss $ 1,200,000 Budget 2003: $ 838,378 Provider: Travelers Audit Required: Yes Loc required 2003: Yes $515,000 collateral Loss Summary for City of Ithaca: Year Losses Total in excess of$10.000 1996-1997 $ 487,700 7 $ 406,900 1997-1998 $ 305,000 4 $ 226,300 1998-1999 $ 210,400 6 $ 158,300 1999-2000 $ 95,700 2 $ 37,900 2000-2001 $ 218,300 4 $ 118,100 2001-2002 $ 1,192,900 9 $ 925,800 2002-2003 $ 521,000 11 $ 414,800 Total $ 3,031,000 $ 2,288,100 AVG $ 433,000 $ 326,871 Reserve: $ 100,000 City Controller - Approve 2002 Allocation from Health Insurance Reserve WHEREAS, the City' s overall health insurance costs have been increasing at least 15 percent annually for the past four years, and WHEREAS, the City established a Health Insurance Reserve in 1989 to assist the City' s budget when health insurance costs exceeded budget estimates, and WHEREAS, the current balance in the City' s Health Insurance Reserve is $1, 604 , 221, and WHEREAS, the 2002 Health Insurance costs for all funds exceeded the 2002 budget estimates for all funds by $382 , 419, and WHEREAS, the City' s 2002 General Fund Budget does not have the needed flexibility to cover all of the $319, 583 General Fund portion of the Health Insurance budget overage; now, therefore, be it RESOLVED, That Common Council hereby authorizes the Controller' s Office to amend the 2002 budget for the General Fund by an amount not to exceed $175, 000, which will be allocated from the Health Insurance Reserve established for said purpose, and be it further RESOLVED, That the Controller' s Office shall make all appropriate accounting adjustments to reflect the Health Insurance Reserve allocation as follows : General Fund $175, 000 ORDINANCE 2003- An Ordinance amending Article II, entitled "Telecommunications Ordinance" of Chapter 152 of the Code of the City of Ithaca,entitled "Communications Technology." WHEREAS, at a regularly scheduled meeting held on November 6, 2002, Common Council promulgated a Telecommunications Ordinance,and WHEREAS, said Telecommunications Ordinance provides for the regulation of the City's Rights-of-Way by, amongst other provisions, requiring a Telecommunications System providing Long Distance Network Service and/or Private Service to pay an annual Linear Foot Fee for use of the Public Right-of-Way, and WHEREAS, said provision did not delineate between the installation of overhead cable and the installation of underground conduit and/or cable,and WHEREAS, it would be in the best interests of the City to make such a delineation, NOW THEREFORE BE IT ORDAINED AND ENACTED by the Common Council of the City of Ithaca, New York, as follows: Section 1: Section 152-34.E(1)(b) of the Code of the city of Ithaca shall be amended as follows: E. FRANCHISE FEES AND IN-HIND COMPENSATION. 1. Franchise Fee and Linear Foot Fee. (b) As compensation for the use of the Public Right-of-Way for a Telecommunications System solely providing Long Distance Network Service and/or Private Service, Franchisee shall pay to the City a Linear Foot Fee of one dollar and fifty Bents ($1.50) $1.00 per linear foot of aerial cable installed in the of Public Right-of-Way for the Aerial Facilities and shall pay to the City a Linear Foot Fee of four dollars ($4.00) per linear foot of underground (standard 4 inch) conduit or cable installed in the Public Ri t-of-Way for the Facilities annually during the period of its operation under the Franchise for the first three (3) years of the Franchise. Thereafter, the Franchisee shall pay the fee of S445-0 $1.00 per linear foot of aerial installation or $4.00 dollars per linear foot of underground installation, plus an annual increase for inflation. C:\TEMP\TelecomOrdLinearFootAmend2003.doc Such inflation increase shall be based upon the regional Consumer Price Index (CPI) published by the U.S. Department of Commerce for those years. Section 2. Severability. Severability is intended throughout and within the provisions of this ordinance. If any section, subsection, sentence, clause, phrase or portion of this ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, then that decision shall not affect the validity of the remaining portions of this ordinance. Section 3. Effective Date. This Ordinance shall take effect immediately in accordance with law upon publication of a notice as provided in the Ithaca City Charter. C:\TEMP\TelecomOrdLinearFootAmend2003.doc City of Ithaca 2003 Budget Impacts 2/26/2003 August Actual Current Estimated Estimated Retirement: Projected Used Budget New Projection New Cost Added Cost Regular Retirement 4.1% 7.1% $ 775,683 11% $ 1,201,762 $ 426,079 Police and Fire 4.7% 8.6% $ 602,857 15% $ 1,051,495 $ 448,638 Reserves available $ 245,000 $ - $(245,000) $ 1,623,540 $ 2,253,257 $ 629,717 Key Dow Number 8053 Set at 11%and 15% Regular Retirement 237 for every 237 point change from 8053 rates will change 1% Police and Fire Ret 141 for every 141 point change from 8053 rates will change I% Current Dow 7807 Difference from 8053 246 current additional% 1.04% Regular ret 12.04% $ 1,315,162 current additional% 1.74% Police and Fire 16.74% $ 1,173,796 Totals $ 1,623,540 $ 2,488,959 $ 865,419 Other Items: State Aid Left as is in current Governor's Budget unless changes are made Fuel Prices Continue to increase will have negative impact on our Budget for 2003 Snow Removal Current cold and snowy winter will have negative impact on our budget Total 2003 Budget $ 257,843 Expended $ 118,021 Available $ 139,822 %expended 46% Salt Budget $ 65,000 Expended $ 48,231 Available $ 16,769 %expended 74% OT Budget $ 22,000 Expended $ 15,633 Available $ 6,367 %expended 71% Interest Rates Short term seem to be staying low,but if start to increase will impact us NYCOM City Budget Survey 2003 NYCOM's City Budget Survey was sent to the sixty-one cities outside of New York City in January 2003 and asked a series of questions about their fiscal condition, including trends in a variety of major revenue and expenditure categories. The key findings from the forty-four respondents include: • 59%of cities reported that their financial condition had worsened or significantly deteriorated over the past year. • 86%of cities increased property tax rates in 2003, compared to 72% in 2002 and 54% in 2001. • The average property tax rate increase in 2003 was 7.4%,up from 5..6%in 2002 and 5.5%in 2001. • Even though cities have been able to consistently limit spending growth to the rate of inflation or less over the past decade,cities have experienced significant average increases in 2002 and 2003 in virtually all major spending categories over which cities have little control, including: -Health Insurance up 14% in 2003 (on top of a 14%increase in 2002); - Liability Insurance up 33%in 2003 (on top of a 15%increase in 2002); -Workers' Compensation up 19%(on top of an 18%increase in 2002); - Public Safety up 5%(on top of a 6% increase in 2002). • When asked to list state actions that would be most beneficial to their city's economic and financial condition, the results were: #1: maintain state aid at current levels, and increase such aid once the state's finances improve(with an overwhelming 37 cities ranking this their highest priority); #2: prohibit binding arbitration awards that force property tax increases; and #3: increase the maximum local sales tax rate for cities/counties. • The 2003 survey asked the cities to describe any reductions in employment or services that provided budgetary savings. There was an overall savings of more than$16.5 million. These savings were achieved through layoffs, attrition, cuts in programs and services,project and equipment purchase delays, and increased health care co-payments. 02/25/03 TUE 16:24 [TX/RX NO 52141 17j002 City of Ithaca Summary of 2002 Financial Data As of 2/26/2003 2002 Financial Key Elements General Fund: 2002 2002 2002 2002 2001 Budget Actual Encumbrances Over budget(under Budget) Actual Total Revenues: $31,574,803 $31,765,356 $ - $ 190,553 $ 30,718,127 Percentage above prior actual 3.4% Revenue items of note: Sales Tax $ 7,668,570 $ 8,028,569 $ - $ 359,999 $ 7,534,537 Parking Ramps/Garages $ 779,800 $ 794,198 $ - $ 14,398 $ 760,005 Parking Meters $ 430,000 $ 508,614 $ - $ 78,614 $ 466,038 Site Dev. Fees $ 216,000 $ 258,652 $ - $ 42,652 $ 27,410 Building Permits $ 315,000 $ 271,857 $ - $ (43,143) $ 308,898 Fines $ 800,000 $ 734,314 $ - $ (65,686) $ 701,402 State Aid revenue sharing $ 1,589,681 $ 1,589,681 $ - $ - $ 1,677,182 Mortgage Tax $ 250,000 $ 426,436 $ - $ 176,436 $ 349,296 Property Tax $ 8,649,646 $ 8,862,554 $ - $ 212,908 $ 8,418,881 Utility Receipts Tax $ 350,000 $ 267,100 $ - $ (82,900) $ 309,271 Transit Program Reimb. $ 986,514 $ 764,402 $ - $ (222,112) $ 1,004,308 Town Fire Contract $ 1,893,402 $ 1,866,147 $ - $ (27,255) $ 1,805,679 Transfer from Capital $ 1,931,908 $ 1,873,295 $ - $ (58,613) $ 1,838,050 Total Expenditures: $32,250,294 $32,279,581 $ 115,038 $ (144,325) $ 31,530,506 Percentage above prior actual 2.4% Expenditure items of note: Overtime $ 489,233 $ 862,042 $ (372,809) $ 802,966 Police $ 189,381 $ 277,464 $ (88,083) $ 321,669 Fire $ 151,995 $ 261,588 $ (109,593) $ 228,987 Transit $ 39,463 $ 110,947 $ (71,484) $ 119,705 Snow Removal $ 22,000 $ 19,408 $ 2,592 $ 13,694 Debt $ - Principal $ 3,028,398 $ 3,028,398 $ - $ 2,851,095 Interest $ 1,555,166 $ 1,553,988 $ 1,178 $ 1,495,030 Health Insurance $ 3,352,012 $ 3,671,595 $ (319,583) $ 3,058,625 State Retirement $ 191,984 $ 164,148 $ 27,836 $ 122,191 Social Security $ 1,302,907 $ 1,313,697 $ (10,790) $ 1,316,047 Workers Comp $ 430,181 $ 819,807 $ (389,626) $ 455,179 Fund Balance Total 12/31/2001 $ 3,475,268 Revenues $31,765,356 $ 30,718,127 Expenditures $32,279,581 $ 31,530,506 Results from operations $ (514,225) $ (812,379) 12/31/2002 $ 2,961,043 �goTOy CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 DEPARTMENT OF PUBLIC WORKS 0* o° William J. Gray, PE., Superintendent/City Engineer Telephone: 607/274-6527 Fax: 607/274-6587 MEMORANDUM TO: Board of Public Works FROM: William J. Gray, P.E., Superintendent of Public Work RE: Snow Removal Budget DATE: February 26, 2003 Attached is a memo I asked Rick Ferrel to prepare for use in informing Common Council, through them B&A Committee, that they need to amend the 2003 budget. I would like your review and comments. As you know, our winters cover two budget years, which can be good or bad. This year it has just been bad. We ran over last years budget; got a new budget and we are at it again. The 2003 Snow Removal budget (A5142) is $258,000, of which $201,000 is the operating portion. Three lines (Hourly labor, $99,000; overtime, $22,000; salt and abrasives, $65,000) make up $186,000 of that. Salt and abrasives is where we will go most astray. The winter problems have been wide spread causing everyone's use of salt to skyrocket and we expect to be on the open market buying salt for the remainder of the 02-03 winter. While we can only guess how the rest of the win and then the start of 03- 04 will go, we recommend that an operating reserve $50,000 e set up for budget year 2003. This is based on the following estimates: "An Equal Opportunity Employer with a commitment to workforce diversification." ��! Page 2 Re: Snow Removal Budget Date: February 26, 2003 Allow for Added Overtime March, April,Nov., Dec. 50% 15,600 Jan., Feb. (already used) 50% 15,600 31,200 less budget 22,000 $9,200 $9,200 Allow for Added Salt Current Expense Jan., Feb. 60% Salt, 1460 tons 35,000 Salt, treated 890 tons 25,600 $61,100 $61,100 Open Market March, April 15% Salt 365 tons 17,500 Salt, treated 220 tons 12,800 $30,300 $30,300 State Contract Nov., Dec. 25% Salt 730 tons 17,700 Salt, treated 445 tons 12,800 $30,500 $30,500 121,900 Less budget 65,000 $56,900 $56,900 $66,100 Use reserve of: $50,000 CITY OF ITHACA V~ ° � DEPARTMENT OF PUBLIC WORKS - STREETS & FACILITIES DIVISION ? 245 Pier Road, Ithaca, New York 14850-3246 t RICHARD FERREL, ASST. SUPERINTENDENT OF PUBLIC WORKS rickf @ci.ithaca.nyus �Po� O Telephone: 607/272-1718 Fax: 607/272-4374 To: Common Council From: Richard Ferrel - Asst. Supt. of Public Works Date: February 25, 2003 Re: Year to Date Snow Removal Costs Due to this winter having an early start and continuing with many snowfall events, along with colder than normal temperatures, snow removal expenses may soon exceed the amount budgeted for all of 2003. The following are the year to date expenditures for snow removal overtime labor charges and the de-icing materials. DE-ICING MATERIALS: Straight Salt - 1,463.45 tons @ $3 !508.16 Treated Salt - 888.00 tons @ $28,588.43 - TOTAL $63,096.59 2003 BUDGETED MATERIALS - $6511000 OVERTIME LABOR: Includes Highway, Garage and Water& Sewer personnel working on street snow removal activities. 704.6 hours - $15,633.34 2003 OVERTIME BUDGET - $229000 With more than one month of winter weather remaining before spring arrives, the materials budget will be exceeded very soon. We also need material available for use during the months of November and December. While the overtime account is $6,400 under the budget authorization at this time, the remaining amount will not be sufficient for the remainder of the "An Equal Opportunity Employer with a commitment to workforce diversification." Z� Snow Removal Costs (page 2) year. The 2003 budget will need amending to cover the increased costs of this snow removal season. 2002 Snow Removal Costs: January through March of 2002 was very mild and the Highway Crew was performing several construction activities rather than the usual snow removal work. Through the month of November, the department spent $52,145.02 on de-icing materials and had the salt bays filled to near capacity. With winter starting in mid November and continuing with two major storms through December, the 2002 materials budget was exceeded. Purchases in December totaled 1,261.34 tons @ $32,574.28 for a year end total of$84,719.30. The materials budget for 2002 was also $65,000. 2002 purchases exceeded the budgeted amount by $19,719.30. 2002 overtime labor costs were under budget at $19,407.67 of the $22,000 authorized. Of the $19,407.67 expended in 2002, $9,876.88 was used in December. Related Issues: Salt availability - The NY State contract period for salt is the State Fiscal Year rather than the City's budget/calendar year. Municipalities that wish to be included in the State Contract for salt must submit a requirement letter stating the amount that will be purchased during the contract period. The City of Ithaca has been included in the state salt bid for many years. Based on the quantity stated in the requirement letter, we are required to purchase 80% of the amount. Also based on the requirement letter's stated quantity, we are unable to purchase more than 120% of the amount at the state bid price. Currently, we have purchased the 120% limit of straight salt and, if more is required before spring, the cost per ton will exceed double the State Contract price. We are still able to purchase treated salt but only have 300 tons remaining on our authorization. Potholes - To date this budget year, we have purchased 40 tons of patch material to fill potholes in street pavement. During most years, about 20 tons of material is used for the whole year. Pothole problems can be weather related but are also an indicator of overall pavement conditions. Unfortunately, we have deferred maintenance on many streets as a result of a R Snow Removal Costs (page 3) long term budget problems and the associated personnel reductions. Our deferred street maintenance is becoming visible in the form of the number and severity of this year's potholes. Deferring street maintenance results in more work hours being spent on pothole filling in the winter months, more permanent street patching in warm weather and eventual higher costs for street reconstruction projects as a result of pavement life cycles being reduced. We can only hope that the City's economic picture improves and the Department of Public Works becomes funded at a level to perform the necessary pavement maintenance activities. Cc: Alan Cohen - Mayor Bill Gray - Supt. of Public Works Steve Thayer- City Controller • CITY OF ITHACA--UNRESTRICTED/RESTRICTED CONTINGENCY ACCOUNT SUMMARY 2003 A1990 _UNRESTRICTED CONTINGENCY BALANCE UNRESTRICTED CONTINGENCY 2/26/03 $90.000.00 _ RESTRICTED CONTINGENCY Salary Increase for Management near retirement _Council $5,000.00 Funds for Clerks Office Stipends for new records positions Council $1,375.00 Funds for layoffs related to 2003 Budget to 2/1/03 Council $34,569.00 Council $0.00 Council $0.00 Council $0.00 Council $0.00 Work Environment Task Force Po100900 A1430-5700 Council $22,400.00 BALANCE RESTRICTED CONTINGENCY 2/26/03 4.00 BALANCE UNRESTRICTED/RESTRICTED CONTINGENCY 2/26/03 $153.344.00 March COUNCIL PROPOSED RESOLUTIONS: $0.00 $0.00 $0.00 $0.00 $0.00 _ $0.00 $0.00 0.00 Balance Unrestricted Contingency after March Proposed Resolutions sgQ.OQQ.00 CITY OF ITHACA-UNRESTRICTED/RESTRICTED CONTINGENCY ACCOUNT ACTIVITY 2003 2/26/2003 COUNCIL i TYPE OF CONTINGENCY ACCOUNT MONTH I AMOUNT CONTINGENCY TITLE DESCRIPTION TRANSFERRED TO Jan-03 No Activity Feb-03 No Activity RESTRICTED Council Mar-03 $0.00 UNRESTRICTED _ $0.00 RESTRICTED Apr-03 $0.00 UNRESTRICTED $0.00 UNRESTRICTED $0.00 UNRESTRICTED M_a -03 $0.00 UNRESTRICTED $0.00 $0.00 Jun-03 $0.00 UNRESTRICTED $0.00 UNRESTRICTED Jul-03 $0.00 UNRESTRICTED $0.00 UNRESTRICTED $0.00 RESTRICTED $0.00 $0.00 I Aug- 3 $0.00 UNRESTRICTED $0.00 UNRESTRICTED $0.00 $0.00 _ $0.00 Sep-03 $0.00 I - Oct-03 $0.00 Nov-03 $0.00 UNRESTRICTED I _ $0.00 RESTRICTED Council T $0.00 RESTR TED $0.00 RESTRICTED Council $0.00 I $0.00 Dec-03 $0.00 RESTRICTED Council i _ $0.00 RESTRICTED Council $0.00 SUMMARY AMOUNT _ UNRESTRICTED CONTINGENCY $0.00 _ RESTRICTED CONTINGENCY 0.00 - 1 -- TOTAL I I