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HomeMy WebLinkAboutMN-B&A-1994-08-24 BUDGET AND ADMINISTRATION COMMITTEE REGULAR MEETING 7 :30 P.M. AUGUST 24, 1994 MINUTES Present: Committee Members: Booth, Shenk Gray Committee Member Excused: Johnson Others Present: Mayor Nichols City Controller Cafferillo Deputy Controller Thayer City chamberlain Parsons City Attorney Guttman Deputy Building Commissioner Radke Asst. City Attorney Kennedy Fire Chief Wilbur Deputy Planning Director Sieverding Youth Bureau Activities Coordinator Green Members of the media/public ----------------------------------------------------------------- ----------------------------------------------------------------- 1 . Opening Comments: Chairperson Booth stated that the following changes were made to the agenda: A. An additional report on Domestic Partnership Benefits . B. An additional Planning Department item on the Wal-Mart EIS. C. An additional Fire Department item on the Town Fire Contract. D. An additional Attorney item involving possible litigation. E. An additional report on the 1995 Other Community Service funding. F. The deletion of the Smoke/Heat Ordinance item. Members of the Public were asked to speak; the following member spoke: Will Kone (203 Madison Street) - Spoke as a representative of Change New York. Mr. Kone stated that he supported term limits for alderpersons and state legislators . He explained that he hoped B & A would forward the term limit resolution to Common Council. He discussed the media coverage relative to local and New 1 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 York State political races. 2 . Building Department A. Request to Amend 1994 Personnel Roster Deputy Building Commissioner Radke presented a request to amend the Building Department Personnel Roster by adding one part-time typist and deleting one Part-time Account Clerk/Typist. Radke explained that the Building Department will have an upcoming vacancy in its part-time Account Clerk/Typist position. She explained that this position is important to the department because of the responsibility for extensive maintenance of Building Department records. Radke stated that the department would like to take this opportunity to change the title to typist, because many of this individual' s duties are closely related to those normally held by a person in a typist position. She stated that the department would like to fill this position as soon as possible. She explained that the Civil Service Commission still needs to review the requested position' s duty statement, which will be done at their next meeting. Radke also requested that the position be filled at the maximum salary amount of $8, 320 per year. She stated that the funds will be derived from the Department' s budget. Radke explained that the maximum salary was requested in an attempt to hire an experienced individual for the position. Controller Cafferillo stated that the Personnel Office would have to perform a review of the salary range as it relates to other similar City positions . He explained that the review will be done at a later date. After a brief discussion, the following motion was made: WHEREAS, the Building Department will have an upcoming vacancy in its part-time Account Clerk/Typist position, and WHEREAS, this Account Clerk/Typist position is important in helping the Building Department properly maintain its records, and 2 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 WHEREAS, the department utilizes this Account Clerk/Typist position in a manner that more closely relates to a Typist position; now, therefore, be it RESOLVED, That the 1994 Personnel Roster of the Building Department be amended as follows: Add: One ( 1 ) typist (Part-time) Delete: One ( 1) Account Clerk/typist (Part-time) and be it further RESOLVED, That said personnel roster amendments are contingent on approval by the Civil Service Commission. The motion passed 3-0. B. Collection of Building Permit Fees Deputy Building Commissioner Radke stated that the Building Department would like to receive a portion of the pre-plan review fees for Building Permits to offset the actual cost of the pre-plan review. She explained that department personnel spend a great deal of time with developers respecting various permit applications . Radke stated that the Building Department has not yet established any proposal for this pre-application fee. City Attorney Guttman stated that the reason a proposal had not been developed was due to the lack of solid numbers from the Building Department. Mayor Nichols expressed his concern over the division of the permit tasks and the fee between the Building Department and the Planning Department. He stated that. the fees will all be collected and placed into the General Fund. He stated he was in favor of a pre- application fee. The Committee suggested that the Building Department look at the possibility of a pre-application fee for larger building permits and come back at a future meeting with a proposal. No formal action was taken. 3 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 3 . Finance/Chamberlain A. Recommendation to Deny Waiver of Tax Penalty City Chamberlain Parsons presented a request from the property owner of 203 Fair Street to waive a $12 . 74 penalty stemming from the late payment of taxes. Parsons explained to the Committee that the property owner did not receive the tax bill until July 12, 1994, due to the fact that the mortgage for the property had already been paid. Parsons stated that the Real Property Tax Law specifically states that the property owner is responsible for notifying the Chamberlain if the tax bill was not received. Parsons recommended to the Committee that the tax penalty not be expunged. After a discussion regarding the penalty circumstances, the following motion was made: WHEREAS, the property owner of 203 Fair Street has requested expungement of the penalties in the amount of $12 .74 owed to the City for late payment of the second installment of City taxes due June 30, 1994, and WHEREAS, the City Chamberlain and the Budget and Administration Committee have reviewed written documentation from the property owner relating to the late payment of City taxes; now, therefore, be it RESOLVED, That based upon the recommendation of the City Chamberlain, the request to waive the tax penalty is denied. The motion passed 3-0 . B. Recommendation to Deny Waiver of Tax Penalty City Chamberlain Parsons presented a request from the property owner of 218 Utica Street to waive a $12 .54 penalty due to the late payment of taxes . Parsons stated that the property owner simply forgot to pay his taxes on time, but paid the taxes the very next day, incurring a $12 .54 penalty. Parsons explained that the Real Property Tax Law specifically states that the tax payer is responsible for paying the taxes on time. After a brief discussion regarding the circumstances, the following motion was made: 4 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 WHEREAS, the property owner of 218 Utica Street has request expungement of tax penalties in the amount of $12 .54 owed to the City for late payment of the second installment of City taxes due June 30, 1994, and WHEREAS, the City Chamberlain and the Budget and Administration Committee have reviewed written documentation from the property owner relating to the late payment of City taxes; now, therefore, be it RESOLVED, That based upon the recommendation of the City Chamberlain, the request to waive the tax penalty is denied. The motion passed 3-0. C. Request to Amend 1994 Personnel Roster City Chamberlain Parsons presented a request to amend the 1994 Finance personnel roster by deleting a Senior Account Clerk/typist position and adding an Account Clerk/Typist position. Parsons explained that currently the Traffic Violation roster consists of a Senior Account Clerk/Typist 40 hours per week position, and an Account Clerk 35 hours per week position. She explained that recent and planned changes to the duties assigned to office personnel will allow her to distribute work so that the Account Clerk in the Chamberlain' s Office will assume the supervisory and higher level duties currently assigned to the Senior Account Clerk/Typist. Parsons also explained that the addition of the Account Clerk/Typist position will allow the Chamberlain' s Office additional flexibility for counter and telephone coverage. After discussion concerning the positions involved, the following motion was made: WHEREAS, the Chamberlain has recommended that the existing Traffic Violations Senior Account Clerk/Typist position in the Traffic Violations Department be deleted from the roster and that the supervisory duties related to that position be allocated to the Senior Account Clerk in the Chamberlain' s Office, and WHEREAS, with the deletion of the Senior Account Clerk/Typist position the Traffic Violations Department would need an Account Clerk/Typist position to allow additional flexibility for counter and telephone coverage; now, therefore, be it 5 t 1 • 1 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 RESOLVED, That the 1994 Personnel Roster in the Traffic Violations Department be amended as follows: Add: One (Account Clerk/Typist (40 hours) Delete: One (1) Senior Account Clerk/ Typist (40 hours) The motion passed 3-0. 4. City Attorney - Term Limit Discussion City Attorney Guttman discussed the term limit issue with the Committee. Chairperson Booth stated that the City has received a petition from the community to place term limits on the November ballot. The petition did not include the required percentage of voters from the last gubernatorial election as mandated by New York State law. However, the City has said it will discuss this issue even without the required percentage. Attorney Guttman stated that if Council passes a local law to amend the City Charter, then term limits could be changed. He stated that the Council does not have the authority to go to a referendum without the required percentage of signatures . Guttman cited various cases to support his conclusion. Will Kone stated that he has been in touch with cities and counties in the state which are placing the term limit issue on the ballot without the required percentage of signatures . Kone stated that the cases cited by the City Attorney are old. He suggested that this issue be forwarded to Common Council for a vote. The Committee stated that more information is needed before a vote is taken on the issue. The consensus of the Committee was against term limits, but the Committee will make a report at the Committee Of the Whole meeting. The City Attorney will continue further research into this issue. No action was taken. 5 . Finance/Controller - Payroll Deduction for Environmental Federation of New York Discussion Chairperson Booth introduced Ronald Kim, Executive Director, of the Environmental Federation of New York. Mr. Kim requested being placed on the agenda to discuss 6 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 the possibility of the City' s designating the Environmental Federation of New York as an additional payroll deduction for City employees . Kim explained that the Federation was established in 1991 by 16 groups, who are all concerned with environmental issues in New York State. He stated that the Federation now has 44 groups involved state-wide. He stated that the Federation is currently a payroll deduction choice with New York State employees, and that the employee' s deduction is used only for New York environmental issues, not national environmental issues . Kim stated that the Federation is also listed as a payroll deduction for many cities, colleges and private businesses . He stated that the Federation can do various presentations to City employees, explaining the various issues and possible payroll deduction, if necessary. Kim discussed the payroll deduction procedure and possible one-time payment method with the Committee. Melissa Seigal, Executive Director of United Way of Tompkins County, stated that she was observing and gathering information about the Federation. She explained that the City should be concerned about the criteria for an organization which the City will include as a possible payroll deduction or one-time gift by City employees. Seigal stated that there are many other federations and organizations that may seek the opportunity to allow City employees to donate. She gave the following list of possible information for an organization to submit to the City in order to be considered for placement on the list of potential City deductions: 1 . How the organization is governed. 2 . How the organization serves local people. 3 . How local people are involved in the organization. 4 . Whether the organization is registered in New York State. 5 . Whether service on the Board of Directors is voluntary or paid. 6 . What type of administration and accountability the organization has . 7 . What the organization' s fundraising costs are. 8 . Whether the organization is not-for-profit. 9 . Whether the gift is tax deductible. Seigal explained to the Committee that the United Way of Tompkins County meets all of the above criteria. 7 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 Discussion regarding the Federation request continued. The Committee agreed that the City should establish criteria for which organizations will be allowed to be placed on the City' s list of possible deductions. The Committee also agreed that the Personnel Administrator should consult with the City' s unions regarding the payroll deduction gift issue. No formal action was taken. 6 . Youth Bureau - Request to Amend 1994 Personnel Roster Youth Bureau Activities Coordinator Green presented a request to amend the 1994 personnel roster by deleting one part-time Youthworker position and one part-time Volunteer Coordinator position, and adding one full-time Youth Development Program Leader position. Green explained that the Youth Bureau is reorganizing the staffing of the Paul Schreurs Memorial Program to allow the program to become more efficient and result in significant savings without compromising the quality of the program. Green stated that two part-time employees will be leaving the Paul Schreurs Program soon, and the Youth Bureau is anxious to fill their positions before school starts in September. Green explained that the Youth Bureau would like to fill the positions with one full-time position, which will result in a savings of approximately $2,000 for 1994 with the reduction of salary and fringe benefits . The following motion was made: WHEREAS, the Youth Bureau will soon have vacancies in two part-time positions in the Paul Schreurs Memorial Program, and WHEREAS, the Youth Bureau is recommending that one full-time position replace the two part-time positions, which will result in approximately $2, 000 in fringe benefit savings for 1994 without compromising the quality of the Paul Schreurs Program; now, therefore, be it RESOLVED, That the 1994 Personnel Roster in the Youth Bureau be amended as follows : Add: One ( 1) Full-time Youth Development Program Leader (35 hours) 8 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 Delete: One ( 1) Part-time Youth Worker (25 hours) One ( 1) Part-time Volunteer Coordinator (28 hours) and be it further RESOLVED, That said personnel roster amendments are contingent upon the approval by the Civil Service Commission. The motion passed 3-0 . 7 . Attorney - Request to Extend Tax Sale Redemption Period City Chamberlain Parsons and City Attorney Guttman presented a request to extend the tax sale redemption period for the properties at 106 North Meadow Street and 602 West State Street. Guttman explained to the Committee that the 602 West State Street property had a sale pending, which failed to transpire and now a foreclosure action must be taken. He stated that the attorney for Fleet Bank, which represents the property, must complete all preliminary foreclosure work, including an environmental report, prior to the foreclosure. Guttman explained that the attorney for Fleet needs additional time to finish the foreclosure work, and obtain a court-ordered judgement to permit the payment of the property taxes . He stated that Fleet Bank has requested an extension of the tax sale redemption period until February, 1995 to allow the bank to obtain the court-ordered judgement for the property at 602 West State Street. The outstanding balance on the taxes for 602 West State Street is $25,000 . Guttman stated that the redemption date for the other property, 106 North Meadow Street, is November, 1995 . The Committee agreed that the property at 106 North Meadow Street did not need an extension. The following motion was made, including a direction to the Attorney' s Office to determine if this extension approval creates a liability to the City: WHEREAS, Fleet Bank, which represents the successor in interest to the mortgage of 602 West State Street, has requested an extension of several months to permit redemption of said property, and 9 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 WHEREAS, the City Chamberlain and the Budget and Administration Committee have reviewed written documentation requesting an extension for property redemption at 602 West State Street; now, therefore, be it RESOLVED, That Fleet Bank be permitted to redeem the property at 602 West State Street up to February 26, 1995, for the total lien amount outstanding, plus additional interest, penalty and related costs through the date of redemption. Voting results on the motion were as follows : Ayes (2 ) Booth, Gray Nays ( 1) Shenk The motion passed 2-1, and will be sent to the COW meeting. 8 . 1995 SPCA Contract Discussion Pamela Stonebraker, Executive Director of the SPCA, presented a request for a proposed 1995 SPCA contract with the City in the amount of $39, 102 . Stonebraker explained that this would be an increase of $1, 102 over the SPCA contract with the City for 1994 . She stated that the increase is necessary to cover inflationary expenses. She stated that the contract was not increased in 1992, 1993, or 1994. Stonebraker explained that the SPCA is now providing dog control county-wide on a town- by-town basis. Stonebraker stated that the SPCA raises significant revenues to help defray the cost of dog control, including the following: A. Impoundment fees are collected when stray dogs are redeemed. B. Fines are levied in response to appearance tickets . C. Local license fees are collected by the SPCA' s follow-up of monthly license lists . The City' s dog enumeration status and the SPCA contract were discussed. City Controller Cafferillo stated that the City' s failure in recent years to complete a dog enumeration process was caused by a lack of individuals to actually perform the door-to-door enumeration. 10 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 Chairperson Booth stated that the increase in the SPCA contract seemed reasonable, but this item will be discussed during the 1995 budget process . No formal action was taken. 9 . Fire Department A. Fire Contract with Town of Ithaca Discussion Fire Chief Wilbur stated that the fire contract between the Town of Ithaca and City of Ithaca has been handled by the City' s Inter-institutional Committee. City Controller Cafferillo explained that a resolution to approve the fire contract is being requested contingent on the approval of the contract at the Town Board meeting in September. The Committee voted, 3-0, to place the fire contract on the next COW meeting for discussion and approval. The Committee felt that it would be easier to discuss this issue when everyone is in attendance. B. Committee to Proceed into Executive Session The Committee voted, 3-0, to move into executive session to discuss the current status of the firefighter contract negotiations . C. Report from Executive Session After the Committee voted, 3-0, to move back into regular session, Chairperson Booth reported that the Committee received an update on the status of the firefighter contract negotiations from Assistant City Attorney Kennedy and City Controller Cafferillo. No action was taken. 10 . Planning Department A. Request to Provide Funds for FEIS/Findings Statement for Wal-Mart Project Deputy Planning Director Sieverding presented a request to use $17,500 in Unrestricted Contingency Funds to prepare the Final Environment Impact Statement and Findings Statement for the proposed Wal-Mart Project, and to hire a stenographer to prepare a transcript of the Wal-Mart Public Hearing. 11 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 Sieverding stated that the Planning and Development Board, as lead agency, is responsible for preparing the Final Environmental Impact Statement (FEIS) . He explained that the FEIS is the document which responds to all substantive comments made during the public hearing. Sieverding also stated that the FEIS is followed by a Findings Statement, which documents the Planning and Development Board' s decision on the application. He stated that the FEIS must be prepared within 45 days after the close of the public hearing, and the Findings Statement must be prepared within 30 days of filing the FEIS. The Planning Department is recommending that Clough-Harbour Associates be retained to prepare the FEIS and the Findings Statement. It was noted that Clough- Harbour is preparing the DEIS review on the Wal-Mart Project. A discussion followed regard the statements and documents needed. Sieverding stated that a $15,000 fee estimate for the FEIS and Findings Statement has been established. He also stated that a stenographer should be used to prepare a transcript of all the comments from the Public Hearing. The cost for the stenographer is $2,500 . Sieverding explained that the FEIS will include all of the following: 1 . A review of all comments made during the public hearing, and a summary of all substantive issues . 2 . A review and finalization of the issue list with the Planning Board and staff, which will be sent to the applicant. 3 . A review and analysis of the responses . 4 . A meeting with the Planning Board and staff to develop FEIS. Sieverding explained the Findings Statement as follows: 1 . The firm will work with the Planning Board and prepare a draft Findings Statement. 2 . The draft Findings Statement will be reviewed by the Planning Board. 3 . The firm will prepare a final Findings Statement. 12 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 After discussion regarding the work, the following motion was made: WHEREAS, the Planning and Development Board, as the lead agency for the environmental review of the proposed Wal-Mart Project, is responsible for preparing the Final Environmental Impact Statement (FEIS) respecting said project, and WHEREAS, the FEIS document will have to respond to all substantive comments made during the public hearing, and WHEREAS, The City' s SEQR ordinance requires that both the FEIS document and the Findings Statement must be completed within forty-five (45) days following the Public Hearing, and WHEREAS, the Planning Department has recommended that the firm of Clough-Harbour Associates be retained to prepare the FEIS document and the Findings Statement at a cost not to exceed $15, 000, and WHEREAS, a Stenographer needs to be retained by the City to prepare a transcript of all comments made during the Wal-Mart project public hearing at a cost not to exceed $2,500; now, therefore, be it RESOLVED, That an amount not to exceed $17,500 be transferred from Account A1990 Unrestricted Contingency to Account A8020- 435 Planning Contracts for the purpose of: (a) retaining the firm of Clough-Harbour Associates to prepare the Final Environmental Impact Statement and Findings Statement for the proposed Wal-Mart Project for an amount not to exceed $15,000 and (b) retaining a Stenographer to prepare a transcript of the public hearing for an amount not to exceed $2,500. The motion passed 3-0 . B. Request to Approve Mutual Housing Association Refinance Proposal Paul Mazzarella, Executive Director of the Ithaca Neighborhood Housing Services ( INNS) presented a request to approve a Mutual Housing Association refinancing proposal. Mazzarella stated that INHS has applied to the Neighborhood Housing Services of America (NHSA) for a refinancing of the loan made by INHS to MHA for construction funds for Phase I of the Northside Mutual Housing Development. He explained that the City holds a $90, 000 third mortgage on the property. Mazzarella explained that INHS is seeking relief from the City' s 13 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 requirement that no more than $425, 000 in debt be placed in front of the City' s mortgage. He stated that INHS is requesting that the City amend its existing position so that $469,000 in mortgages may be placed in front of the City' s third mortgage. The original Phase I financing for the Northside Mutual Housing Development was as follows: First Position: INHS $212,000 Second Position: Federal Home Loan Bank 207,830 Third Position: City of Ithaca 90,000 Fourth Position: INHS 50,000 The following positions and amounts are proposed: First Position: INHS $262,000 Second Position: FHLB 207,830 Third Position: City of Ithaca 90,000 Mazzarella stated that INHS has committed $200,000 of the proposed proceeds from the NHSA refinance to Phase II of the Mutual Housing Development. He explained that the remainder of the refinancing will be added to the revolving loan fund to assist low-income homeowners and homebuyers . A brief discussion regarding the refinance option followed. The following motion was made: WHEREAS, Ithaca Neighborhood Housing Services, Inc. (INHS) has applied for and received tentative approval from the Neighborhood Housing Services of America, Inc. (NHSA) for a refinancing of the loan made by INHS to the Mutual Housing Association of Tompkins County for construction of Phase I of the Northside Mutual Housing Development, and WHEREAS, the City of Ithaca holds a $90, 000 third mortgage on the Phase I construction of the Northside Mutual Housing Development, and WHEREAS, the City originally established the requirement that no more than $425,000 of debt be placed in front of the City's mortgage on Phase I of the Northside Mutual Housing Development, and WHEREAS, INHS ' s refinancing of the Northside Mutual Housing Development Phase I loan would result in the placement of a total of $469,000 of debt in front of the City' s mortgage, and 14 1. BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 WHEREAS, INNS will commit $200, 000 of the anticipated proceeds from the NHSA refinancing to Phase II of the Northside Mutual Housing Development, which decision will benefit the city by expanding the supply of affordable housing; now, therefore, be it RESOLVED, That Ithaca Neighborhood Housing Services, Inc. be allowed to place a total of $469,000 of debt in front of the City' s third position mortgage on the loan for construction funds for Phase I of the Northside Mutual Housing Development. the motion passed 3-0. 11. Department of Public Works A. Request to Release Funds from Contingency Fund for Transit ADA Superintendent of Public Works Gray presented a request to release $10,000 of Restricted Contingency funds to fund the City' s portion of the 1994 Transit American Disability Act Compliance Plan (ADA) . Gray stated that these funds were placed in restricted contingency during the 1994 budget process. Gray explained that two of the other participants in the Transit Facility (i.e. , Cornell and Tompkins County) will also place $10,000 each into the I.T.T.C. Budget for the ADA plan. He stated that these funds will be used to pay for the ADA coordinator position at the transit facility and assist in the development of the ADA Compliance Plan. The following motion was made: WHEREAS, $10,000 was placed in restricted contingency in the 1994 Budget for the purpose of funding the City of Ithaca' s portion of the 1994 Transit American Disability Act Compliance Plan, and WHEREAS, the funds have been requested by Ithaca Transit in relation to the Ithaca Tompkins Transit Center for the purpose of establishing an ADA Compliance Plan, and WHEREAS, the other Ithaca Tompkins Transit Center entities, Cornell University and Tompkins County, are funding similar amounts to satisfy the Transit ADA requirement; now, therefore, be it 15 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 RESOLVED, That the $10,000 placed in Restricted Contingency Account A1990 be released and transferred to Account A5630-435 Bus Operation Contracts for the purpose of funding the establishment of the 1994 Transit ADA Compliance Plan. The motion passed 3-0 . B. Request for Policy in Fee Determination Superintendent of Public Works Gray presented a request from the Board of Public Works to have the Budget and Administration Committee review various current fees and determine if the fees need to be adjusted. Gray explained that the DPW has a number of fees being charged for various licenses and permits that may not adequately reflect the current cost of providing those items . Chairperson Booth stated that a spreadsheet of the current and proposed DPW fees _ should be created and brought back to the B & A Committee for discussion at a later date. Superintendent Gray stated that he would provide such a schedule. No formal action was taken. C. Transit Budget Discussion Superintendent of Public Works Gray reported that the Ithaca Transit Budget needs to be examined due to two buses with blown transmissions. Gray explained that each transmission failure will cost between $7, 000 - $12,000. He stated that he will come back to B & A next month with more detail on the Transit Budget. D. DPW Personnel Item Discussion Superintendent of Public Works Gray stated that the City Forester recently resigned, and the Department will want to fill this position within the next two months . Gray stated that- he may need to transfer some funds to a contract line to get some of the necessary work done during the interim. It was noted that if the transfers were under $5, 000, the Controller' s Office could approve the transfers. Gray stated he will review the situation further and report back to B & A. Alderperson Shenk was excused for the remainder of the meeting. 16 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 12 . Committee to Proceed into Executive Session The Committee voted, 2-0, to move into executive session to discuss several litigation issues . 13 . Report from Executive Session After the Committee voted, 2-0, to move back into regular session, Chairperson Booth reported that the following action was taken during the executive session: A. Attorney - Request to Transfer Funds for Litigation RESOLVED, That an amount not to exceed $3, 000 be transferred from Account A1990 Unrestricted Contingency to Account A1420- 425 Law Office Expense for the purpose of funding litigation fees. The motion passed 2-0 . B. Attorney - Possible Litigation Chairperson Booth reported that Assistant City Attorney Kennedy discussed with the Committee the current status of litigation involving a City department and the City' s insurance company. No formal action was taken. C. Attorney - Bankruptcy Retainer Discussion Chairperson Booth reported that Assistant City Attorney Kennedy discussed with the Committee possible litigation involving a bankruptcy issue. No action was taken. This issue will be placed on the COW meeting for discussion with the Common Council. 14 . Finance/Controller A. Request to Approve City Investment Policy Deputy City Controller Thayer presented a request to the Committee to approve the City' s updated investment policy. Thayer explained that Common Council approved a written investment policy on November 2, 1988. He explained that under General Municipal Law, the policy must be updated and approved by Council. Thayer presented the Committee with a draft of the revised investment policy. He explained that the investment policy detailed the City' s operative policy to City officers and staff regarding the investing, monitoring and reporting of cash. 17 BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 The Committee discussed the policy and suggested minor wording changes to the agreement. The Committee voted, 2-0, to approve the investment policy with the wording changes and to send it to the COW for approval. (As attached to these minutes) B. Request to Provide Funds for 1994 City Employee Recognition Picnic Deputy Controller Thayer presented a request to transfer $2,500 from the Unrestricted Contingency account for the 1994 City Employee Picnic. Thayer stated that the 1994 picnic will be held on Friday, September 16, 1994, starting at 1 :00 P.M. The Committee agreed that the picnic was a worthwhile City event, and the following motion was made: WHEREAS, the 1994 City of Ithaca Employee Recognition Picnic will be held on Friday, September 16, 1994 starting a 1 : 00 P.M. ; now, therefore, be it RESOLVED, That an amount not to exceed $2,500. 00 be transferred from the unrestricted contingency account A1990 to Account A1430-440 in order to pay for the 1994 City of Ithaca Employee Recognition Picnic. The motion passed 2-0. C. Request to Accept 1993 Annual Financial Report City Controller Cafferillo presented the Committee with the City's 1993 internal financial report. Cafferillo requested that the Committee formally approve the financial report as has been done on an annual basis . After the Committee reviewed various aspects of the report, the following motion was made: RESOLVED, That the 1993 Annual Financial Report prepared by the Finance Department be accepted as presented. The motion passed 2-0 . D. Request to Approve Domestic Partnership Benefit Affidavit City Controller Cafferillo presented a request to approve a Domestic Partnership Benefit Affidavit. Cafferillo stated that Blue Cross/Blue Shield has agreed to allow domestic partners to be included under the City' s health insurance coverage. He explained that for the City to be 18 S BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 able to cover the domestic partners, a partner must complete the proposed Affidavit of Domestic Partnership. Cafferillo presented the Committee with a draft affidavit for discussion. He explained that most of the affidavit, which the State is requiring the City to use, conforms to the City' s Domestic Partnership Ordinance. He explained that the only difference between the ordinance and the affidavit is the question regarding the proof of economic and financial interdependence. Cafferillo stated that the interdependence question is required by the State Insurance Department. He stated that the Mayor has filed a request of waiver for proof of the interdependence issue with the State Insurance Department. A discussion regarding the proposed affidavit followed. The Committee and the Mayor were very concerned about the proof of interdependency for domestic partners, and the fact that this is an additional requirement on domestic partners not normally required of married couples. After a discussion concerning the waiver, the following motion was made: WHEREAS, State Insurance Department guidelines for the inclusion of domestic partners in municipal health insurance programs require an affidavit of economic interdependency to be completed by members of domestic partnerships who seek such health insurance coverage, and WHEREAS, said prescribed State Insurance Department affidavit includes a provision requiring two (2 ) items of proof showing financial interdependency not required in the City' s Domestic Partnership Ordinance, and WHEREAS, a request of waiver from the provision requiring the showing of two (2) forms of financial interdependency has been filed by the Mayor with the State Insurance Department because this condition constitutes an unreasonable demand not required of married couples receiving family health coverage under the City' s existing program; now, therefore, be it RESOLVED, That the prescribed Domestic Partnership affidavit (copy attached) developed in conjunction with Blue Cross/Blue Shield, the City' s health program administrator, be hereby approved, and be it further RESOLVED, That this resolution shall include the Mayor' s letter (dated August 10, 1994; copy attached) filed with the State Department of Insurance requesting a waiver from the provision requiring two (2 ) items of proof respecting 19 b • r BUDGET & ADMINISTRATION COMMITTEE MEETING AUGUST 24, 1994 financial interdependency, and be it further RESOLVED, That should the Mayor' s request for a waiver by the State Department of Insurance be granted, this matter shall be reviewed and brought back to Common Council by the Budget and Administration Committee. The motion passed 2-0 . 15. Other Community Service Report Alderperson Gray reported that the Other Community Service sub-committee met and reviewed 19 of 25 requests for the 1995 Other Community Service funding. Gray stated that recommendations for funding will be made at the next COW meeting. No formal action was taken. 16 . Budget Priorities The Committee briefly discussed some of their 1995 Budget priorities. These included: A. a small tax increase for 1995, and B. expenditures related to dealing with the City' s crime problems . The meeting adjourned at 11 :45 P.M. NOTE: In many cases the actual texts of the resolutions presented in these minutes were prepared following the Committee' s deliberations and decisions on the matters involved. The resolutions presented here are in complete accord with decisions made by the Committee. 20 INVESTMENT POLICY FOR CITY OF ITHACA Adopted: November 1, 1988 Revised: August 24, 1994 I. SCOPE This investment policy applies to all moneys and other financial resources available for investment on its own behalf or on behalf of any other entity or individual . II. OBJECTIVES The primary objectives of the City of Ithaca' s investment activities are, in priority order, • to conform with all applicable federal, state and other legal requirements (legal) ; • to adequately safeguard principal (safety) ; • to provide sufficient liquidity to meet all operating requirements (liquidity) ; and • to obtain a reasonable rate of return (yield) . III. DELEGATION OF AUTHORITY The Common Council ' s responsibility for administration of the investment program is delegated to the City Controller and/or City Chamberlain who shall establish written procedures for the operation of the investment program consistent with these investment guidelines. Such procedures shall include an adequate internal control structure to provide a satisfactory level of accountability based on a data base or records incorporating 1 k'r description and amounts of investments, transaction dates, and other relevant information and regulate the activities of subordinate employees . IV. PRUDENCE All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the City of Ithaca to govern effectively. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the safety of the principal as well as the probable income to be derived. All participants involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. V. DIVERSIFICATION It is the policy of the City of Ithaca to diversify its deposits and investments by financial institution, by investment instrument, and by maturity scheduling. VI. INTERNAL CONTROLS It is the policy of the City of Ithaca for all moneys 2 collected by any officer or employee of the government to transfer those funds to the City Chamberlain within 2 days of collection, or within the time period specified in law, whichever is shorter. - The City Controller and/or City Chamberlain is responsible for establishing and maintaining an internal control structure to provide reasonable, but not absolute, assurance that deposits and investments are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management' s authorization and recorded properly, and are managed in compliance with applicable laws and regulations . Vii. DESIGNATION OFDEPOSITARIES The banks and trust companies authorized for the deposit of monies up to the maximum amounts are: Depository Name Maximum Amount Officer Tompkins County Trust Co. $25,000, 000 Francis E. Benedict Fleet Bank $ 500,000 Paul D. LeBlanc Viii. COLLATERALIZING OF DEPOSITS In accordance with the provisions of General Municipal Law, §10, all deposits of city of Ithaca, including certificates of deposit, repurchase agreements and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured by at least one of the following: 3 1 . By a pledge of "eligible securities" with an aggregate "market value" as provided by GML §10, equal to the aggregate amount of deposits from the categories designated in Appendix A to the policy. 2 . By an eligible "irrevocable letter of credit" issued by a qualified bank other than the bank with the deposits in favor of the government for a term not to exceed 90 days with an aggregate value equal to 140% of the aggregate amount of deposits and the agreed upon interest, if any. A qualified bank is one whose commercial paper and other unsecured short-term debt obligations are rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization or by a bank that is in compliance with applicable federal minimum risk-based capital requirements . 3 . By an eligible surety bond payable to the government for an amount at least equal to 100% of the aggregate amount of deposits and the agreed upon interest, if any, executed by an insurance company authorized to do business in New York State, whose claims-paying ability is rated in the highest rating category by at least two nationally recognized statistical rating organizations . IR. SAFEKEEPING AND COLLATERALIZATION Eligible securities used for collateralizing deposits shall be held by Tompkins County Trust Company, Fleet Bank, and First 4 National Bank of Chicago subject to security and custodial agreements . The security agreement shall provide that eligible securities are being pledged to secure City of Ithaca deposits together with agreed upon interest, if any, and any costs or expenses arising out of the collection of such deposits upon default. It shall also provide the conditions under which the securities may .be sold, presented for payment, substituted or released and the events which will enable the local government to exercise its rights against the pledged securities . In the event that the securities are not registered or inscribed to the City of Ithaca, such securities shall be delivered in a form suitable for transfer or with an assignment in blank to the City of Ithaca or its custodial bank. .The custodial agreement shall provide that securities held by the bank or trust company, or agent of and custodian for, the City of Ithaca, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement should also describe that the custodian shall confirm the receipt, substitution or release of the securities . The agreement shall provide for the frequency of revaluation of eligible securities and for the substitution of securities when a change in the rating of a security may cause ineligibility. Such agreement shall include all provisions necessary to provide the local government a perfected interest in the securities . 5 X. PERMITTED INVESTMENTS As authorized by General Municipal Law, §11, the City of Ithaca authorizes the City Controller and/or City Chamberlain to invest moneys not required for immediate expenditure for terms not to exceed its projected cash flow needs in the following types of investments: • Special time deposit accounts; • Certificates of deposit; • Repurchase Agreements; • Obligations of the United States of America; • Obligations guaranteed by agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America; • Obligations of the State of New York; • Obligations issued pursuant to LFL §24.00 or 25.00 (with approval of the State Comptroller) by any municipality, school district or district corporation other than the City of Ithaca; • Obligations of public authorities, public housing authorities, urban renewal agencies and industrial development agencies where the general State statutes governing such entities or whose specific enabling legislation authorizes such investments . • Certificates of Participation (COPS) issued pursuant to GML §109-b. 6 • Obligations of the City of Ithaca, but only with any moneys in a reserve fund established pursuant to GML S§6- c, 6-d, 6-e, 6-g, 6-h, 6-j , 6-k, 6-1, 6-m, or 6-n. All investment obligations shall be payable or redeemable at the option of the City of Ithaca within such times as the proceed-- will be needed to meet expenditures for purposes for which the moneys were provided and, in the case of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable at the option of the City of Ithaca within two years of the date of purchase. Xi. AUTHORIZED FINANCIAL INSTITUTIONS AND DEALERS The City of Ithaca shall maintain a list of financial institutions and dealers approved for investment purposes and establish appropriate limits to the amount of investments which can be made with each financial institution or dealer. All financial institutions with which the City of Ithaca conducts business must be credit worthy. Banks shall provide their most recent Consolidated Report of Condition (Call Report) at the request of the City of Ithaca. Security dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers . The City Controller and/or City Chamberlain is responsible for evaluating the financial position and maintaining a listing of proposed depositaries, trading partners and custodians. Such listing shall be evaluated at least annually. 7 XII. PURCHASE OF INVESTMENTS The City Controller and/or City Chamberlain is authorized to contract for the purchase of investments: 1 . Directly, including through a repurchase agreement, from an authorized trading partner. 2 . By participation in a cooperative investment program with another authorized governmental entity pursuant to Article 5G of the General Municipal Law where such program meets all the requirements set forth in the Office of the State Comptroller Opinion No. 88-46, and the specific program has been authorized by the governing board. 3. By utilizing an ongoing investment program with an authorized trading partner pursuant to a contract authorized by the governing board. All purchased obligations, unless registered or inscribed to the City of Ithaca, shall be purchased through, delivered to and held in the custody of a bank or trust company. Such obligations shall be purchased, sold or presented for redemption or payment by such bank or trust company only in accordance with prior written authorization from the officer authorized to make the investment. All such transactions shall be confirmed in writing to the City of Ithaca by the bank or trust company. Any obligation held in the custody of a bank or trust company shall be held pursuant to a written custodial agreement as described in General Municipal Law, §10 . 8 The custodial agreement shall provide that securities held by the bank or trust company, as agent of and custodian for, the local government, will be kept separate and apart from the general assets of the custodial bank or trust company and will not, in any circumstances, be commingled with or become part of the backing for any other deposit or other liabilities. The agreement shall describe how the custodian shall confirm the receipt and release of the securities . Such agreement shall include all provisions necessary to provide the City of Ithaca a perfected interest in the securities . XIII. REPURCHASE AGREEMENTS Repurchase agreements are authorized subject to the following restrictions : • All repurchase agreements must be entered into subject to a Master Repurchase Agreement. • Trading partners are limited to banks or trust companies authorized to do business in New York State and primary reporting dealers. • Obligations shall be limited to obligations of the United States of America and obligations of agencies of the United States of America where principal and interest are guaranteed by the United States of America. • No substitution of securities will be allowed without the written consent of the City of Ithaca. 9 APPENDIX A Schedule of Eligible Securities Yes (i) obligations issued, or fully insured or guaranteed as to the payment of principal and interest, by the United States of America, an agency thereof or a United States government sponsored corporation. No (ii) Obligations issued or fully guaranteed by the International Bank for Reconstruction and Development, the Interamerican Development Bank, the Asian Development Bank, and the African Development Bank. Yes (iii) obligations partially insured or guaranteed by any agency of the United States of America, at a proportion of the Market Value of the obligation that represents the amount of the insurance or guaranty. Yes (iv) Obligations issued or fully insured or guaranteed by the State of New York, obligations issued by a municipal corporation, school district or district corporation of such State or obligations of any public benefit corporation which under a specific State statue may be accepted as security for deposit of public moneys. No (v) Obligations issued by states (other than the State of New York) of the United States rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization. No (vi) obligations of Puerto Rico rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization. No (vii) Obligations of counties, cities and other governmental entities of a state other than the State of New York having the power to levy taxes that are backed by the full faith and credit of 11 such governmental entity and rated in one of the three highest rating categories by at least one nationally recognized statistical rating organization. No (viii) Obligations of domestic corporations rated in one of the two highest rating categories by at least one nationally recognized statistical rating organization. No (ix) Any mortgage related securities, as defined in the Securities Exchange Act of 1934, as amended, which may be purchased by banks under the limitations established by bank regulatory agencies. No (x) Commercial paper and bankers' acceptances issued by a bank, other than the Bank, rated in the highest short term category by at least one nationally recognized statistical rating organization and having maturities of not longer than 60 days from the date they are pledged. No (xi) Zero coupon obligations of the United States government marketed as "Treasury strips". 12 _ w V~� `•. ' i .rC CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MATELEPHONE:274-65 CODE 507 August 10, 1994 Donna Freireich, Esq. General Counsel State Insurance Department 160 West Broadway New York, New York 10013-3393 Dear Ms Freireich: In 1990 the City of Ithaca passed an ordinance allowing individuals to register with the City of Ithaca as domestic partners. Earlier this year after Superintendent Curiale's statement of September 29th, that health insurance policies could include domestic partners, the City of Ithaca passed an ordinance providing that in all City labor contracts, when determining when an employee is entitled to receive health insurance benefits for the employee or the employee's family, a domestic partner of the employee as defined by the City of Ithaca Code shall be treated as if he/she were the spouse of the employee. When individuals register with the- City of Ithaca as domestic partners they sign a notarized affidavit of domestic partnership. I am enclosing for your reference a copy of the form. Please note that in paragraph 9 the persons that sign agree that if any person/employer/company suffers any loss because of a false statement contained in the affidavit, they bring a civil action against the signers to recover their losses, including reasonable attorney's fees. In paragraph 10 the individuals certify unddr penalty of perjury that the statements are ,true and correct. The City of Ithaca is self insured with respect to providing health care benefits. The provision of health care benefits is administered by Blue Cross. "An Equal Opportunity Employer with an Affirmative Action Program" Donna Freireich -2- August 10, 1994 When we contacted Blue Cross to advise them that we wanted the domestic partners of our employees to be covered, we were advised that when enrolling the domestic partners they would, in addition to having to execute the City of Ithaca affidavit of domestic partnership, attach two items of proof showing financial interdependence. We have specifically been advised that the requirement of showing two items of proof of financial interdependence is a requirement imposed by the State Insurance Department. I do not believe such a requirement is either fair or reasonable. If an employee wishes to have his spouse or dependents covered for medical benefits, the employee does not need to show any documentary proof. The employee is not required to produce a copy of the marriage license. The City and insurance carriers simply take his:/her word that they are married. Similarly, when a dependent is covered there is no requirement of documentary proof as to the age of the dependent; whether they are going to school or whether they are sufficiently supported. The insured's word is simply taken. Why should it be otherwise for domestic partners? In point of fact, the domestic partners will be signing a sworn notarized statement which is filed under penalty of perjury. Generally the purpose of having a statement notarized is to impress on the signer the seriousness of the statement adding the language that is being certified under penalty of perjury also reduces the likelihood of fraudulent statements being filed. I assume that it could be argued that the affidavit of domestic partnership is a self serving statement. However, the proposed items of proof showing financial interdependence such as a joint bank account or joint credit card being joint obligors on a minimal loan, etc. are also self serving statements. They do not actually show financial interdependence. Further, these joint arrangements go beyond any that are required of married couples. I believe that a sworn notarized statement made under penalty of perjury that the two individuals are each other's sole domestic partner and are economically interdependent is at least as likely to be a reliable form of proof of the financial interdependence. In addition, as a matter fairness, it is not reasonable to require domestic partners to produce documentary evidence when no one else is required to produce documentary evidence as to their marital status or who their dependents are. According, I request that the State Insurance Department allow, as an alternative to the productions of two items of proof showing financial interdependence, that the applicant submit a sworn notarized affidavit certified under penalty of perjury. Donna Freireich -3- August 10, 1994 If you have any further questions or comments regarding this matter, please do not hesitate to contact me. Please advise me at your earliest convenience as to what position the State Insurance Department will take in this matter. Very tmy your Benjamin Nichols Mayor BN/cw Enclosure -AUG-24-94 WED 7:44 BLUE CROSS FAX NO. 3154484999 P. 02 State of Nov York AFFIDAVIT County of Tompkins of Domestic Partnership We declare under penalty of perjury that the following statements are true and correct: 1. we, and currently live together. 2. We are both 18 years of age or older and mentally competent to enter into a contract. 3. Neither of us is married. 4. We intend to continue to live together and are committed to the care and support of each other. 5. We are each others sole domestic partner and each has no other domestic partner and we intend to remain each other's sole domestic partner. 6. We are not related by blood closer than would bar marriage in the State of New York, 7. We are not in our relationship solely for the purpose of obtaining health care coverage. S. We understand that another Affidavit of Domestic Partnership cannot be filed until,6 months after a Statement of Termination of Domestic Partnership of a previous partnership has been filed with the Clerk for the City of Ithaca. 9. We are economically interdependent. We attach the following 2 items of proof showing our financial interdependence: — a joint checking, bank or investinent account. — a joint credit card. — joint obligor on a loan, — joint ownership of a residence. — joint appearance as tenants on the lease for our residence. joint ownership of a motor vehicle. PW 1 a12 �JU L"t. V'4 f`ILV . "'s'[ L.ILVL V31V..J.J L 1111 11V. Ji J`t'tV"fVVV i . UJ executors or beneficiaries of each others'wills. durable powers of attorney for each other. health care agents for each other. a life insurance policy of one designating the other as a beneficiary. a retirement benefits account of one designating the other as a beneficiary. Name Name (P&O fim Mi"O wt Oft) rwa C u+t address address signature signature Sworn-pro before me this day of . 191 Notary Public 7144 DPA-1 Pap 2 o(2