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HomeMy WebLinkAbout09-03-02 Personnel & Finance Contain-it* report Vitrzotunei a1ti finance Commit The September 3,2002 meeting of the Personnel and Finance Committee was called to order by its Vice-Chairperson, Council Member David Varner at 3:32 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Varner, Kirsits, Coleman and Kelly;City Controller Rick 011ett, Director of Budgeting & Financial Reporting Tom Skarbek, Fiscal Officer Rahman Johnson, City Engineer Carl Littrell, Central Services Director Matt Chlebowski,Division of Environmental Services John J. Dillon, Director of the Bureau of Sewers and the Bureau of Streets Sam Hensley, Director of Water Works John Stancati, Fiscal Officer Jill Stevens, Fiscal Officer Roxanne Hayden, Fiscal Officer Jennifer Niezgodski, Fiscal Officer Joe Kuzmits and Kathleen Cekanski-Farrand, Council Attorney. Council Member Varner welcomed everyone to the 3rd Committee meeting on the proposed 2003 Civil City Budget. He noted that a quorum of the Committee was not present, however the Council Members present would go forward in receiving information and hearing presentations on the proposed budgets. Mr. Gary Gilot provided an overview to the 2003 Public Works budget requests(summary of remarks attached). Mr. Gilot stated that the overall public works budget is approximately $45.5 millon; with $7.2 millon or 15.8% being supported by property tax and $38.3 million or 84.2% being supported by such user fees as the gas tax and water & sewer rates. He noted that Motor Vehicle Highway (MVH), Local Road and Streets (LRS) and the Sewage Works will not be balanced. There has been a $2 millon reduction in state funds, noting that the amount of LRS funds not be sufficient to preserve the pavements at a "sustainable return interval for paving". Funding is also lost since the city is unable to make the 20% match on the 80% amount received from the federal government. He noted that the hydrant rental funds will help"shore up"the funds in the short term. Mr. Gilot stated that there has not been a sewage rate increase since 1989, and without a rate increase it will operate in the red in 2003. More wastewater is treated today than in 1989 and over $6 million has been invested in capital. At the request of the State Board of Accounts, a Street Department Division has been created as part of the General Fund. It will segregate the Traffic & Lighting expenses from the Engineering Division of the General Fund; and will account for the Street Department fuel usage and repairs to equipment. Mr. Gilot concluded his remarks by noting that public works provides a diverse array of"quality products and services" from safe drinking water, protecting the St. Joseph River quality, to infrastructure design and construction projects such as the expansion of Crowe Chizek,Tire Rack, TJX and Tech Data. Mr. Gilot noted that his department has begun a strategic review of openings as people leave employment. There have been 24 employee positions eliminated, all by attrition. One of his primary goals is to be more effective and efficient in providing services. In response to a question from Dr. Varner, Mr. Gilot indicated that each of the Bureau Managers would indicate the number of employee position eliminated during their presentations. Personnel and Finance Committee September 3, 2002 Page 2 Engineering Division 2002 Expenditures $ 7,044,458 General Fund # 101-0602 2003 Expenditures $ 3,749,572 Mr. Littrell noted that approximately one-half million dollars is being generated and deposited into the General Fund as a result of the hydrant rental fees. Transfer ordinances are expected to be filed later this year. He noted that there are two (2) proposed changes in the titles of employee positions. An $18,000 increase is sought in temporary and seasonal to assist on the GIS System. An increase of$12,500 is requested for education, training and travel, all of which is related to the GIS System. Once the employees are trained, they would all then be cross-trained. He noted that Community Development have offered to pay for one(1) engineering position for engineering and inspection services related to such projects as the Good Neighbors/Good Neighborhoods. Mr. Littrell highlighted the many public works projects such as TJX, Tech Data and other demolition projects, corridor projects, bridge programs, signal modernization, sewer and water extensions, and storm water management. Phase II of the storm water management had a deadline of March 3, 2003 which is expected to be pushed back by 6-9 months. A storm water management plan will help alleviate basement and intersection flooding. Mr. Littrell stated that he hopes to have a draft of the Storm Water Management Plan ready by the end of September: and he will send it to the Council for review and comment AEP has made changes in the downtown area and has lowered the voltage system. As a result the fences seen in the downtown have been taken down. AEP is now operating at 13 KV and have invested approximately$8 million. Mr. Littrell commended Investigator Marcia Qualls for her action with customers and improving communication. He stated that on-line bidding for public works projects is being utilized using South Bend Drafting. As a result additional costs for reproduction are anticipated. Mr. Littrell stated that GIS is"moving along nicely"and that the county has started to bring across "deliverable data". He noted that the infrastructure protection program a/k/a"Holy Moly Program" has worked well and there were no major underground lines cut this year. Dr. Varner inquired what part of the GIS would be available online and what portions would be available to the general public. He noted that it appears that there is a reluctance based on what he has heard at MACOG meetings and that it appears to be counter to what other communities are doing in this area. Mr. Gilot stated that the City are partners in the project but are not the lead agency. Since significant taxpayer monies are involved the data and access should be as available as possible. Dr. Varner requested Mr. Gilot to pass on this position that the GIS should be accessible, and if a letter from the Council is necessary he would suggest that that be done, noting that$4-5 million would be spent on the project plus yearly expenses. Mr. Gilot noted that in the area of public works, 4 employee positions in Streets, 8 employee positions in Water Works, 7 employee positions in Solid Waste, 1 employee position in Traffic & Lighting and 4 employee positions in water/sewer have been eliminated by attrition. Personnel and Finance Committee September 3, 2002 Page 3 MSF Building Maintenance 2002 Expenditures$ 749,905 General Fund # 101-0606 2003 Expenditures$ 760,965 Sam Hensley made the presentation. He noted that there is an increase in personnel costs for on call duty which is 24/7. A $0.70 increase per hour has been included. They are currently going through a punch list, but will be moving into the new building soon. Council Member Kirsits inquired when the open house would be. Mr. Hensley stated that it should be in late September and will be in conjunction with City on Display. In response to a question from Dr. Varner, Mr. Hensley noted that the title for the building will be the Public Works Service Center. The proposed budget is for both buildings. Traffic & Lighting Division 2002 Expenditures$ 0 General Fund # 101-0607 2003 Expenditures$2,678,744 Mr. Hensley noted that one(1) hourly position has been eliminated. $3,000 has been added to the overtime budget to cover the extra time spent on special events such as Sunburst, Notre Dame football, etc. Mr. Gilot noted that the city is continuing to experiment with plastic coatings for street markings. They are trying to get MACOG to buy in bulk for such LED's and are looking at other new technologies which will last from 7-10 years. Motor Vehicle Highway Division 2002 Expenditures$ 3,402,990 Fund # 202 2003 Expenditures$ 3,769,013 Mr. Hensley stated that four (4) employees have been eliminated through attrition. 10-13 heavy equipment operators have been upgraded. Mr. Hensley noted that they now have one (1) pot hole patcher which cost $ 150,000. It is designed to be a one-person operation with a permanent plug for pot holes. He noted that it should be more efficient than the county's pull behind unit which requires three (3) employees. It can be operational between April and the next January. Council President Kelly inquired whether the department has enough equipment for their pot hole patching operations. Mr. Hensley stated that major arterials are addressed first and cold patch materials will be used in the winter months. He noted that the city should see a difference by 2003. Mr. Hensley also noted that in 1981 a bomag machine was purchased. It was recently used on Hill and Niles and also at Washington and Colfax and suggested that the Council look at the results at those locations. Sixty-seven (67) blocks have been addressed to date. Mr. Gilot noted that they hope to get with the state officials to see if the newly re-surfaced alleys would qualify the city for more state funding based on adding these areas to the total the city has of hard-surfaced roadways. The city maintains an Official Inventory which triggers such funding. , Personnel and Finance Committee September 3, 2002 Page 4 Mr. Hensley then reviewed an enlarged map entitled "Roadway Repairs 2002". In response to a questions from Dr. Varner, Mr. Hensley noted that the map was GIS generated. He noted that the repairs are evenly divided in the four (4) areas of the city, namely in the NE, SE, NW and SW. $865,000 has been budgeted for these projects, and there are 375 more to do. He also noted that a special asphalt is being used in the 5th to cover concrete streets. It was also noted that the street sweeping charge of$ 8,900 is to address state highways. Mr. Gilot again noted that the MVH fund is not balanced. He also highlighted that the city will not qualify for as much funding from the federal government on its 80/20 match program, because the city does not have the 20% match. They are looking for a "long-term sustainable solution". He then noted that following: South Bend $1.25 million for paving St. Joseph County 40 miles of chip&seal Mishawaka $158,000 for paving Elkhart $250,000 for paving In response to a question from Dr. Varner,Mr. Gilot noted that MVH fund distribution is based on the number of mileage. He also noted that Indiana is$0.08 below Ohio. He stated that the State of Indiana retains a total of 10,000 under its control. Mr. Gilot noted that the city paid $32.65 per ton for salt and $ 0.80 per gallon for anti-icy materials. last year the City of Mishawaka was forced to buy salt from South Bend when it could not located any other sources for salt. It was sold at $39.93 per ton. St. Joseph County will be purchasing salt at$35 per ton for the 1st 4,000 and $49 per ton for the last 4,000 tons. Project Releaf 2002 Expenditures$155,999 Fund # 655 2003 Expenditures$108,511 2002 Revenue $154,440 2003 Revenue $154,440 Mr. Hensley stated that this budget is status quo. Forty (40) temporary employees will be hired at an hourly rate between $7.50-$8.00. Twenty (20) will be hired the 1st week,and twenty(20) will be hired in week two so that the city will be able to have a 5-week program. The city utilizes eighteen (18) tandem axle trucks, of which 12 were purchased in 1989 and 4 were purchased in 1990. They were originally supposed to have a 5-year life. Dr. Varner thanked Mr. Hensely, Mr. Littrell and Mr. Gilot for their presentations. South Bend Water Works Fund # 620, 621, 622, 624, 625, 628 & 629 `02 Expenditures `03 Expenditures Operating 620: $ 8,006,216 $ 8,413,207 Water Works Sinking 625: $ 3,317,253 $ 3,380,020 Water Works Capital 622: $ 1,328,454 $ TBD in Feb'y `03 Total Op, Debt & capital $ 12,651,923 $ 11,793, 227 Mr. John Stancati made the presentation. He presented a handout entitled"10 Year History of the Personnel and Finance Committee September 3, 2002 Page 5 South Bend Water Works" (copy attached). He noted that revenues are projected to decrease by .5% due to the loss of interest on investments. The revenues do not reflect summer pumpage. Personnel reflects a decrease of eight(8) employees by attrition. The in lieu of tax line item is up to $ 1,065,003. Mr. Gilot noted that they are experiencing an increased cost in pavement repairs, noting that the cuts into the pavement by private companies are often not done properly and that they have upgraded the required engineering standards which must be met. They give out cd's which have the new engineering standards on them. Council President Kelly inquired how many persons utilize the automatic deduction program. Roxame Hayden stated that only 1.5% of the Water Works customers utilzie automatic deductions for payment. She noted that the City must promote the program more. Council Member Kirsits inquired about reading meters. It was noted that the "MR Program" only requires a drive by and can go deep four(4) blocks. Water Repair/Insurance Fund 2002 Revenue: $657,502 Fund # 644 2003 Revenue: $731,986 2002 Expenditures: $656,182 2003 Expenditures: $721,149 Mr. Stancati noted that there is no real history for this area. This area addresses the stop box-valve outside of the house. The"straight cost"is$ 275.00 for a single job. Council Member Kirsits suggested that the Water Works Department check the wavey pavement on Michigan Street where AEP put their lines in recently. Mr. Stancati noted that he would. Central Services-Equipment Services 2002 Revenue: $2,320,392 Fund # 222-0605 2003 Revenue: $2,408,775 2002 Expenditures: $2,317,370 2003 Expenditures: $2,407,094 Mr. Matt Chlebowski, Director of Central Services made the presentation. He noted that there are no personnel changes proposed for 2003, however when the new Public Works Center is operational, there may be adjustments in 2-3 positions. In response to a question from Council President Kelly, Mr. Chlebowski stated that because of bulk purchasing his Bureau has been able to stay within budgeted amounts. In response to a question from Dr. Varner, Mr. Chlebowski stated that they budgeted for gasoline at $1.75 per gallon and that they have been able to purchase it in the $1.18-$1.24 range; plus depending on the department that uses the gasoline they are also able to apply for a tax rebate. Dr. Varner requested a net cost update on gasoline by the end of the year, which Mr. Chlebowski agreed to provide. Personnel and Finance Committee September 3, 2002 Page 7 Solid Waste Division 2002 Revenue: $ 4,059,439 2003 Revenue: $ 4,061,439 Solid Waste Operating Fund 2002 Expenditures: $ 3,898,971 Fund # 610 2003 Expenditures: $ 3,656,551 Solid Waste Depreciation Fund 2002 Expenditures: $ 4,050,813 Fund # 611 2003 Expenditures: $ 3,808,393 Mr. John J. Dillon, Director of the Division of Environmental Services made the presentation. Mr. Dillon stated that last spring a pilot program took place in the Near Northwest Neighborhood involving 600 customers, or 1% of our customers. They utilized semi-automatic pick-up devices. They would like to work to see if they could become fully automatic. Mr. Dillon stated that the division has reduced its personnel by seven(7) employees. Mr. Dillon will be back in December to talk about purchasing state of the art equipment. They are looking at one-person trucks. Employees are still experiencing on-the-job injuries. They have had two(2) vehicle accidents this year,compared to fourteen(14)in 2001. He noted that their gasoline account is down $ 7,000 since fewer trucks are out, and their has been an overall 6% budget reduction. Dr. Varner inquired whether the specs for the bids have been written, and suggested challenging the union with innovative methods to deliver better service. He stated that the City must be competitive and raise the quality of our service. He stated that this question needs to be looked at before we go out to bid for new equipment. Dr. Varner inquired whether all the trash trucks have radios, and suggested that they use the radios when they see heavy equipment items out for pick-up. Mr. Dillon indicated that all trucks are equipped with radios,however noted that they have found that if someone puts a large item out and has not called for pickup, and if the City picks up that item, the person putting it out then demands reimbursement for the item Mr. Gilot added that this bureau has struggled with efficiency. He stated that they are committed to the"Clean City"theme, and may be trying a pilot program in the near future. Mr. Gilot stated that this program must be competitive with the private sector, and must be as efficient as the private sector. They will be evaluating all of the operations of this bureau closely. Council Member Kirsits inquired about whether the city is still considering getting the trash pick- up services out of the alleys and have pick-ups street side. Mr. Dillon stated that they have thought about it, however such neighborhoods as Keller Park have expressed concern if alley pick-up is eliminated. Mr. Dillon stated that the city picks up 400-450 extra pick-ups per week. It is costing the city$22 per refrigerator to remove the freon,which the city does not charge the customer. Mr. Gilot stated that he would like to have "experimentation as transparent as possible to the public"; and that they will be discussing options such as re-routing and will brainstorm since they know that this is an area that needs improvement. Personnel and Finance Committee September 3, 2002 Page 8 Sewage Works 2002 Revenue: $ 13,472,500 2003 Revenue: $ 13,077,000 Sewage Operation 2002 Expenditures: $ 2,773,833 Fund # 641-0621 2003 Expenditures: $ 2,750,675 Wastewater Operation 2002 Expenditures: $ 377,970 Fund # 641-0630 2003 Expenditures: $ 365,700 Mr. Dillon noted that they will have less revenue in 2003 in light of less interest being earned. They have eliminated three (3) employees by attrition. Heating and electrical expenses have been reduced by $250,000. They use the methane gas which they produce. They have a contract with NIPSCO and have saved$40,000. Other contractuals are up $280,000 in order to clean the digesters; with this being a one-time expense. They have depleted their reserves and will be talking with the Council about a rate increase Mr. Dillon stated that the CSO permit was issued in June 2002. They need to have programs in order to educate the public about the Storm Water Master Plan. The $24 millon construction program is completed. Mr. Dillon stated that the CSO-45 is the last one on our line. In August 2002 the city had a 2 inch rain. Under the old program, 15 millon gallons of diluted sewage waters were directed into the St. Joseph River. Under the new CSO-45, less than 1 million gallons of diluted sewage waters were directed into the St. Joseph River. Long term expense will cost an estimated$100 million over the next twenty(20) years. In response to a question from Dr. Varner, Mr. Dillon stated that the city has between 36-37 CSO's. Leland has one of the largest ones. Council Member Coleman stated that he took a tour of the facilities two(2) weeks ago. He viewed the new $4 million blower and the headworks and noted that this Bureau is always looking for other methods to make their operation better. The Council Attorney asked Mr. Gilot if his department has updated the unfunded federal mandate list which was last given to the Common Council in the last years of Mayor Kernan's administration. Mr. Dillon noted that he has seen that list. Mr. Gillot stated that he would get back to the Council and provide an updated listing of the projects and costs of projects which are mandated by the federal government and are currently unfunded. Dr. Varner in•uired about whether new subdivision re ulations are bein considered addressin• such items as retention basins, noting that an educational component needs to be included, and further stressed the need to update our regulations as technology changes. Mr. Gilot noted that the city is required to comply with the NPDE permit process. There are also several new Clean Water Act regulations which require the cleaning of catch basins. The City has set up a plan to clean out the lines every four(4) years,with more preventive monitoring being f ' r Personnel and Finance Committee September 3, 2002 Page 9 considered. He added that they have received fewer complaints of basement flooding. Mr. Dillon stated that they will be receiving $30,000 from the State of Indiana as part of being awarded an environmental award for utilizing their own methane. Dr. Varner thanked everyone for their presentations. There being no further business to come before the Committee, Dr. Varner adjourned the meeting at 5:47 p.m. Respectfully submitted, Council Member David Varner, Vice-Chairperson Personnel and Finance Committee KCF:kmf Attachments