HomeMy WebLinkAbout08-28-04 Personnel & Finance 6,n2,12‘
ommittEE cRE/�o't of t 2E
.Ezlonne- and 9inaneE (ommittEE of t/iE CSouutI Evict Common Council
The Saturday, August 28, 2004 meeting of the Personnel and Finance Committee was
called to order by its Chairperson, Council Member Derek D. Dieter at 9:03 a.m. in the Council
Informal Meeting Room.
Persons in attendance included Council Members Dieter, Varner, Kuspa, Pfeifer,
Puzzello and Kirsits; City Clerk John Voorde, Mayor Stephen J. Luecke, Public Works Director
Gary Gilot, Rick 011ett, Tom Skarbek, Jack Dillon, John Stancati, Sam Hensley, Carl Littrell,
Matt Chlebowski, Cleo Washington, Joe Kuzmits, Cheryl Lips, Rahman Johnson, and Kathleen
Cekanski-Farrand, Council Attorney.
Council Member Dieter noted that the Committee is composed of Council Members
Kelly,Puzzello, Varner and himself.
Council Member Dieter thanked everyone for coming in on a Saturday morning and
thanked Council President White and City Clerk for bringing in donuts.
Council Member Dieter noted that Tom Skarbek has provided replacement pages for:
Project Releaf(3 pages), Central Services(7 pages)and Motor Vehicle Highway(2 pages)
Council Member Dieter then turned the meeting over to Public Works Director Gary
Gilot for a presentation on their 2005 budget requests and operational needs.
2005 Public Works Proposed 2005 Budget $46,933,798.00 -0.05% Change
Mr. Gary A. Gilot,Public Works Director provided a spiral-bound handout entitled"2005
Public Works Budget" (copy attached) and highlighted each page in a power point presentation.
He noted that his depai tnient is committed to the City's goal of "Building a 21st Century City"
and addressing being"A Safe City; A Clean City; A Technology Competitive City; and A Smart
Growth City". He stated that his department is committed to implementing proactive and
innovative programs which will raise the bar for city services.
Mr. Gilot stated that the proposed 2005 departmental budget is approximately $47
million, with less than$7 million be property tax supported and the remaining$40 million being
supported by user fees, gas taxes and water & sewer rates. There are insufficient revenues in
Motor Vehicle Highway (MVH) and Local Road and Streets (LR& S). Wheel taxes began in
2004 and are bringing in about $2 million in revenue each year, all of which is invested in the
city's paving program.
Mr. Gilot noted that the 24% Sewage Works rate increase resulted in an additional $3
million which has been used for capital and to repay the State Revolving loan ($24 million) and
to support the revenue bond for two years ($11 million). In January 2005 an additional 5% rate
increase will take effect. The Advisory Committee has met four times and will meet again in
September.
Personnel and Finance Committee Meeting of August 28,2004 Page 1
eommittEE cRE2o't of tI
�E'LsonnEL and 9inanaE eommittLE of tI cSoutI &ncI?ommon founeit
Mr. Gilot then summarized the number of full time employees in the Department of
Public Works, namely: General funded employees in Engineering, Building Maintenance and
Traffic and Lighting total 40; 75 employees in the Street Department, plus 40 temporary
employees working for five weeks in the Fall for a total of 200 hours each on Project Releaf; 86
employees in Water Works; 31 employees in Solid Waste; 79 employees in Sewage and
Wastewater and 50 employees in Internal Services-Central Services for a grand total of 361
full-time employees in the Department of Public Works. He noted that 10 positions have been
eliminated and 4.5 positions have been added, with 17 positions being reclassified or upgraded.
Some examples included the individual who is the GIS Analyst who has a Masters degree and
the five chemists who are a self-directed team. Mr. Gilot then called upon each of his Directors
to provide information on each of their operations.
Matthew Chlebowski, Director of Central Services introduced Joe Kuzmits, his fiscal
officer. He provided the Committee with a spiral-bound "Division of Central
Services--Division & Equipment Status Report 2003" (copy attached). He noted that they
handle over 13,000 purchase orders annually; have a computerized fleet maintenance system;
handled 161 taxi cab licenses and 129 taxi driver licenses; and oversee the GASBOY fuel system
for all vehicles. He noted that the annual report sets forth mileage and fuel usage. Fleet
operations include a 2 pm-10pm shift with operations from 6 am to midnight. They have the
only pump testing station for fire trucks in the state of Indiana which tests pressures and
volumes.
Mr. Chlebowski then summarized the operations in Building Maintenance which
provides service to fourteen(14) facilities; and Fleet Operations.
In response to a question from Council Member Deiter, Mr. Chlebowski stated that the
average amount of vehicle repairs is between 150 to 200; with the largest number coming from
the Police Department and many being weather related. They have monthly job analysis with
their goal being a 98%rate of fleet being operable.
Mr. Chlebowski then summarized the operations in Central Services which maintains
approximately 6,000 parts in inventory making them readily available over the weekend, and
Central Stores which averages $350,000 in volume annually. The Print Shop averages 3.7
million impressions annually.
In response to a question from Council Member Deiter, Mr. Chlebowski stated that the
Print Shop prints forms for the St. Joseph County Sheriffs Office. He also thanked the Print
Shop employees for putting the today's handouts together.
Mr. Chlebowski then summarized the operations in the Radio Shop which brings in
annual revenue of approximately$18,000 from services provided to four(4)outside agencies.
Personnel and Finance Committee Meeting of August 28,2004 Page 2
CommittLE c1?42o¢t of tf n (� r Common J�
�E'LS0I2I2EL and 9inanaE £?ommUtttE of ti2E�OLtti2 BEnc (...:om non Council'
Mr. Chlebowski noted that his operations have received several awards over the years
including: 2000 Indiana 5-Star Environmental Recognition Award from the Indiana Department
of Environmental Management; Special Recognition from MACOG's Partners in Clean Air,
Certificate of Appreciation from IUSB for student internship program; and he also noted that
special needs students from the South Bend Community School Corporation also coop in the
mechanical field for a full school year.
Mr. 011ett then provided two (2) handouts on the vehicle fleet, namely a 2-page
document entitled "Take Home Vehicles" and a 9-page document entitled "Take Home
Vehicles" showing that 345 vehicles ad 3,834,894 miles in 2003 and consumed $357,586.05 of
fuel, and that from January thru June 2004 the vehicle fleet had 2,179,910 and consumed
$253,792.78 in fuel (copies attached) with these documents having been previously requested by
Council Member Dieter.
Council Member Pfeifer suggested that the city put their many types of equipment on
display for the public to see. Mayor Luecke noted that in the past a "City on Display" forum
took place at Scottsdale Mall and Century Center; and welcomed the suggestion.
Engineering Division $3,672,739.00 requested in 2005 -1.80%
Building Maintenance $ 673,381.00 requested in 2005 -14.25%
Traffic Lighting $2,244,633.00 requested in 2005 - 1.99%
City Engineer Carl Littrell then reviewed the operations in the Engineering Division
which has a total of 22 full-time employees. He summarized some of the projects involving
design, review and permits; and noted that several projects have been summarized by district in
the booklet. There is approximately$28 million in 2004 construction contracts.
Council Member Pfeifer inquired about the quality of work and the standards used for
various projects and in particular the Humbolt Project. Mr. Littrell stated that contractors are
bonded for three (3) years; however the Humbolt Project utilized CDBG monies and was a
Community Development project. It would however be governed by the same quality of work
standards. He offered to talk with Council Member Pfeifer later about this project. Council
Member Pfeifer voiced concerns about handicap accessibility with regard to sidewalks by Karl
King Towers and the Council Attorney noted difficulty for persons in wheel chairs by the
intersections in the downtown area by the County-City Building blocks. Mr. Gilot noted that
some of these areas will be addressed and that he would get further details for Council Member
Pfeifer.
Council Member Kirsits noted that every Councilmanic District has areas where there are
no curbs at all and inquired if the City would be addressing this, noting that the City of
Personnel and Finance Committee Meeting of August 28,2004 Page 3
COmm tEEpcREf zest of az p
�E'LsonnEL and 9inanaa eonm ittEE of the cSsottI _and(?O1 mon eow wi
Mishawaka has a program addressing this. He also noted that there are several homes on wells
and asked if this would be addressed.
Mr. Littrell stated that there are no programs currently in place, however the Good
Neighbors/Good Neighborhoods Program shares the cost 50/50 with the homeowner. Mr. Gilot
stated that Barrett law, developers or the homeowners have funded to put curbs and sidewalks.
He noted that the there are alot of additional costs involved for design and drainage, etc.
In response to a question from Council Member Puzzello, Mr. Gilot stated that a petition
from the neighbors requesting curbs, etc. would be one approach which would start the process.
Mr. Gilot noted that the conversion of signal bulbs to LED's will be more cost efficient,
noting that the cost for an LED is $150 which have a ten-year life while the signal bulbs cost
$1.50 each with a very limited life. He also noted that lamp posts in Historic Districts cost
$4-5,000 however the carriage lights program under the Pilot Lamppost Lighting Program
include 200 lights at $400 each with the city's cost being $200 each. He also noted that such
lights can be placed where there are high levels of activity which make the areas more walkable.
The program is $80,000 with $40,000 being the homeowners share which is reappropriated. Mr.
Gilot also noted that security lights are installed with the city paying the first year of operation
and the property owner paying the costs thereafter.
Dr. Varner noted that the costs are based on a tariff basis except those in historic
districts, where the city owns the lights. He voiced concern that there may be an equity issue and
asked the Administration to review the program.
Council Member Kirsits noted that he recalled that the program was for 300 lights at
$1,000 each.
Mr. Gilot stated that three (3) blocks on Sunnymede as well as portions of Jefferson and
LaSalle are part of the program. There are four(4) components for a total of$350,000 which he
stated he would provide in greater detail.
Mayor Luecke noted that they will have ongoing evaluations of the program.
Mr. Littrell stated that Frederickson Park would be dedicated in the next month or so.
Mr. Littrell noted that Metro Net Development is a private/public partnership for traffic
signals which is designed to meet the needs of universities, businesses, etc. to get information
from the information super highway. He noted that the city is in partnership with the Chamber
of Commerce and the University of Note Dame.
In response to a question from Council Member Dieter, Mr. Littrell stated that they are
currently in Phase I and that there is a 3-5 year plan for customer service.
Personnel and Finance Committee Meeting of August 28,2004 Page 4
d ommittEE acli2o'Lt of the
�ErL.sOYlnEL an gin,anez eonvIZLttEE of tL SoutI fREI2d eOYI2YYLO12 eo1.6t2e
Mr. Gilot noted that the $350,000 appropriation was from COIT dollars with four (4)
components of$120,000; lamp posts for $80,000; $50,000 for the dam; and $100,000 for the
downtown.
Former Council Member and former State Senator Cleo Washington then addressed the
Committee, noting that he was an attorney with SBC. He stated that in the summary of
information on the Metro Net Development the city administration noted that the program
included the conduit and a perimeter ring to be in place in 3-5 years. Mr. Washington inquired if
there was a memorandum of understanding addressing this project and asked what the Council's
involvement was in the project. He noted that it was mentioned that the University of Notre
Dame and the Chamber of Commerce were mentioned as partners, however it is his
understanding that the Chamber has not put any money into the project. He noted that his
research shows that the not-for-profit corporation shows that the MetroNet incorporator is Pat
McMahon and that the information available from the Secretary of State's Office shows that
Karl King and Carl Lishon are also listed. He questioned what liability the city may have as a
result of the project.
Mr. Gilot stated that the project involves $600,000; conduits and 24 signals as well as
municipal purposes. MetroNet would raise private capital and piggy back it so that void space
could be built out. There is a MetroNet Board. Other partners include IUSB, Ivy Tech,
MACOG, and a number of industrial and medical facilities.
Mayor Luecke stated that MetroNet is a work in progress.
Dr. Varner stated that he was glad that Cleo Washington asked these questions since the
Council has only received a very generic presentation on MetroNet. He stated that the Council
would be interested in seeing the incorporation papers, a listing of appropriations from the city
and each of the partners and any fees which may be charged for rental. He noted that this is a
good example of why Bill No. 32-04 which is currently pending is needed.
Mr. Gilot offered to give a presentation on MetroNet, noting that it is a "work in
progress". He also noted that there are no fees in place.
Council Member Pfeifer asked how many phases there are in the MetroNet project and
asked that the Council be updated on a regular basis.
Mr. Gilot stated that the Board has been established and that he would get that
information to the Council.
Mr. Washington noted that SBC has over 400 employees and pay $1.3 million in taxes
per year. He noted that SBC has never asked for personal or real property tax abatement from
the city. SBC employees have voiced concern about the subsidy to MetroNet. They have no
Personnel and Finance Committee Meeting of August 28,2004 Page 5
Comm'ittEz c z fro't of tz
. E.m.onnef ani 9inanea £ommitt of t c'outI Common Council
problem with competition from the private sector, however this is different. He stated that he is
at the information gathering stage and has spoken to the Mayor about these concerns. He noted
that there are alot of unanswered questions.
Council Member Pfeifer suggested that MetroNet be added to the topic list each month
as part of the administration's monthly meetings.
Council President White stated that topics should be identified so that they can be
prioritized.
Mayor Luecke noted that the Council should take advantage of the monthly meetings.
Mr. Littrell then briefly reviewed operations in GIS and GPS.
Bureau of Streets $3,736,053 requested in 2005 3.16%increase
Project Releaf $ 264,160 requested in 2005 77.20%increase
Sam Hensley, Director of the Bureau of Streets and the Bureau of Sewers then made a
presentation on his operations. He provided an 11-page handout entitled "Bureau of Streets"
(copy attached) which included among other things the Quadrant Map, Asphalt Usage in 2004,
Outstanding Paving Projects in 2004, completed projects, and "Special Projects 2004". He
noted that 47,000 tons have been paved and that there are 11,500 tons yet to go this year. In
2003 46,000 tons were paved,with the city starting to pave streets in 1969.
In response to a question from Council Member Pfeifer, he noted that over the years the
crown in many places is higher than the curb. Curbs take a tremendous amount of labor to mill
and address drainage.
Council President White inquired about how the city determines top priorities for special
projects. Mr. Hensley stated that the priorities are selected by the administration.
Dr. Varner noted that there should be consistency of cost accounting in light of the
charge for labor and the Releaf Program. Mr. Gilot noted that there is alot of horsetrading which
takes place, but agreed to look into this concern. He added that South Bend is just one of 3-4
cities that do its own paving.
Mr. Hensley added that crack sealing is one of the best maintenance programs which the
city has in place. The city utilizes a Michigan company for the crack-seal program. In response
to a question from Council Member Puzzello,Mr. Hensley stated that a Council Member would
just have to call him if they have a street which needs attention, noting that they average 25
streets per year.
Personnel and Finance Committee Meeting of August 28,2004 Page 6
eommittEz cRe/iort of t
zt3.onnzi and 9inanez eonzinittzz of dm.cSout/i BEnd eommon eouneit
Council Member Pfeifer requested a print-out of the streets which are to be
crack-sealed this year.
Council Member Kirsits noted that in some cases only part of the alley is bad and that not
all of it needs to be graded. Mr. Hensley stated that the Council Members should call him with
such locations.
Council Member Puzzello inquired about the street sweeping program when there are
parked cars. Mr. Hensley stated that the routes are set and that they just go around the vehicle
since materials would continue to accumulate and eventually end up clogging the catch basins.
He added that they have contact Chief Fautz for assistance with regard to temporary no parking
signs.
In response to a question from Dr. Varner, Mr. Hensley noted that the street sweeping
schedule is published in the paper and that there are plans to have it also on the city's website.
In response to a question from Council Member Kirsits, Mr. Hensley noted that due to
the amount of rain that they have scaled down their list and that $70,000 may be left this year
which would be added to the 2005 priority list.
Council Member Puzzello asked for a copy of the streets which would not be
completed this year.
Mr. Hensley also noted that the de-icing program has been very effective with four (4)
quadrants and the downtown being the areas of concentration. The materials last 7-10 days
which makes it a pro-active program. The pot hole machine is 90-95% effective and costs $ .67
to $ 70 per pot hole compared with the former program which cost$ 2.10 per pot hole.
Mr. Gilot then reviewed a series of items why the city needs to keep its municipal
utilities fiscally sound. He noted that the utilities are are self-supporting in light of user fees and
availability of funds for capital from the state and federal governments.
Water Works $13,309,091.00 requested in 2005 0.58% increase
Water Works General $ 9,100,424.00 requested in 2005 1.50%increase
Water Works Sinking Fund $ 3,395,547.00 requested in 2005 0.46% increase
Water Repair/Insurance Fund$ 813,120.00 requested in 2005 -7.93%
John Stancati, Director of the Bureau of Water Works, summarized the operations at
Olive Street and the Edison Filtration Plant, and reviewed the power generators. He briefly
discussed the New Cleveland Road well field, and noted that if the south well field would be lost
that the city would go west at the cost of$50 million. He noted that the city is in the process of
acquiring the Indiana Auto Parts site in an attempt to have a wellhead protection buffer.
Personnel and Finance Committee Meeting of August 28,2004 Page 7
ConvnittEE cREhio't of t�IE
z,zAonnzt and 91iuinaE CominittEE of tiIE ASOLEtI BEnLl Common Council
In response to a question from Council Member Dieter, Mr. Stancati stated that the
acquisition in in the hands of the Legal Department. Mr. Gilot added that the Board of Public
Works is working on having any costs related to environmental concerns being shared. The
company is planning to relocate in the county.
Mr. Stancati noted that water works operations are listed on the FBI's list for security
purposes after 9/11. They have therefore been required to update security and conduct a
vulnerability assessment and emergency data plan. They have secured buildings and are looking
to secure the well fields with cameras and other security measures.
Mr. Stancati stated that the Administration is looking at a 15%rate increase which would
cover nine(9)months of operations, and that he would be coming to the Council soon. He noted
that the has been a shortfall due to lack of demand for water this year. In response to a question
from Council President White,Mr. Stancati stated the ordinance would be filed in the next thirty
(30) days.
Council Member Pfeifer inquired about what level of usage has to be maintained for the
budget to be balanced. Mr. Gilot stated that the revenue is 20%below the forecast.
Mr. Stancati also noted that there are many additional leaks a year than what were
anticipated,noting that 750 were projected and that it will be over 850.
Dr. Varner voiced concern that the city may be trying to meet a demand that is not there,
which would result in less usage bringing higher rates to the customers.
Mr. Gilot stated in the Twenty (20) Year Plan they are required to forecast for peak
demands. Models are run for that level of capacity and revenues must meet the average needed,
which is based on an ISO model. 60 million galls per day is the average. A 3-page handout
(copy attached) to the Committee setting forth a survey of cities and towns of 30,000 people or
more and the combined rates for sewer and water,separate water rates, and separate sewer rates.
Division of Environmental Services
Solid Waste $ 3,824,476.00 requested in 2005 +3.66%
Solid Waste Depreciation $ 662,362.00 requested in 2005 -12.95%
John J. Dillion, Director of the Division of Environmental Services, noted that he
appreciates how Gary Gilot challenges his bureau heads. The Division of Environmental
Services has four (4) basic operations: Bureau of Wastewater,Bureau of Solid Waste, Sewer
Repair, and Customer Service. Fully automated trucks and containers are being utilized under
the new expanded program, however there are problems with regard to the size of containers.
The City may have to limit the amount of trash that will be picked up or charge for anything
greater than a 96 gallon container. Referring to the solid waste rate projections, Mr. Dillon
Personnel and Finance Committee Meeting of August 28,2004 Page 8
C?ommittEE cREI2ott of t/Z£
�zzlorznzr and 9tnana£ &mmitt£E of th£ c5OLtth BEnd eOmmon e_OuI2ai
noted that the reserves will have to be used in 2005 and 2006 leaving no cash balance and that
the program would be in the red in 2007 and 2008.
In the Bureau of Wastewater,Mr. Dillon is asking for a 7%raise to be competitive for his
lab employees, since many positions are $4,000 less than comparable positions in Elkhart_ In
2002 they won 1st place in the Wastewater challenge, earned a 1st and 2nd in 2003, and placed
3rd this year. There is also a significant increase for legal services in order to anticipate a
remonstrance and consent decree actions. The next Advisory Committee meeting will be in
September and thereafter the Council will be updated with an written executive summary of the
meetings held to date. The 20-year plan moves up the separation of storm sewers,noting that the
projected cost for the storm water master plan being$60470 million. Council Member Puzzello
suggested that a tour of the facilities take place.
Mr. Dillon then briefly summarized the Organic Resources operations, noting that two
(2) positions have been reduced. He also summarized the Sewer Repair program noting that the
average cost is $2,000 per repair. He stated that he would have to come back to the Council to
"enhance the rates", since the sewer insurance fund for 2004 shows a deficit of$40,356 and a
deficit in 2005 of $42,432. Several options are being considered such as a rate increase,
increasing the deductible, and having the property owner pick up more of the cost of repairs
when heavy pavement cuts are needed.
Bureau of Sewers
Sewage Operation&Maintenance Fund $2,878,098 requested in 2005 +3.20%increase
Wastewater $8,198,645 requested in 2005 -1.93%
Sewage Works Sinking Fund $3,682,775 requested in 2005 +1.03%
Sewer Repair/Insurance Fund $ 715,432 requested in 2005 +10.34%
Gary Gilot and Sam Hensley noted that a new program of planting wildflowers in
retention basis is resulting in saving money, beautification and reduced work hours. The former
costs to maintain a retention basin was $4,900; where now in light of a partnership with Duck
Unlimited for seed the cost is $1,800 per retention basin. The City has fifty-six (56) retention
basins of which 34 are maintained by the city. In response to a question from Council Member
Puzzello,Mr. Gilot stated that the wheel tax proceeds would be addressed in February when the
capital budget is addressed.
Council Member Dieter thanked everyone for an excellent presentation and alot of great
written materials. He noted that they may be asked to come back to review the financials in
more details. He noted that the next meeting is set for Wednesday at 6 p.m.
Respectfully submitted,
Council Member Derek D. Dieter,Chairperson
Personnel and Finance Committee KCF:kmf Attachments
Personnel and Finance Committee Meeting of August 28,2004 Page 9