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HomeMy WebLinkAbout11-16-88 Personnel & Finance and Utilities Ilantmttttpr I tpnrt • JOINT MEETING OF. THE PERSONNEL AND FINANCE AND UTILITIES COMMITTEES Fla tip gamma t ounctl at Or Qtitg of boutip Ranh: The November 16, 1988, joint meeting of the Personnel- .and . Finance and Utilities Committees was called to order by Council Member Don Niezgodski, Chair Person of the Utilities Committee, at 4: 05 p.m. in the Council informal meeting room. • Persons in attendance included Council Members Niezgodski, Puzzello, Slavinskas, Zakrzewski, Luecke, Voorde, Coleman and Soderberg; John Leisenring, John Leszczynski, Mr. Joseph Agostino, Steve White, Jack Dillon, Mayor Kernan, Katie Humphreys, and Kathleen Cekanski-Farrand. Council Member Niezgodski noted that copies of the master chart on. accounts and manning tables as well as the detailed accounts were provided for the committees to review. Mr. Joe Agostino then reviewed the Water Work's General Fund. Water Works General Funds (pages 1-4) requested budget $5,258,954 - 2 .5% • increase. Mr. Agostino noted that the department is more fully automated by the better use of . computers. He stated that the Pin Hook clear well (storage tank of clear water) would force some restructuring. This is' presently 98% completed. He also noted that they have resolved the positions and job duties with the assistance of • the Controller's Office and the Union. The budget now accurately represents the actual people in place within the department. It was also noted that there are 17 people that should be listed under "summer help" which would be paid the amount of $4.50 per hour. Upon a question being raised by Council Member Slavinskas, it was noted that line item 374 entitled "Equipment Rentals" would be for the purchase of baracades which are currently being rented. The purchase should result in a savings of $6, 000. 00 annually. In a response to a question raised by Council Member Niezgodski, it was noted that line item 399 entitled "Other Contractuals" reflects a reduction of 16%. This incorporates costs for various service studies, office cleaning, the $3600 per year salary for each of the board members, etc. Council Member Voorde requested that the policy regarding take home vehicles again be reviewed. Mr. Leisenring noted that there are no fewer take home cars but that each position is being reviewed as it becomes open. Katie Humphreys noted that there will be an overall City wide • Joint Meeting of the Personnel and Finance and Utilities Committees 11-16-88 Page 2 policy with regard to take home vehicles. It was also noted that 8 people drive pick-up trucks which are taken home. Most of these are used for construction and maintenance and distribution. It was also noted that job leaders and supervisors typically take home cars. In response to a question raised by Council Member Luecke the property tax question in line item 394 was to be further reviewed. It was also noted that line item 525 incorporates a transfer for administrative costs in the amount of $116,779. 00 to reimburse for personnel. Katie Humphreys noted that Crowe Chizek has been hired to study this area to determine an actual amount. Water Works Depreciation - page 5 $958,237 , 000 - 3 .8% increase. Mr. Agostino reviewed this account. Council Member Coleman noted that he personally inspected the clear wells and found it to be a "facinating process" . Council Member Puzzello had several questions with regard to motor equipment in line item 427 which represented a 34 .2% increase. It was noted that a front end loader costing $75, 000. 00 was one of the primary reasons for the increase. It was further noted that the current front end loader is over 16 years old. It was also noted that vehicles would be serviced by MSF instead of being serviced in their own garage. This should result in a net savings. Line item 399 will help pay for 2 new wells at Ireland and Ironwood. The site survey has begun for that project. Council Member Voorde questioned supplementing Mishawaka's pressure and water problems. Mayor Kernan noted that a plan to tie the two systems together is currently being studied with the mechanics for public safety, etc. being discussed. Such a project would be metered and the Mayor agreed to keep the Common Council advised of further developments. Questions were raised with regard to line item 436 "General Fund Water Mains" in the amount of $284,765. 00. It was noted that the cost of pipes, the replacement of hydrants, new valves, etc. are all represented within this account. This account does receive some reimbursement when there are actual hookups. Water Works Sinking Fund - page 6- $15, 621 - 0% increase. Mr. Agostino noted that this represents the payment of the River Commons principal and interest. 1989 is the last year for the River Commons payment. The original was $111, 000. South Bend/Clay Water General Operations - page 7 - $179 ,500 - 5. 1% increase. It was noted that this account was established when the City of South Bend began the purchase of the Clay operation. The City runs the overall operation with Clay reimbursing the City. An option to purchase takes Joint Meeting of the Personnel and Finance and Utilities Committees 11-16-88 Page 3 place in 1995. The year 2001 is when the Lease-Purchase Agreement expires. A question was raised with regard to "taxes to City" in line item 394. It was also questioned why in 1988 there were no monies budgeted in this account, while in 1989 $7, 000 was requested. John Leszcynski stated that he believes "there is no legitimate way for such a charge. " He also noted that the City does the billing for Clay and that State law requires a separate set of books. This area with regard to the charge and the projection of $7, 000 would be further checked by the City administration. Line item 263 entitled "Other Supplies II" in the amount of $4, 000 represented a 288.3% increase. Mr. Agostino noted that this represents the printing of bills and that currently they are using old stock. South Bend/Clay Water Sinking Fund - page 8 - $64 ,738 - 0% increase. Mr. Agostino noted that this represents the payment per the schedule projected to run through the year 2001. This payment is at a 10.4% interest rate. Mayor Kernan then reviewed Bill No. 103-88 which is the sewage use and rate ordinance. Mayor Kernan noted that the best case situation would have been that the City's local match over a 14 year period would be 4.9 million dollars. With the help of Jack Dillon and John Leszczynski the various documents needed for EPA review and State approval were properly filed by the City. The City's local match will now total 9.5 million dollars and will be paid over a 20 year period. It was also noted that part of the monies for next year would be on a loan basis as oppossed to a grant basis through the EPA. He noted that South Bend was 105 on the list and moved up to 76 and ended up as 1 of 16 cities within Indiana to be selected for grant monies. Mayor Kernan noted that the grant was the result of cooperation between Senators and Representatives, Mr. Leszczynski and his staff and other City administrators. In July the average user rate projected was calculated at $12 .70 and now the average user rate is projected to be $13 . 09. If the total project would have to be funded by the City in the amount of 22 1/2 million dollars instead of a 26% increase the City would be looking at a 48% increase. It was noted that on October 1, 1988 the new permit was issued and the City has 3 years to bring the plan into compliance. Joint Meeting of the Personnel and Finance and Utilities Committees 11-16-88 Page 4 Mayor Kernan stated the rate increase should last for 4 years. The improvements proposed have followed a four-step procedure: 1. Engineering done by Tenec. 2 . Value Engineering reviewing the Tenec proposal. 3 . Indiana Department of Environmental Management agreed to the proposal. 4. EPA review and recommendation. Mr. Jack Dillon and Mr. John Leszczynski gave further detail and numerous handouts in reviewing the proposed rate bill. (copies attached) . They also reviewed in great detail the "formula that what this means to me" . Mayor Kernan also noted that Evansville is faced with a 30 million dollar project and did not meet the State and Federal deadlines for grant proposals. Council Member Puzzello had several questions with regard to the Mayor's leaf burning ban and specifically questioned who could lift the ban. The Mayor noted that he is the only one who has that authority and would keep the Council in contact on a day by day basis. Council Member Puzzello believes that the report was confusing which was carried by the news media. It was also noted that many of the problems were caused by burning in the County. The Committees continued to meet in joint session and had several questions of Mr. Leszczynski and Mr. Dillon. Upon further review Council Member Slavinskas made a motion seconded by Council Member Puzzello that Bill No. 103-88 be recommended favorably to Council. The motion passed. At 6:35 p.m. the meeting was recessed to be reconvened at 4: 00 p.m. on November 17th. Respectfully submitted, Council Member Don Niezgodski, Chair Person Utilities Committee Council Member Ann Puzzello, Chair Person Personnel and Finance Committee DN:srk Attachments