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HomeMy WebLinkAbout11-17-88 Personnel & Finance and Utilities Olatunititt, Road JOINT MEETING OF. THE PERSONNEL AND FINANCE AND UTILITIES COMMITTEES - ea tilt Comm &Lunt of lie ettg of*rattly IiiPnh: The November 17, 1988 joint meeting of the Personnel .and. Finance and Utilities Committees was reconvened by Utilities Chair Person Don Niezgodski at 4:10 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, Steve White, Jack Dillon, Bob Kruszynski, Katie Humphreys, and Kathleen Cekanski-Farrand. Council Member Niezgodski noted that the purpose of the meeting was to continue to review the enterprise proposed budgets for 1989 . Mr. Jack Dillon was then asked to make the. formal presentation. Sewage Works General - Bureau of Waste Water - pages 12 - 14 $4,715, 135 - 6.8% increase. Mr. Dillon noted that in the 110 accounts the "Project Engineer" would computerize the Bureau and would be moved to this position by January 1, 1989. The "Suprintendant III" would be the liason between Tenec, the plant, and the construction crews. He noted that the 89 figures are correct and the 88 figures are in error. In response to a question raised by Council Member • Slavinskas it was noted that line item 147 entitled "Group Insurance" in the amount of $135,975 representing a 72 .4% increase was an actual calculated amount. In response to a question raised by Council Member Niezgodski it was noted that line item 363 "Equipment Repair" in the amount of $110, 000 represented a 76. 6% increase. This amount would be used to totally bebuild one diesel pump engine and blower at $45, 000 in the compressor room. It is anticipated that the project would take between 6 to 8 months. In response to a question raised by Council Member Soderberg it was noted that the plant uses all of its methane generated and that it is used to run the diesel blowers. One diesel blower runs at a time and it is designed as a redundant system. In response to a question raised by Council Member Voorde it was noted that the design prepared by Tenec and selected by the City was selected because it was the most cost effective method. This was further justified when Value Engineering reviewed the recommendation. Joint Meeting of the Personnel and Finance and Utilities Committees 11-17-88 Page 2 A response to a question raised by Council Member Slavinskas it was noted that line item 342 "Insurance" in the amount of $195,254 represents the liability payment to the self- insurance fund of the City. Sewage Works Depreciation - page 15 - Bureau of Water Works - $704 , 000 - 6. 6% increase. It was noted that line item 399 entitled "Other Contractuals" in the amount of $467, 000 represents payments to Tenec. It was also noted that line item 416 "Building Structures and Improvements" in the amount of $467, 000 represents various roof repairs, fencing improvements electrical repairs and external repairs to the administration building. It was also noted that quality controls utilized standarized test procedures with 12 sites in South Bend, 4 sites in Mishawaka and 7 to 9 sites in Elkhart. In a response to a question raised by Council Member Slavinskas it was noted that line item 399 in the amount of $911, 000 represents payments to date to Tenec for design materials. This does not include the administrative fees. Mr. Leszczynski noted that most of this would be reimbursed from State, Federal and bond issue revenues. It was further noted that since 1983 revenues have not kept up with expenditures. Mr. Leszczynski noted that at the last rate increase a 17% increase was recommended but the Council passed only a 9% increase. He noted that the need for systematic review and with the establishment of the commulative sewer fund the City administration and City Council is working together to review every four years a reasonable rate. It was noted that a cushion is built into the rate increase for the early years which will sustain it throughout a four year period. Mr. Leszczynski also noted that Tenec has been hired in the City of Hammond where all of the plant personnel have been fired and a consent decree is involved. Sewage Works Sinking Bureau of Waste Water - page 16 - $645,443 - .3% increase. It was noted that the bond issued for 1971 would be paid off in October of 1990. Council Member Luecke questioned how long the improvements would last. Mr. Leszczynski noted that since ceramic rather than plastic issues are being used that it should last 20 years or longer. He also noted that the City is "marginally in compliance" and that with the new improvements that better results should take place. South Bend/Clay Sewage Works General - South Bend/Clay Waste Water - page 17 - $111, 000 - 21.4% increase. Mr. Dillon noted that many of the comments made by Mr. Agostino of yesterday would be similar to those on this account for today. It was noted that in line item 354 entitled "Water" Joint Meeting of the Personnel and Finance and Utilities Committees 11-17-88 Page 3 the amount should be $165, 000 instead of the $70, 000 shown. Mr. Leszczynski or Katie Humphreys would provide further information with regard to this account for the Common Council. It was noted that line item 399 entitled "Other Contractuals" represented a management fee based on usage. South Bend/Clay Waste Water Sinking - South Bend/Clay Waste Water - page 18 - $138, 698 representing a 0% increase. It was noted that the bonds would be paid off in the year 2001 and then the City could consolidate the books. Sewage Works General - Bureau of Sanitation - pages 19 - 21 - $1, 668,973 - 3 . 6% decrease. This account represents sewers. Council Member Niezgodski questioned the salt line item. It was noted that since sand and salt are used and with salt $20. 00 per ton and sand costing $12 . 95 per ton that the State Board of Tax Commissioners agreed to the compromise position proposed by the City. Katie Humphreys noted, however, that the State Tax Commissioners made significant cuts to the Street Department, however, and that the 89 budget would be more closely reviewed. The Committees then reviewed Sewage Works Depreciation Bureau of Sanitation on page 22 requesting $369, 000 representing an 88% decrease: Sewers Repair Fund Bureau of Sanitation - page 23 - $74, 046 representing a .2% decrease. Council Member Slavinskas had a question with regard to line item 5222 Waste Water/Excacation in the amount of $145, 146. Mr. Steve White checked this and the committee members were advised that this was accumulated payments in the amounts of $1500 to $2500 to various contractors. Solid Waste Fund - page 9 - 10 Bureau of Solid Waste - $1,491, 441 - 15. 1% increase. It was noted that the 89 budget is consistent with the manning code. It was also noted that the City went to 9 routes in 1986. The other contractual account was then discussed in great detail and it was noted that actual expenses for maintenance as well as administrative costs were incorporated within this line item. Solid Waste Depreciation - Bureau of Solid Waste - page 11 - $145,701 - 2 .8% decrease. Mr. John Leszczynski noted that if the landfill costs continue to go up that a rate increase is inevitable. At this point Jim Wensits joined the joint committee meeting. It was noted that the line item 399 entitled "Other Contractuals" in the amount of $80,701 represents lease payments on the 8 garbage trucks. Joint Meeting of the Personnel and Finance and Utilities Committees 11-17-88 Page 4 Council Member Soderberg questioned whether it would be more cost effective to have curb side pick-up, however, John Leszczynski stated that he did not believe that this would be more cost effective. Mr. Bob Kruszynski noted that the highest expense represents tires and springs. Council Member Slavinskas stated that South Bend is unique since he speculated it would be cheaper if the City did all of the pick-up of trash throughout the City limits. Council Member Voorde noted that Mishawaka is stricktly on a contractual basis. Following further discussion Council Member Coleman made a motion seconded by Council Member Slavinskas to recess the meeting and reconvene it at 4 : 00 p.m. on November 18th. The meeting was recessed at 5:50 p.m. Respectfully submitted, Council Member Don Niezgodski, Chair Person Utilities Committee Council Member Ann Puzzello, Chair Person Personnal and Finance Committee DN:srk