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HomeMy WebLinkAbout11-19-90 Personnel & Finance and Utilities (lnmmlittrt 14ort JOINT MEETINGS OF THE PERSONNEL & FINANCE COMMITTEE AND THE UTILITIES COMMITTEE can tilt Comm &until of tip of foontI rnh: The November 19, 1990 joint meeting of the Personnel & Finance Committee and the Utilities Committee was called to order by the Vice Chairperson of the Personnel & Finance Committee, Council Member John Voorde at 1: 05 p.m. in the Council Informal Meeting Room. Persons in attendance included Council Members Voorde, Niezgodski, Slavinskas, Luecke, and Coleman; Jack Dillon John Leszczynski, Don Porter, Bob Kruszynski, Katie Humphreys, John Leisenring, Carl Kopec, Ted Latkowski, and Kathleen Cekanski-Farrand. Council Member Voorde noted that the first item on the agenda was to review the Sewage Works General Budget and noted that it began on page 14 of the Preliminary Budget for Enterprise Funds. Anticipated revenue is projected at $12,059,582.00 with aniticipated expenses to be $12,320,263.00 resulting in a loss of $260, 681.00. Mr. Jack Dillon then reviewed the Sewage Works General Fund. He noted that the City is currently in the third year of a four year rate increase. The Operation Maintenance Reserve Fund will have $2,000,000. 00 within it pursuant to the law and the bond issue. A rate increase is not anticipated in 1991. The Ordinance in effect calls for a rate review in 1992. John Leszczynski noted that the revenues projected have been projected on the conservative side. Fuel oil and electric have been budgeted high in order to allow the City an option to change over to one or the other, depending on the cost. He believes that there will really not be a deficit since new accounts will be coming on board and in light of the over-budgeting in this area. It was also noted that two new positions are being added, one is temporary, being a Chief Operator. Four Chief Operators are needed, however five have been budgeted with the capacity to change a person to a salaried position for training purposes. In response to a question raised by Council Member Voorde, it was noted that there is a turnover beginning in the Chemist area. The City has lost at least one Chemist to Elkhart so far. 2 Council Member Slavinskas questioned whether the $900, 000. 00 CSO Study was incorporated within the expenses for the Waste Water General. It was noted that the majority of this amount was so incorporated. Council Member Niezgodski questioned several increases including line item 460 on page 15, and was advised that this would be in relation to the Storm Water CSO Project. It was also noted that line number 640 on page 17 was increased for temporary help to assist in temporary repairs. The Bureau of Waste Water Budget proposed for 1991 is projected at $1,366,886. 00 representing a 6.55% increase. The Committee then reviewed Sewage Works General Bureau of Santitation set forth on page 17 of the budget book. $2,460,584. 00 is projected, representing an increase of 7.57%. The Committee then reviewed Sewage Works General Bureau of Waste Water set forth on pages 18 and 19, showing a total budget of $6,449, 615. 00 representing a 27.87% increase. The Committee also reviewed Sewage Works General Bureau of Sanitation set forth on pages 20 and 21 for a total budget of the Sewage Works General of $8,931,197.00 representing a 24.21% increase. The Sewage Works Depreciation Fund for the Bureau of Waste Water was addressed on page 22 for a total budget of $1, 098, 000. 00 representing a 5.37% increase. The Sewage Works Depreciation Bureau of Sanitation Fund was addressed on page 23, for a total 1991 budget request of $2, 358,638. 00 representing a 7. 16% increase. The Sewage Works Sinking Fund for the Bureau of Waste Water found on page 24 sets forth a requested budget of $689,888.00 for bond payments. The South Bend/Clay Sewage Works General Waste Water set forth on page 25 has a requeseted budget of $385, 600. 00 representing a 2 . 66% increase. The South Bend/Clay Waste Water Sinking Budget is set forth on page 26 and is requesting the same amount for the current calendar year, that being $138, 698.00. The Committee then reviewed the Sewer Repair 1991 Budget beginning at page 27. Revenue is projected at $283,988. 00 with expenses projected at $326, 386.00 for a projected loss of $42,398. 00. This Fund basically represents the insurance program in effect for homeowners. The Sewer Repair Fund for the Bureau of Sanitation set forth on pages 28 and 29 shows a total budget of $77, 341. 00 representing a 1.82% increase. 3 Mr. Leszczynski noted that the City is getting second and third opinions from contractors in an attempt to regulate overall costs. Council Member Slavinskas questioned whether the fifty-cent per month charge is adequate. It was explained that the City currently has a $500.00 deductible and requires a $100. 00 deposit up front with the remainder being billed on a regular basis. The City currently has $60, 000.00 outstanding in delinquent loans. Council Member Coleman questioned how the overall program worked, and was advised that Maurice Williams coordinates the program and it was determined how blockages or breakages are assessed. Council Member Slavinskas questioned whether the charging process could be changed so that the City is not left with delinquent loans. Such a change would incorporate the City changing it's billing system so that only the $500. 00 would be billed to the City, with the remainder being billed directly to the customer. Council Member Slavinskas also questioned whether the City could make in-roads in the anticipated expensed of excavation of approximately $250, 00. 00. Bob Kruszynski noted that it would be difficult with one crew, since often there are multiple problems happening at one time. Mr. Dillon noted that most homeowners don't realize that sewer lines should be cleaned every two to three years. The Committee then reviewed the Solid Waste 1991 Budget beginning at page 1. Revenue is projected at $1,8700, 379.00 with expenses projected at $2,355,124.00 resulting in a deficit of $547,745.00. Mr. Dillon noted however, that several items had arisen since the Budget was prepared. He then passed out a handout revising the figures set forth in the Budget book. The first document is a letter dated November 12, 1990 from Prairie View Landfill explaining that effective January 1, 1991 there will be a seventy-five cent per yard increase at Prairie View and a fifty cent per ton increase on all solid waste. He also noted that there may be a County tax imposed if a District is formed. It was noted that the City has determined to cut back on capital expenditures. Currently, the customer list for the City is 25,185 households. Revenue on the second page of the handout showing revenue projected at $1,925,700.00 and expenses at projected at $2, 131, 648. 00 representing a loss of $205,948. 00 is projected on 26, 000 customers. It was noted that currently the City is $4.00 per month cheaper than Superior Waste for residential pickup. It was noted that the City does not anticipate a rate increase in 1991. 4 Council Member Coleman questioned the percentage which the City has of residential solid waste pickup. Mr. Leszczynski noted that the City has approximately 2/3 of all households with 39,000 households being the total amount. It was also noted that in June of 1990 the Yard Waste Pickup Program began and saved approximately $30,000.00 in landfill and related costs. This is reflected in the solid waste yardage graph on the handout. It was noted that with approximately 2,000 new customers, that in the last five months there has been less trash taken to the landfill. It was also noted that the City should realize revenue from the composting which it began with the Yard Waste Pickup Program. Mr. Lesczyznski gave credit to Mr. Kruszynski and his staff for the progress being made in this area. Council Member Luecke questioned whether there would be additional costs of personnel and whether this was factored into the overall program. Mr. Dillon noted that there is a cost for temporary help, and Mr. Kruszynski noted that there have been round adjustments made. Council Member Niezgodski noted that the problem in this area is just the pure volume of yard waste. At his home alone, he had over 67 bags of leaves and yard waste. Council Member Slavinskas questioned whether in fact the City should go ahead with the rate increase, in light of the short Fall projected. He noted that with a rate increase of approximately of seventy-five cents per month, that it would generate enough revenue to put the entire operation into the black. Mr. Dillon noted that he continues to fine-tune the overall program. He believed that it would be premature to have a rate increase take effect, in light of the fact that the City is uncertain as to whether the County will be establishing a District. He also noted that there are monies earmarked to update the eight year old study on trash removal. The overall study should take approximately six months. The contract will be signed within the next thirty days with the study to begin in 1991. Council Member Coleman noted that curb-side as opposed to alley pickup should again be discussed by the City in light of the tremendous wear-and-tear to the alleys. It was also noted that fifty-five gallon drums and the injuries resulting in workman comp claims should also be reviewed. Council Member Voorde noted that at least three studies have been conducted in this area too, by the Urban Observatory and the last one by Ten-Ech. He noted that although he was 5 critical of the last study, that he believes that a new study should be done to specifically address the recycling needs. Council Member Slavinskas stressed the need to review the concept of uniform containers. The Committee then reviewed the Solid Waste Fund Bureau of Solid Waste Budget at pages 2 and 3 for a total of $2,274,423.00. It was noted that line item 398 entitled "Landfills" should be reduced to the sum of $503,284. 00. Council Member Slavinskas questioned why the trash trucks have such noisy brakes, and was advised by Mr. Kruszynski that they are changed two to three times per year and unfortunately they have not been able to address the source of that problem. The Committee then reviewed the Solid Waste Depreciation Fund set forth on page 4 for a budget request of $80,701. 00 representing a 44.61% decrease. This is for a lease purchase on the compactors. It was noted that no packer trucks would be bought next year. It was also noted that the City picks up one day ahead of Superior Waste. Council Member Luecke questioned the recycling efforts in conjunction with the private entities. It was noted that the City picks up the cost of the hauling charges, with Goodwill providing the personnel at the various drop-off sites. The overall proceeds are then given to Goodwill. Mr. Dillon noted that the City is examining all alternatives in this area. He also noted that the City of Cleveland has a very successful recycling program, which comingles the various types of recyclable articles in blue bags. The Committee then reviewed the Parking Garage Budgets beginning at page 30. Mr. Ted Latkowski was present for questions. Mr. Latkowski noted that two full-time and one part-time employees have been deleted from the budget for 1991. Mr. Terry Coleman then reviewed the Budget Summary. He noted that the parking fees of $370, 000.00 represent the Jefferson and Main Street Parking Garages with an 80% to 90% occupancy rate. The Parking Funds projected at $100, 000. 00 would represent approximately 19, 000 tickets and 8, 000 additional tickets being issued by the Police Department itself. It also projected an 80% collection rate in this area. The operating transfers of $125, 000. 00 were from the new parking garage, for a total revenue projection of $595,000. 00. 6 The total expenses projected are $622,572 .00 resulting in a net operating loss of $27,572. 00. Council Member Slavinskas voiced concern that when the rate increase was proposed for parkers, that $160, 000.00 was used as the deficit amount with the rate increase reducing this amount to $105,000. 00. Mr. Coleman then explained the overall Parking Garage Project Budget of $622,572 . 00 representing a 6.85% decrease. Council Member Niezgodski noted that Mr. Latkowski has done a terrific job in this area. Council Member Slavinskas then raised the question under Miscellaneous Business with regard to Council Member Voorde's plans for the future. He noted that he would prefer to work with a Council Member elected by the people, as opposed to a Council Member who would be selected by the Precinct Committeemen. However, he noted that he was concerned with regard to an article he read in the South Bend Tribune that the City may have to incur the cost to have this issue resolved. Council Member Voorde then called upon the Council Attorney to update the Committee. She noted that she had been in contact with Council Member Voorde, Council President Zakrzewski, Dick Nussbaum, City Attorney, who was in turn in contact with the Mayor on this overall issue. She stressed that all individuals would like to have the question resolved as soon as possible as to whether Council Member Voorde can go forward with his intent to hold both his Council position with the City and also take over as Portage Township Assessor beginning January 1, 1991. She noted that at this time there have been no monies earmarked for costs which may be incurred, and that the City has not determined as to whether the petitioning process through the Court would be pursued. She noted that a meeting would be forthcoming with the Mayor, Council Member Voorde, and the City Attorney, to discuss this issue. Katie Humphries also noted that to date no monies have been expended in this area. Council Member Coleman noted that there should be a sense of history involved with the City. He therefore recommended that the City Council begin having photographs taken of each Council Member. Council Member Coleman also noted that if the Solid Waste District is established, that there should be ongoing discussion with the City Council of who the appointment from the City of South Bend would be. There being no further business to come before the Personnel & Finance Committee and the Utilities Committee, the meeting was adjourned at 3:25 p.m. 7 Respectfully submitted, Council Member Ann Puzzello, Chairperson Personnel & Finance Committee Don Niezgodski, Chairperson Utilities Committee attachments