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The August 29, 2000 meeting of the Personnel and Finance Committee was called to order
by its Chairperson,Council Member James Aranowski at 3:00 pm in the Council Informal Meeting
room.
Persons in attendance included Council Members Aranowski, Varner, Kelly, Pfeifer,
King, and Kirsits; Citizen Member Isabelle Gonzalez, Director of Public Works Gary, Gilot, City
Engineer Carl Littrell, Director of the Sewer and Street Departments Sam Hensley, Director of
Environmental Services John J. Dillon, Director of Water Works John Stancati, Director of
Equipment Services Matt Chlebowski, Michael Giulioni, Linda Curl,Ms. Stevens, City Controller
Cathy Roemer and Kathleen Cekanski-Farrand, Council Attorney.
Council Member Aranowski welcomed members of the Public Works Department to the
budget meetings for a review of their proposed 2001 budget.
PUBLIC WORKS OVERVIEW:
Mr. Gary Gilot, Director of Public Works,welcomed the opportunity to review his first
budget with the Council. He stated that his 400 employees in the department design, build, and
maintain the water, sewers and roads which make up the building blocks of the city. He plans to
administer by evolution rather than by revolution and concentrate on effectiveness and efficiency of
customer services. He noted that the curb and sidewalk program is popular with the residents and
he hopes to improve it. The budget will reflect creative new approaches which will include
outreach and partnering programs. He has initiated an environmental research program with the
University of Notre Dame and hopes to turn many current problems into opportunities such as
Fredrickson Park. Other outreach programs will include efforts in the.wastewater utility areas,
drinking water, combined sewer overflows. Over the next six (6) months he hopes to address
commitments to new programs focusing on competence.
Mr. Gilot noted that the overall budget for all divisions in Public Works totals $ 37.5
million. $ 31 million is generated from user fees. Book values have improved with ongoing
improvements made to the utility operations.
Mr. Gilot stressed that he would be proactive regarding the many challenges facing the
Public Works Department. He noted that Streets,MVH, Solid Waste and Sewer Insurance Repair
Funds all reflect UNBALANCED funds.
In the utility area, new debt services are included. EPA regulations require debt reserve
replacement funds. This area reflects increased operation and maintenance funding and
corresponding rate increases will be recommended where necessary. Mr. Gilot noted that South
Bend has the second lowest water and sewer rates. In the personnel area, new positions are
included and also upgraded positions and some positions have been eliminated.
Mr. Gilot has recommended salary adjustment for his five (5) Division heads. He also
recommends that the pay for an Engineer position with a Professional Engineering License (PE)be
$45,900. He hopes to strengthen in-house engineering. Engineers in training will be paid less.
There are a total of thirty (30) position of the 400 which have been adjusted above the 3.5%
guideline. Supplies are proposed at 1.5% and services at the 2.5% guidelines.
Mr. Gilot noted that the City closed on 7.8 acres for the proposed Public Works Service
Personnel and Finance Committee
August 29,2000
Page 2
Center with easements yesterday in the Brownfield revitalization area.
Council Member King inquired about the number of outside engineering firms used by the
city such as Lawson-Fisher;Cole Associates, Troyer, Hercezg and Associates, etc. and the amount
of monies spent for such services.
Mr. Gilot stated that when he headed the Elkhart City Engineering Department he had seven
(7) professional licensed engineers on staff. He hopes to have at least four (4) professional
licensed engineers on staff by the end of the next budget year. Engineering firms and consultants
provide multi-disciplinary needs which should be balance with the City's ability to attract and retain
quality professional licensed engineers to work in-house.
Council Member Aranowski requested that Mr. Gilot update the Council
next Spring before he submits his preliminary 2002 Public Works budget to the.
Administration since a great deal of planning in this area will be necessary.
Council President Pfeifer inquired that in the process of preparing the Public Works
budget,where did Mr. Gilot believe South Bend should be and what will it need to get us to a state
of the art status in this area.
Mr. Gilot noted that extra efforts need to be made in the drinking water area, and that the
sewer system is the"300 pound gorilla". Basement flooding problems, combined sewer problems
and the development of a Master Plan for Storm Water Drainage are all priorities. Mr. Gilot
stated that worries on the horizon include what the State Legislature will do on
local road and street funds (LRS) requested the help of the Council in addressing
this topic.
In response to a question raised by Council Member King, Mr. Gilot noted that the GIS
project is a multi jurisdictional one including South Bend, Mishawaka and St. Joseph County.
There have been contract problems and time has been lost, but progress is slowly being made.
Mr. Gilot agreed to keep the Council apprised on the GIS project. Council
Member Kelly stated that if the Council could be helpful in the GIS area that Mr.
Gilot should so advise. Mr. Gilot noted that Elkhart had GIS capability, and that the base
map should be ready in a few months but a firm schedule has not been provided In response to a
question from Council President Pfeifer, Mr. Gilot noted that many technical issues and factual
issues are involved in addition to the multi jurisdictional concerns.
Mr. Gilot noted that the Central Garage operations stack up well overall.
In response to a question raised by Dr. Varner, Mr. Gilot noted that since EPA is the
funding source for various construction grant monies that it therefore has the ability to regulate set
asides at current replacement costs. Mr. Gilot then turned the presentation over to his Division
heads.
ENGINEERINQ 1V SIONLENERAJJUND, # 101-0602)
2000 Total Expense Projection: $6,406,125 2001 Total Expense Projection: $6,474,115
$129,555 reflecting a 2.0 % increase excluding capital
Personnel and Finance Committee
August 29,2000
Page 3
Carl Littrell then reviewed the "Summary of Major Changes" and the footnotes listed on
that page. He noted that the overall budget is approximately $ 6.5 million. It includes the rent for
the County-City Building being reduced due to no elevator refurbishing proposed for 2001 thus
this line item being reduced from $ 420,000 to $ 320,000. Job titles have been changed to better
reflect the positions and be more descriptive. He noted that the title"engineer"should only be used
for engineers in training or for professionally licensed engineers. Engineers in training are
proposed at $37,500 and Engineer positions are proposed at$ 45,900 to reflect the education and
experience needed and required by the City. The GIS Manager has been upgraded so that the
Senior GIS position will be at$ 33,639. He noted that Joe Doran will be retiring at the end of the
year.
Mr. Littrell stated that new plastic pavement markings will be used which should have a life
of 6-7 years rather than the solvent based water-based paints. New equipment will be needed for
the new plastic markings. He also noted the LED Traffic Signals will be tested for energy savings;
and that gasoline costs are proposed at$. 1.50 per gallon. Telephone costs also reflect increases.
Council President Pfeifer noted that in older neighborhoods traffic calming and civility are
being tested as more small businesses are locating in these older neighborhoods. For example,
day care centers locate in the middle of a block and traffic concerns are then brought to her
attention. She also noted ongoing problems on Taylor Street with apartments having limited
parking and the Employment Office. It was suggested that the City be more pro-active
in addressing these parking concerns with better coordination between
Engineering, the District Council Member, the Building Department and. Area
Plan. Mr. Littrell stated that perhaps at the building permit stage a traffic
investigation could be conducted. He noted that he would follow-up on this
topic.
Council Member Aranowski noted that the petition process for residential parking took approximately 30-40 days through the Board of Public Works in the residential
area near Memorial Hospital.
Council Member King noted that the Good Neighbors/Good Neighborhoods program
received 1,200 to 1,300 applications for service; and that he has been advised that approximately
250 to 300 could be addressed each year. Mr. Littrell noted that there is a five-year program and
that it reflects 60-70% attrition. A lottery has been used and Mr. Littrell believes that a sufficient
amount of money has been budgeted.
MSF Bu,- i i. N z G N R. # 101-0606
2000 Total Expense Projection: $ 567,869 2001 Total Expense Projection: $ 569,030
$10357 reflecting a 1.9 %increase excluding capital
Sam Hensley introduced Ms. Stevens the Office Manager. He then reviewed the
"Summary of Major Changes" sheet. He noted that the MSF Building was constructed in 1965
and is overused and is being held together thanks to a good Building Engineer. He noted that they
have had a problem with a generator and are currently using portable generators.
Personnel and Finance Committee
August 29,2000
Page 4
Mr. Hensley noted that space has been taken away from the Police and Fire Departments
for years. For example janitorial closets have been turned into closets and the police locker room
was taken away under Chief Gunn. Core samples from the Street Department are being taken to
police rooms for analysis currently.
Citizen Member Isabelle Gonzalez inquired about the lead exposure policies when
unloading guns and bullet testing. Mr. Hensley noted that the problem has not been resolved
however they are monitoring the situation. Ms. Gonzalez requested that updates on the
lead exposure policies be sent to the Health and Public Safety Committee.
In response to a series of questions from Council Member Kirsits, Mr. Hensley noted that
fire and police equipment including boats are being stored at the MSF Building during the winter
months and some is being stored at the Ireland Road Fire Station. He noted that the Police Bomb
Squad Truck must be stored in a building not less than 45 degrees in light of the robotics housed
on it. Mr. Dillon noted that boats are also stored at Organic Resources. It was noted that Project
Releaf Blowers which are stored outside have shortened life spans.
In light of the various storage and space concerns, it was recommended that the
Council receive regular updates on the overall master plan for in-house and
outside storage of City-owned and City-leased equipment; regular updates and
discussion of the proposed Public Works Service Center; and regular updates and
discussion of the proposed relocation and expansion of the Fire, Police and
Communications Administration Central Offices, as well as the proposed Fire
Department Training facilities.
•: •t V" .LC . H -.wa. -S Dv ON FUND 0
2000 Total Revenue Projection: $3,187,184 2001 Total Revenue Projection: $3,187.814
$148,950 reflecting a 4.9 % increase
2000 Total Expense Projection: $3,323,133 2001 Total Expense Projection: $3,571.479
$383.665 projected shortfall
Mr. Hensley reviewed the "Summary of Major Changes" sheet and the various footnotes
highlighting areas of concern. He noted that the budget reflects an increase of $ 60,000 in
insurance. 2000 is the first year of having $ 1 millon budgeted for streets. 250 blocks will be
paved this year. A rotomill at the cost of$ 267,000 which will grind down 2 " curb to curb is
proposed. $ 60,000 is also proposed in this area for private contractors.
Council Member King inquired into when the rotomill equipment will pay for itself. Mr.
Hensley speculated that it would take five (5) years. Mr. Hensley also noted that it could be used
for waterworks and sewer projects, and that it should have a life of 10-12 years. Mr. Gilot noted
that better drainage may result by grinding down curb to curb.
Mr. Hensley visited Grand Rapids and as a result has recommended that an anti-icing liquid
agent be used prior to a storm during the winter time. Mr. Gilot noted that this is an example of
being pro-active and also addresses ongoing concerns resulting from using sand and slag which
Personnel and Finance Committee
August 29, 2000
Page S
are messy and cause problems for the Wastewater Treatment Plant. It should also be better for the
environment and should be skid resistant when applied properly. Mr. Gilot stated that this pro-
active approach will be handled within the budget and no new dollars are being requested. It will
be tested on major thoroughfares. He added in response to a question from Council President
Pfeifer that there should not be any environmental concerns with regard to the new liquid if the
dosage is applied correctly.
Council President Pfeifer inquired whether our alleys are being torn up by our own City-
owned and City-lease trucks because of their weight and size. Mr. Hensley noted that they do
contribute to problems in our alleys. He also noted that in light of the excessive amount of rain this
year that fewer alleys have been addressed. 294 alleys were addressed in 1999. Council
President Pfeifer requested long and short range proposals on the condition of
our alleys as well as trash removal services provided by the City. She inquired
about truck sizes and locations of trash pick-ups as well as whether mechanical
arms should be used as an alternative in specific areas of the City. Mr. Gilot
stated that he would be in favor of curbside pickup, however several factors such
as convenience and overall effectiveness of the service and the cost of the City
need to be studied and discussed. Mr. Hensley also noted that erosion in the alleys is also a
problem.
Mr. Hensley noted that many of the street sweepers are ten (10) years old. New truck
monitored sweepers are being considered which cost between $ 125,000 to$ 130,000 and six (6)
are being considered.
Council Member King inquired about the street management system and outsourcing in
general. Mr. Hensley noted that the street management system is close to being done and that
approximately 200 segments are left with 2000 being completed. He has requested that history per
segment of street as well as pictures be included.
Citizen Member Isabelle Gonzalez inquired as to when Mr. Hensley identifies his overall
priorities for the next budget year. Mr. Hensley stated that goals are identified in March and April
and proposed to the Administration. Ms. Gonzalez suggested that input from the Council at that
time for goal setting may be beneficial.
PROJECT RELEAF (FUND #655)
2000 Total Revenue Projection: $ 151,373 2001 Total Revenue Projection: $ 154.440
2000 Total Expense Projection: $94,209 2001. Total Expense Projection: $ 100.727
Mr. Hensley noted that the major change is in salaries. Hourly rates were$6.00 to$6.50
and have been proposed to be $7.00 to$7.20 for forty(40) projected part-time workers. In 1999
the leaves fell early and they were behind in the beginning. They are hoping to release workers
more timely this year. Mr. Hensley added that the monthly fee has been changed from $ .18 to $
.33. Mr. Hensley noted that 12 leafvacs were purchased in 1989 and that the City has 4 1990
models. Normally they have a five-year life. They are currently being housed outside which
Personnel and Finance Committee
August 29,2000
Page 6
affects their overall life and should be covered in a non-heated building. A leaf vac costs
approximately$29,000 each.
WATER WoRKSJ UNDS # 620, 622, 625 & 626))
2000 Total Revenue Projection: $10,754,742 2001 Total Revenue Projection: $11,130,066
$111,493 reflecting 1.0 %increase
Operations Fund(#620)
2000 Total Expense Projection: $7,051,802 2001 Total Expense Projection: $7,518,165
$ 546,529 projected overage reflecting 7.8%
Water Works Sinking Fund(#625)
2000 Total Debt Service: $ 2,718,219 2001 Total Expense Projection: $2,773,651
$55,432 projected overage reflecting 2%
Water Works Capital Fund(#622)
2000 Total Capital Service: $ 1,947,558 2001 Total Expense Projection: N/A
To be discussed in February 2001
Total Expenditures for Operating, Debt&Capital
2000 Total Projections: $11,717,579 $838,250 overage projected
Mr. John Stancati made the presentation. He stated that the budget reflects very limited
changes. One (1).janitor is being added and changes related to improvements are reflected. The
department is receiving few red water complaints. Improvements have been made at the Olive
Street Station. $93,000 is needed in reserves for the state revolving loan fund. The sinking fund
reflects the 1993 bond issue which was a 15 year bond, and the 1997 bond issue which is also a
15 year bond.
WATER EPAIR/INSURANC UNQ #644)
2000 Total Revenue Projection: $607,479 2001 Total Revenue Projection: $538,200
2000 Total Expense Projection: $ 647,644 2001 Total Expense Projection: $536,929
$1,271 projected overage
Mr. Stancati stated that this fund is in trouble and needed an interfund transfer.
Dr. flamer requested an update on the 31 South extensions. Mr. Dillon stated that the pipe
was delivered and that work should begin on August 30, 2000. The City is obligated to provide
water service immediately and has four (4) years to provide sewer service. The pipes will be in
different areas since they must be at least ten feet(10') apart by state regulations. Mr. Gilot stated
Personnel and Finance Committee
August 29,2000
Page 7
that there would be water to the area by the end of the year. The City will stay within the utility
right of easement ways south of Kern.
SOLID WASTE & t51t)
2000 Total Revenue Projection: $3,977,454 2001 Total Revenue Projection: $3,892,129
$41,362 projected overage for 1.1 %
Solid Waste Operating Fund(#610)
2000 Total Expense Projection: $3,958,417 2001 Total Expense Projection: $3,863,468
$ 78,603 projected overage for 2.1'%
Solid Waste Depreciation Fund(611)
2000 Total Expense Projection: $4,119,885 2001 Total Expense Projection: $4,039394
$ 37,178 projected overage for 0.9% •
Mr. Dillon reviewed the "Summary of Major Changes" sheet which he stated reflects the
"worse case scenario. He noted that he is having difficulty keeping personnel. SE Berrien County
will begin charging tipping fees by the ton instead of by the yard and the result should be a savings
to the City.
Mr. Dillon noted that there are six(6) new trucks now in service which reflect 25% of the
total fleet. He noted that there will not be a lease payment in 2000 under the depreciation fund..,He
believes that the Division should end the year even but in 2001 will end in the red. There are
approximately 35,000 customers.
Mr. Dillon added that 10% of the expenses go to Code Enforcement Clean Up crew
expenses for clean-up crews, zoo pickups, tipping fees, park pickups, Christmas in April, Gus
Maker, Neighborhood Clean-Ups and the Ethnic Festival. This result in a cost of $ 1.00 per
customer per month. $400,000 funds eight(8) Union Code employees and one(1)foreman. Mr.
Dillon stated bottom line he will need to cut into his reserves.
Mr. Dillon noted that he has been reviewing the state agency which oversees the "Pay As
You Throw"programs utilizing containers and stickers which should increase recycling rates. Mr.
Gilot stated that pro-active choices which are cost effective must be considered. Under HB 251
communities are to reduce trash by 51% by 2001.
Council Member Kirsits inquired about the long term and short term goals of staying in the
business or of opting out of it. Mr. Dillon stated that"flippers"can be used on the trucks which
may result in less injuries. Council Member Kirsits noted that 55 gallon drums are still being used
in the Parks.
Council Member Varner requested an accounting with all other services
provided for other departments and programs being eliminated what the overall
costs and revenues would be. Mr. Dillon stated he would provide that update.
Council Member King agreed that such an accounting should be provided since the Park
Department used to pick up their own trash in the early 1990's. Mr. Gilot stated that more efficient
ways should be pursued.
Personnel and Finance Committee
August 29,2000
Page 8
Cathy Roemer noted that recycling fees are reflected in this fund.
SEWER REPAIRaNSURANCE FUND (FUND )
2000 Total Revenue Projection: $486,029 2001 Total Revenue Projection: $434,720
$70,200 projected decrease for-13.9 %
2000 Total Expenditure Projection: $712,087 2001 Total Expenditure Projection: $ 520,220
$85,500 projected shortfall
Mr. Dillon noted that revenues are down as a result of the rate change decreasing the
monthly fee from $ .94 to $.79, as well as the cost for sewer repairs going up. There have been •
eleven (11) repairs over$ 5,000 this year and five (5) of the eleven (11) have been over 10,000
each. Such repairs have been scattered throughout the city.
Mr. Dillon agreed to provide quarterly updates to the Utilities Committee
on the Sewer Repair/Insurance Fund and projects addressed.
SEWAGE WORKSLEUND #641. 6 42. 643 & 649)
2000 Total Revenue Projection: $12,932,500 2001 Total Revenue Projection: $ 12,930,500
$ 2,000 Revenue Decrease
Sewage Operation Expenditures (Fund#641-0621):
2000 Total Expenditure Projection: $2,49I,886 2001 Total Expenditure Projection: $ 2,580,255
$ 78, 127 Increase=3.1 %
Wastewater Operation Expenditures(Fund#641-0630):
2000 Total Expenditure Projection: $ 6,132,994 2001 Total Expenditure Projection: 6,772,584
$ 634,787 Increase= 10.3 %
Sewage Works Sinking Fund (Fund#649):
2000 Total Debt Service: $ 917,447 2001 Total Debt Service: $ 2,670,194
Sewage Works Capital Fund(Fund#642):
2000 Total Capital Expenditures: $8,062,209 2001 Total Capital Expenditures: N/A
To Be Discussed In Feb'y 2001
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Personnel and Finance Committee
August 29,2000
Page 9
Sewage Works Total Expenditures (Operations,Debt & Capital)
2000 Total Projections: $ 17,604536
2000 ,
Revenue Over Total Expenditures: -$ 1,853,503 2001 Revenue Over Total Expenditures: N/A
in light of Capital Expenditures
Mr. Dillon noted that a new engineer position has been added to Fund#641 cutting two(2)
Union positions and adding one (1) salaried position. The Safety Officer serves also as the Chief
Chemist. He noted that he will be forced to go into reserves. 1989 was the last sewage works
increase.
Mr. Dillon noted that Fund#642 will address the US 31 sewer extensions.
In response to a question from Council Member King on storm water
management, it was suggested that Lawson-Fisher give a presentation to the
Council on storm water management and CSO issues. Mr. Dillon agreed to
contact the consultant.
Council Member Kirsits noted that there are ongoing problems in this area in single house
fire stations. He also noted that the sewer line under Sample Street was constructed in 1896.
CENTRAL SERVICES PUIPMENT SERV10ESIEIND #222-0605)
2000 Total Revenue Projection: $2,110,636 2001 Total Revenue Projection: $2,215,000
$28,000 projected decrease for-1.2 %
2000 Total Expenditure Projection: $2,081,737 2001 Total Expenditure Projection: $2,214,581
$31.969 projected shortfall= 1.4 %
Matt Chlebowski, Director of Central Services, made the presentation. He introduced
Linda Curl who is the new monitor for his department.
Mr. Chlebowski reviewed the"Summary of Major Changes"and the footnotes highlighting
the major points of concern. Three (3) positions have been eliminated and increases have been
requested for the three (3) superintendents. In 1985 there were fifty (50) mechanics and today
there are twenty-four(24) mechanics.
Mr. Gilot noted that he would be carefully monitoring the overtime budget and preventive.
maintenance issues in light of the personnel adjustments. He will use as a guideline a two (2)
week late threshold.
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Personnel and Finance Committee
August 29,2000
Page 10
CENTRAL SERVICES-CENTRAL STORES (FUND #222-0612)
2000 Total Revenue Projection: $ 111,261 2001 Total Revenue Projection: $115,544
$ 4,283 projected increase=3:8 %
2000 Total Expenditure Projection: $103,289 2001 Total Expenditure Projection:4 109,947
$ 2,658 projected increase=2.5 %
Mr. Chlebowski reviewed the"Summary of Major Changes"and the footnotes highlighting
the major points of concern. He noted that the City works with the South Bend Community
School Corporation and has one (1) special needs student who works four(4) hours per day, and
he also has one(1) special need student who works in the print shop.
Council Member King inquired whether all departments participate through the Central
Stores. Mr. Chlebowski stated that all departments do but at varying percentages.
CENTRAL SERVICES�2INT SHOP) UND #222-0613)
2000 Total Revenue Projection: $ 110,424 2001 Total Revenue . Projection: . $159,133
$23,499 projected increase= 17.3%
2000 Total Expenditure Projection: $137,004 2001 Total Expenditure Projection: $ 159,133
Mr. Chlebowski reviewed the"Summary of Major Changes"and the footnotes highlighting
the major points of concern. He noted that the overall operation will be re-evaluated over the next
10-11 months.
Citizen Member Isabelle Gonzalez inquired as to why more departments are not using the
print shop. Cathy Roemer answered that concerns over quality of printing and services which the
Print Shop cannot provide affect the output. Council Member King noted that he experienced
similar concerns in the private sector.
Council President Pfeifer suggested that the Mayor consider mandating that
certain items be done in the Print Shop for all departments and requested an
update on this suggestion.
CENT RAI.SERVICES-RADI® OP 1JND #222-0614)
2000 Total Revenue Projection: $ 222,692 2001 Total Revenue Projection: $230,189
$7,054 projected increase=3.2%
2000 Total Expenditure Projection: $222,325 2001 Total Expenditure Projection: $229,455
$ 6,320 projected increase=2.8
Personnel and Finance Committee
August 29, 2000
Page 11
Mr. Chlebowski reviewed the "Summary of Major Changes" page. He noted that the
proposed budget reflects the actual staffing levels.
In response to a question from Council Member Kirsits, Mr. Chlebowski noted that the
annual Vehicle Inventory Report is filed with the City Clerk's Office each July.
Citizen Member Isabelle Gonzalez inquired whether Mr. Chlebowski
prepares an annual preventive maintenance report. She requested that a copy of it
be filed for Council review.
Council Member Aranowski thanked all members of the Public Works operations for their
presentations.
There being no further business to come before the Committee, Council Member
Aranowski adjourned the meeting at 6:15 p.m.
Respectfully submitted,
Council Member James Aranowski, Chairperson
Personnel and Finance Committee
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