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HomeMy WebLinkAbout02.16.2009• • COUNCIL WORK SESSION February 16, 2009 3:30.p.m. Council Chambers Members present: Mayor Hurley, Hart, Steve Schmitt, Welper, Reggie Schmitt, Greenwood. Members absent: Cole, Getty. Moved by Reggie Schmitt, seconded by Steve Schmitt that the Agenda, as proposed, be approved. Ayes: Four. Absent: Cole, Getty, Greenwood. Motion carried. The purpose of the council work session was to review city departments' budget requests. Mayor Hurley noted that the budget hearing is scheduled for Monday, March 9, 2009, and that the hearing notice must be published not less than ten days before the hearing date. Mayor Hurley reported that the notice will be published at $18.68 per $1,000.00 of taxable property value, which is a 5 percent increase from the current property tax levy. Mayor Hurley commented that he is confident the levy will end up significantly lower. Mayor Hurley noted that so far at previous council work sessions $150,000.00 has been cut from the General Fund and $51,000.00 in employee benefits. The total amount that needs to be cut from General Fund departments is a little more than $800,000.00. Mayor Hurley reviewed the Facilities Maintenance Budget. Mayor Hurley recommended the following changes to the Facilities Maintenance Budget: Increase Line Item 3722 (Energy Rebates) in the amount of $11,553.00 Decrease Line Item 1114 (Time & Half Pay) in the amount of $938.00 Decrease Line Item 1117 (Double Time Pay) in the amount of $639.00 Decrease Line Item 1400 (Utility Service) in the amount of $3,000.00 Councilperson Reggie Schmitt noted that Line Item 1371 (Bldg Maintenance) is being increased from $53,000.00 this year to $120,000.00 next year. Lou Cutwright, Building Official/Maintenance Administrator, reported that about eight months ago there was a problem with the cleaning service and the city went with a new company. The contract will be rebid in March or April 2009. The current contractor said they would bid the cleaning service where they are now, which is around $90,000.00 per year. Mayor Hurley asked that an additional $20,000.00 be reduced from Line Item 1371 (Bldg Maintenance) bringing the total to $36,130.00. Mayor Hurley reported that Lou Cutwright, Building Official/Maintenance Administrator, will be retiring in January 2010. Mr. Cutwright has been the Maintenance Administrator for eight or nine years, and he has acquired a knowledge of city buildings, and it will be difficult to replace that knowledge. Mayor Hurley and Mr. Cutwright have discussed a succession plan where the city would hire a Building/Code Enforcement Official several months before Mr. Cutwright's retirement. The city would then hire Mr. Cutwright on contract for two hours per day for five days per week to oversee the city's buildings. The vision is that facilities maintenance would be turned over to a third party within two to three years. Mr. Cutwright stated that Code Enforcement/Building Official has been shared with Black Hawk County for 13 or 14 years. The new Code Enforcement/Building Official will be shared with LaPorte City, Raymond and Black Hawk County which would generate income for the city. Mayor Hurley asked what would happen to the facilities management agreement the city has with the county. Mr. Cutwright replied it would no longer be in effect as he would not be an employee of the city. Mr. Cutwright noted that he has talked with Black Hawk County to contract with them to oversee their building maintenance. Councilperson Hart stated he would like further discussion to try to get a better picture of what Black Hawk County is going to do about facilities maintenance. Council Work Session February 16, 2009 Page 2 Councilperson Steve Schmitt stated that with all things equal, he would prefer to hire one person. Councilperson Steve Schmitt stated that if the city is unable to hire one person than he would look at Mr. Cutwright's offer. Mayor Hurley stated that elected officials as good stewards for the taxpayers take care of their assets, but asked is it really a core business for city government. Mayor Hurley stated that Mr. Cutwright's plan does have a sunset where the city would move to fully contracted facilities maintenance services. Councilperson Welper stated that he cannot imagine anyone wanting to work two hours per day, five days per week for two or three years. Mr. Cutwright responded that those two hours per day would be spent exactly as he does right now. Some days he spends three or four hours on facilities maintenance and on other days he only spends an hour. Mr. Cutwright noted that over the course of time, the city will have contracts to fix big items such as air conditioners, heaters, boilers, etc. and who will manage those contracts, prepare the documents, etc. Contracting with him is a means of using the knowledge he has acquired over the years. Councilperson Reggie Schmitt stated the city would need to hire someone six months prior to Mr. Cutwright's retirement in order for the new person to be trained. Councilperson Reggie Schmitt stated he feels the city would be further ahead to outsource to a company that provides facilities maintenance services. Either transfer of the knowledge or contract with a company. Councilperson Hart asked if the city had looked at the cost savings versus the revenue from surrounding cities and Black Hawk County. Mayor Hurley responded that over the years, the city has received revenue from Black Hawk County and LaPorte City and Raymond, which amounts to about $8,000.00 to $10,000.00 per year. Mr. Cutwright receives some of the revenue and the city receives the rest. Mayor Hurley noted that a few years ago the city had a proposal from Johnson's Controls for a total maintenance program to include energy, environmental, prevention and repairs. Staff was confident it would save the city between $250,000.00 and $300,000.00 per year, but it was controversial and the council at that time decided not to contract out the services. Councilperson Greenwood now present at 4:10 p.m. Mr. Cutwright stated that a Code Enforcement/Building Official is one venue and facilities manager is another, and he feels finding an individual to do both is highly unlikely. Mr. Cutwright stated the city will either have to contract with him or hire a business to perform the facilities maintenance services. Paul Huting, Leisure Services Director, stated that there is building maintenance at the stadium, the Leisure Services offices, Young Arena and the pools. Mr. Huting commented that it may make sense to bring those services back to Leisure Services. Councilperson Steve Schmitt asked what is the reason for 27 percent increase in Line Item 1390 (Other Contractual Services). Mr. Cutwright responded that is work anticipated for the public market and expo building. Mayor Hurley noted that those expense would either fall under facilities maintenance or under Leisure Services. Moved by Hart, seconded by Welper to move the Facilities Maintenance budget, with Mayor Hurley's recommendation of total changes of $36,130.00, to the master budget. Ayes: Five. Absent: Cole, Getty. Motion carried. Mayor Hurley explained that the $400,000.00 gap does not include funding for social services for programs such as the Eastside Ministerial Alliance, KBBG and Yes+ Mayor's Youth Initiative Program. The Eastside Ministerial Alliance has submitted a request for $6,000.00 for the Rites of Passage Program. In previous years, the city has funded KBBG in the amount of $3,000.00 and the Yes + Program received $25,000.00. Mayor Hurley stated that there has been discussion to put $35,000.00 for these programs for the worst case scenario publication notice. Mayor Hurley noted that in this economic climate should city government fund these programs and if so at what degree. Councilperson Steve Schmitt asked what was funded for these • • Council Work Session February 16, 2009 Page 3 • programs in FYE09, and Mayor Hurley responded about $35,000.00. Councilperson Welper stated that every year council asks the question should the city being doing this. Councilperson Welper stated he thinks if we approve funding for these three programs we should give to all. Councilperson Welper stated he feels if there are extra dollars that is fine, but if not then we should wait. Councilperson Greenwood stated he feels the council should look at funding our core mission in the General Food, such as Police and Fire and see what the gap is. Councilperson Greenwood stated he feels it is premature to work this out right now. Michelle Weidner, Chief Financial Officer, explained that funding for these programs cannot be added later if they are not included in the publication notice because council cannot increase the published dollar amount. Ms. Weidner suggested council putting $30,000.00 to $35,000.00 in the published budget notice because they can always eliminate the programs at the March 9, 2009 budget hearing. Councilperson Reggie Schmitt suggested $40,000.00 be included as they are all valid requests, but the $8.10 levy comes first. If there is not enough money, these programs can be cut. Councilperson Hart stated he agrees with Councilperson Reggie Schmitt. It was moved by Greenwood, seconded by Reggie Schmitt to publish at $40,000.00 for health services with programs to be determined later. Ayes: Four. Nays: Steve Schmitt. Absent: Cole, Getty. Motion carried. Councilperson Steve Schmitt stated the only reason he voted no was because if $31,000.00 is the requested amount, he is trying to cut the budget not add to it. Councilperson Welper now absent at 4:20 p.m. Mayor Hurley reviewed the Leisure Services Budgets, which includes Parks, Downtown Maintenance, Golf, Sports and Young Arena. Mayor Hurley recommended the following changes to the Parks budget: Increase Line Item 3482 (Merchandise Sales) in the amount of $2,400.00 Reduce Line Item 1112 (Part Time) in the amount of $12,094.00, plus $1,693.00 benefits Add Line Item 1111-1131 for new electrical position in the amount of $68,510.00 Reduce Line Item 1390 (Other Contractual Services) in the amount of $40,000.00 Reduce Line Item 1533 (Fuel) in the amount of $5,000.00 Reduce Line Item 1400 (Utility) in the amount of $3,500.00 Reduce Line Item 1390 (Other Cont Services for Mowing) in the amount of $5,000.00 Reduce Line Item 1539 (Inst. Supplies) for flags in the amount of $1,000.00 Reduce Line Item 1569 (Veh. Replacement Parts) in the amount of $2,000.00 Reduce Line Item 1571 (Mach/Equipment Parts) in the amount of $1,500.00 Reduce Line Item 1537 (Hort./Landscape Supplies) in the amount of $6,000.00 Mayor Hurley noted that several departments asked for an electrician position so that they would not have to contract for those services. Mayor Hurley explained that he reduced contractual services by $40,000.00 if we hire an in-house electrician. Mayor Hurley recommended the following changes to the Downtown Maintenance Budget: Reduce Line Item 1112 (Part Time) in the amount of $950.00, plus $133.00 benefits Reduce Line Item 1390 (Other Cont. Sers) in the amount of $7,000.00 if hire electrician Increase Public Market Maintenance in the amount of $3,000.00 Reduce 1500 Line Items in the amount of $5,150.00 Mayor Hurley recommended the following changes to the Golf Budget: Reduce Line Item 1351 (Advertising) in the amount of $7,000.00 Reduce Line Item 1400 (Utility) in the amount of $1,000.00 Reduce Line Item 1504 (Credit Card Chrgs) in the amount of $1,000.00 Reduce Line Item 1537 (Hort/Landscape Supp) in the amount of $3,000.00 Mayor Hurley recommended the following changes to the Sports Budget: Reduce Line Item 1112 (Part Time) in the amount of $8,000.00, plus $612.00 benefits Increase Line Item 3831 (Reg. Fee) in the amount of $2,000.00 Council Work Session February 16, 2009 Page 4 Mayor Hurley recommended the following changes to the Young Arena Budget: Increase Revenue Line Items in the amount of $20,000.00 Councilperson Greenwood asked who will maintain the Expo grounds. Paul Huting, Leisure Services Director, responded Leisure Services will maintain the grounds and the utilities for the public market. Lou Cutwright, Building Official/Maintenance Administrator, noted that the building itself is in the Facilities Maintenance Budget. Councilperson Greenwood asked if there is an event will our groundskeeper clean up the area. Mr. Huting responded that in general the city will be responsible but will always appreciate volunteer help. Councilperson Greenwood asked if there has been any discussion about a facility downtown for equipment for the people who will work downtown. Mr. Huting responded they have discussed having a maintenance building downtown but not at this time. Mayor Hurley noted that about $3.5 million is budgeted for the 57 parks, and Leisure Services charges back to the Road Use Tax and Sanitation Budgets. Downtown Maintenance is about $230,000.00 General Fund supported, Golf Courses are about $133,000.000 General Fund supported, Sports & Youth about $300,000.00 General Fund supported and Young Arena should break even. Councilperson Steve Schmitt asked how the playground equipment update is coming. Mr. Huting replied that Leisure Services does a little every year, with probably about six parks still needing to be updated. The equipment update is funded with bond money and some grant programs. Mr. Huting noted that with that many parks, replacement of the equipment will be ongoing. It was moved by Hart, seconded by Steve Schmitt to move the Parks, Downtown Maintenance, Golf, Sports and Young Arena budgets, with Mayor Hurley's recommendations, to the master budget. Ayes: Four. Absent: Cole, Getty, Welper. Motion carried. Mayor Hurley reviewed the Library budgets. Mayor Hurley noted that the Library Director, Tech System Administrator, Youth Librarian and Coordinator are shared positions with the City of Cedar Falls. Mayor Hurley explained that there is a library levy of $.27 per $1,000.00 which was intended to increase staff and hours of operation. Mayor Hurley recommended the following changes to the Library Budget: Reduce Line Item 1112 (Part Time) in the amount of $2,000.00, with benefits of $153.00 Reduce Line Item 1128 (Retirement Pay) in the amount of $1,500.00 Reduce Line Item 1320 (Semi -Prof Services) in the amount of $1,300.00 Reduce Line Item 1400 (Utility) in the amount of $1,500.00 Reduce Line Item Series 1500 in the amount of $10,000.00 Reduce Line Item 1343 (Postage) in the amount of $2,000.00 Mayor Hurley recommended the following changes to the Library Tax Levy Budget: Reduce Line Item 1112 (Part Time) in the amount of $2,000.00 Reduce 1390 (Other Cont. Ser.) in the amount of $6,500.00 Sheryl Groskurth, Library Director, explained that the Coordinator position is covered with state grant money. Ms. Groskurth explained that the 1500 Line Item series is money from the state for accreditation and most of those funds go for materials. Ms. Groskurth stated that the accreditation includes staffing, hours opened, materials, etc. It was moved by Hart, seconded by Steve Schmitt to move the Library and Library Tax Levy Budgets, with Mayor Hurley's recommendation, to the master budget. Ayes: Four. Absent: Cole, Getty, Welper. Motion carried. • • Council Work Session February 16, 2009 Page 5 • • With no further business before the council, it was moved by Steve Schmitt, seconded by Hart that the meeting be adjourned at 5:07 p.m. Ayes: Four. Absent: Cole, Getty, Welper. Motion carried. Nancy Eckert City Clerk