LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on August 10, 2009 at 6:00 p.m. with Chairman McGlumphy presiding. Members present were Mr. Leary and Mr. Shevock. Mr. Salters and Dr. Jones were absent. Members of Council present were Mrs. Williams (arrived at 6:02 p.m.), Mr. McGiffin, and Mr. Hogan. Mayor Carey was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Leary moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.
Review and Recommendation - Filling of Critical Positions
During their meeting of February 23, 2009, members recommended approval of the Hiring Freeze for Fiscal Year 2008-2009, but to allow the hiring of critical positions through the review and approval of the Legislative, Finance, and Administration Committee and City Council. It was suggested that there be a “standing” agenda item to consider the filling of critical positions and, if there are no positions to consider, the item could be removed.
Mr. McGlumphy noted that there were no critical positions to be considered; therefore, no action was required of the committee.
Revenue/Cost Saving Ideas Submitted for Consideration (Items #11 - 20)
During their meeting of July 13, 2009, members reviewed a list (items #1-#10) of revenue/cost saving ideas developed by employees. Mr. McGlumphy reminded members that the 30 suggestions would be considered by members 10 at a time, (items #11- #20 at this meeting and items #21-#30 at the next). Items #11 - #20 were discussed as follows:
#11 - On-call personnel for the Water Department per week are now at three persons per week….needs to be changed to one person on call a week
Mrs. Terry Tieman, Senior City Administrator, explained that reducing the on-call personnel to one (1) employee per week could pose a potential safety hazard; however, it was felt that the number could be reduced to two (2) employees. Mr. McGlumphy requested that staff provide members with the estimated cost savings in reducing the on-call personnel to two (2) employees.
#12 - Limit late notices for Electric bills to one instead of sending duplicate copies (Currently sending multiple notices)
Mrs. Tieman advised members that currently only one “blue “ notice is sent to residents who are late submitting payment for their utility bill. She explained that she has been working with the Information Technology Department to determine if this notice could be included on an individuals bill through the new bill print program in HTE; however, she stated that technical problems have arisen and that once these issues are resolved, this proposed change would be brought forward for Council’s approval. Mrs. Tieman noted that this change would extend the due date by six (6) days and the cost savings would be approximately $12,000.
#13 - Keep flower budget to a minimum for the upcoming year
Mrs. Tieman advised members that the flower budget has been kept to a minimum due to the elimination of line item increases. In addition, the Department is considering eliminating some flower beds to save money; however, she noted that this would equate to a service cut.
#14 - Sell pulled bulbs instead of giving them away each year
Mrs. Tieman stated that the City would need to designate a location to sell the bulbs and that additional cash handling requirements would be placed on staff by the Finance Department if the Public Services Department were to handle the sale. In addition, she explained that by using the City’s Procurement Officer, the City would incur additional costs. Mrs. Tieman also noted that it was felt that residents may not be receptive to this change.
Mr. Hogan suggested that the bulbs be sold through a local service club as a fund-raiser. Mrs. Tieman felt this was a good idea and that it could be further evaluated.
#15 - Do away with duplicate trash pickups on same street (example: Trash pick-ups on Loockerman Street are done on Tuesday night, and then again on Wednesday morning.)
Due to the general uncleanliness, Mrs. Tieman explained that several years ago businesses located in the Downtown area requested duplicate trash pick-up service. She stated that the Tuesday nighttime collection reduces conflicts with traffic on Loockerman Street and; therefore, improves the safety of employees. Mrs. Tieman advised members that the City currently budgets four (4) hours of scheduled overtime per week to provide this service to businesses on and around Loockerman Street and that there would be a cost savings; however, it may create additional concerns in the downtown area and would be a reduction in the current level of service. She stated that staff is considering this suggestion.
In response to Mr. Hogan, Mrs. Ann Marie Townshend, Director of Planning and Community Development, stated that a number of properties on Loockerman Street are not accessible through the alleys.
Responding to Mr. Ruane, Mrs. Tieman stated that the Downtown area is the only area that receives scheduled duplicate trash pick up.
Mr. Kenneth Clendaniel, City of Dover employee, stated that duplicate trash pick-up also occurs with residents who have forgotten to place their trash out and that they typically contact the Public Services Department, who will have staff re-routed to pick-up the trash.
Mr. McGlumphy requested that staff discontinue picking up trash when residents have forgotten to place their trash out on their scheduled pick-up date. In addition, he suggested that the City consider implementing a fee for this service.
#16 - Do away with Trash Collection pick-ups outside the City Limits. Residents outside the city limits who do not pay city Taxes should not be having trash collection
Mrs. Tieman stated that the City has approximately 980 customers who receive trash pick-up outside the corporate limits of the City of Dover, and that the cost is $29.00 per month for the 90-gallon container service. She stated that the elimination of this service would reduce the total trash revenue by approximately $341,000 (980 x $29.00 x 12 months). Mrs. Tieman noted that the City does not have a service contract with the customers; therefore, the service could be eliminated with relatively short notice if City Council decides to discontinue.
In response to Mr. McGlumphy, Mrs. Tieman stated that the cost does not include the expense of the landfill fees; however, she stated there would still be a net loss.
Responding to Mr. Leary, Mrs. Tieman advised members that she did not believe additional crews have been added recently; however, she stated she would confirm with the Public Services Director, Mr. Scott Koenig, and provide members with a brief analysis.
Mr. McGlumphy requested that staff include the effects on the equipment in the analysis.
Responding to Mr. Hogan, Mrs. Tieman stated that the City is competing with local trash haulers; however, the City’s rates are cheaper and include bulk service.
#17 - Implement Volunteer Ambulance Service that is Non-Profit or start City run ambulance service that is not contracted out (long term goal)
Mrs. Tieman explained that the City would incur capital costs of two (2) ambulances and equipment if this recommendation is accepted. She advised members that the cost of an ambulance is approximately $125,000. In addition, the City would require at least an eight (8) person staff to rotate 24/7, which would be an additional cost of approximately $360,000 annually ($30,000 for entry staff salary, plus $15,000 for benefits). Mrs. Tieman noted that the cost does not include funds for operations, or for an additional staff person or contractor who would be required in the billing department to manage accounts. In addition, Mrs. Tieman advised members that this may be a conflict with the existing Ambulance Service contract and stated that, due to the costs associated with this service, it is not recommended by staff. Mrs. Tieman felt that this service would be better applied to those running a professional Fire Department, which would allow the income to supplement the costs of the Fire Department, and she is unsure how this could be done with a volunteer Fire Department. She stated that the City of Newark supplements their expenses.
It was Mrs. Williams feeling that, when the idea was initially proposed, this service would pay for itself with fees once it was started; however, she was not sure if start up costs were included. Mrs. Tieman stated that she would research this further and determine if a study had been conducted.
#18 - City residents currently pay only $5.85 for trash collection a month. Average rate for county pick up and private companies is around $22.75 a month. This could be a huge revenue increase even if it is only raised to $15.00 a month.
Mrs. Tieman stated that this suggestion should be evaluated in greater detail and placed with the Pay As You Throw (PAYT) evaluation that is scheduled to be completed by City staff.
Mr. Ruane expressed concerns with the costs associated with the amount of bulk trash residents are setting out for pick up and recommended that this be re-evaluated and brought forward to the Utility Committee for their review. Mrs. Ann Marie Townshend stated that residents may place bulk trash measured at an area of 4x4x8 before a fee is incurred.
#19 - City currently maintains and cuts clearances in alleys. Residents should have to maintain their own properties. If not compliant with the city ordinance, they should be fined accordingly. The man hours as well as the expense it takes the city crews to clear these. Alley ways could be allocated to other jobs they need to do.
Mrs. Tieman explained that it was staffs’ feeling that in some cases it is easier to have the City cut the alley rather than issuing violations and making repeated follow-ups with property owners. In addition, she stated that when clearances are cut by City staff, they are uniform.
Mr. McGlumphy suggested that staff consider issuing violations to residents and that a fee be incurred by the resident if the City cuts clearances in the alley ways.
In response to Mr. McGlumphy, Mrs. Ann Marie Townshend stated that for common property, such as an Apartment Complex or Shopping Center, the property owner pays for the maintenance of retention ponds and, if the property is in a subdivision, the Homeowners Association would pay. She explained that the maintenance is defined under the Kent Conservation District.
Responding to Mrs. Williams, Mrs. Tieman stated that grass cutting fees would be held as a lien against the property and, typically, unpaid fees are transferred to the electric bill; however, because it is a lien it is not done automatically. It was Mrs. Tieman’s feeling that, due to the way the account is handled, it would be very difficult to automatically process unpaid fees to the electric bill.
In response to Mr. Shevock, Mrs. Townshend stated that, although the City owns the alleyways, the property owner is responsible for maintaining them.
#20 - City residents have not had a Tax increase in several years. With the city deficit, it is time
Mrs. Tieman reminded members that during their meeting of May 11, 2005 Council increased taxes by $.03 cents for FY 2005/2006. She explained that, currently, one cent on the tax rate is estimated to generate $289,457 and a taxpayer who owns a house assessed at $200,000 would pay an additional $20.00 annually, or $1.66 per month. Mrs. Tieman stated that for every $1,000 of assessment the tax would increase $.10 cents. City Clerk’s Office Note: During the meeting, it was stated that the tax rate for FY 2005/2006 was increased by $.02; however, the actual increase was $.03.
Mr. McGlumphy requested that staff provide members with an estimated cost savings for each item (items #1 - #30).
Debt Management Policy Review
Members were provided the revised Debt Management Policy, which was reviewed by Mrs. Donna Mitchell, Controller/Treasurer. Referring to page 14, Section V - Restrictions on Debt Issuance, Subsection iv, Mrs. Mitchell explained that the proposed revisions include amendments to Article IV - Financial Affairs, Section 50 - Debt Limit, Subsection (c)(i) of the City of Dover Charter by removing the $3M limit on borrowing without a referendum, while maintaining a threshold of 1/4 of one percent (.25) of the taxable assessed value of real property of aggregate principal amount, adopted by City Council during their meeting of January 26, 2009. In addition, she stated that her previous position title, Treasurer/Finance Director, has been replaced with Controller/Treasurer, which was approved by members of Council during their meeting of January 14, 2008.
Staff recommended approval of the amendments to the Debt Management Policy.
Mr. Leary moved to recommend approval of the revised Debt Management Policy (Attachment #1), as recommended by staff, seconded by Mr. Shevock and unanimously carried.
Mr. Leary moved for adjournment, seconded by Mr. Shevock and unanimously carried.
Meeting Adjourned at 6:28 P.M.
Respectfully submitted,
William P. McGlumphy
Chairman
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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20098-10-2009 LF&A.wpd
Attachment
Attachment #1 - City of Dover Debt Management Policy