HomeMy WebLinkAboutMinutes - City Council - 12/20/2010 (2) \w-3
CITY COUNCIL 20 DECEMBER 2010
The South Burlington City Council held a regular meeting on Monday,20
December 2010, at 6:00 p.m., in the Conference Room, City Hall,575 Dorset St.
Councilors Present: M. Boucher, Chair; S. Dooley, M. Emery, J. Knapp, F. Murray
Also Present: S. Miller, City Manager; R. Rusten, Assistant City Manager; P. Conner,
Director of Planning&Zoning; J. Ladd, K. Murphy, City staff; J. Rabidoux, Public
Works Director; T. DiPietro, Stormwater Superintendent; M. Griffin, L. Denning, C.
Tabor, L. Ravin, M. Young,B. Stuono, S. Birkett, G. Desautels
1. Executive Session:
Ms. Dooley moved that the Council meet in executive session to discuss personnel
matters, contract negotiations, possible legal action, and possible property acquisition.
Mr. Murray seconded. Motion passed unanimously.
Regular Session:
1. Comments & Questions from the Audience, not related to Agenda Items:
No issues were raised.
2. Announcements & City Manager's Report:
Ms. Emery: Suggested an official welcome for returning troops. This will be referred to
the Veterans' Committee.
Ms. Dooley: Attended a conference on working landscape in Vermont.
After considering the budget meeting schedule, it was felt to be better to hold the
second meeting on Exit 12B/13 in late February. The question remains as to whether to
continue to endorse 12B in the Comprehensive Plan. Ms. Dooley noted that Mr.
Rabidoux attended last week's MPO meeting at which there was 12B discussion. One
criteria is that consideration of 12B would have to be consistent with the city's
Comprehensive Plan. Ms. Dooley suggested that a letter be sent to the MPO telling
them that this will be considered as part of the Comprehensive Plan update review. The
MPO decided not to submit a justification plan until after the city's Comprehensive Plan
review is complete.
Mr. Miller: Noted that a report has been issued indicating the following: a) the origins
of the city's unfunded pensions obligation; b) a financial statement; c)the auditor's
comments on disclosures. Mr. Boucher suggested the report be discussed publicly. Mr.
Miller said the auditors will be back on 10 January to continue the process.
CITY COUNCIL
20 DECEMBER 2010
PAGE 3
market assumptions
3. There is no"one size fits all."
4. Take a long-term perspective,but don't lose sight of the short term.
5. Look at alternative investments.
Ms. Griffin then said that their long-term recommendation for South Burlington is to
have 60% equity and 40% fixed income. She noted that in 2001, they went from 70%to
60% equity.
Mr. Murray asked what the city pays for these services. Ms. Denning said about
$15,000 annually. Ms. Griffin added that the fee schedule has been the same for about
10 years. Mr. Murray then asked if the retirement age needs to change since the city
now has public safety people retiring at age 50. Ms Griffin said there is a cushion there.
She felt they were very conservative.
Mr. Miller noted that the city has more money than it needs to pay retirees each year.
Ms. Griffin said some of that money is in short-term investments and a small portion of it
in high yield. She added that the assets are growing, so the city can meet its obligations.
Ms. Griffin noted that they also do "risk reward" analyses which takes the current
allocation to see what the expected return will be. Mr. Boucher asked if the city is on
the aggressive or conservative side. Ms. Griffin said they are just where they need to be.
Ms. Griffin said their services also include help with portfolio construction and providing
quarterly reports. She noted that assets have been growing nicely in the past year. On
an annual basis, they do an analysis to validate the long-term strategy. They meet with
clients on an annual basis,more if needed.
5. Ratification of the Tentative Agreement with the Following Unions:
A. City Hall/Public Works
B. Police Department
C. Fire Department
Mr. Knapp left during this discussion due to a potential conflict of interest.
Mr. Miller outlined the terms of the contracts, including switching health insurance,
increasing pager pay, 2 hours pay for people attending evening meetings, and reopening
health insurance bids for 2012. He said that all but the Police Department did not have
CITY COUNCIL
20 DECEMBER 2010
PAGE 5
Mr. DiPietro then reviewed an example upgrading project and how it would work. Once
upgraded, the storm water utility would take over management of the system. He also
explained how the financing would work, including the securing of grants. Project
funding may include the possible creation of a Stormwater Special Assessment District or
funding from grants or a lump sum check from a homeowners' association.
Potential increased expenses include taking over additional systems and possible changes
to the city's MS4 permit.
Mr. Boucher expressed concern that there wasn't as much diligence done to keep fees
segregated and asked if these concerns have been addressed. Mr. Rusten said they have
gone through every line of the budgets and moved items to where they feel they should
be. He felt the model and structure they are putting in place will address concerns.
Mr. Miller said there may need to be a rate adjustment discussion. He felt the model will
be OK going forward. He added that if the enterprise funds are owned money from the
general fund, that will have to be worked out.
A. Quarry Ridge:
Mr. DiPietro noted the city currently has a maintenance agreement with Quarry Ridge.
The city now needs to accept easements so it can gain access.
Mr. Boucher expressed concern that the city has made a promise and doesn't know the
future cost of it. Ms. Dooley questioned whether the city has the option to renege on that
promise.
Mr. Knapp moved to accept the irrevocable offer of dedication as presented. Mr.
Murray seconded. Motion passed unanimously.
B. Special Assessment District:
Ms. Dooley indicated she would not participate in this discussion as she and her husband
own property in Oak Creek Village.
Mr. DiPietro said they have moved forward enough to begin to collect money so that
work can be done this coming summer. Mr. Boucher asked if the neighborhood is
comfortable with this.
Residents of Stonehedge noted that they have 3 master associations, so they all had to get
CITY COUNCIL
20 DECEMBER 2010
PAGE 7
Mr. Birkett said he has a letter from the Legislative Council which says the dischargers
are always responsible for the property. He added that if"push come to shove, the
homeowners pay for it."
Mr. DiPietro noted the city has also been asked by South Pointe to take over their permit.
He explained that there are 30 residential state permits issued in storm water impaired
watersheds in South Burlington. Two have already been transferred and a third is
underway. There are also maintenance agreements with 5 permitees in impaired
watersheds. A 2006 City Council resolution expressly states that the Utility was to
accept valid permits. Mr. Boucher said he just needs to see a budget to be sure the city
can do this.
E. MS4 Permit:
Mr. DiPietro said the City's MS4 permit draft was sent to the EPA in October 2010.
ANR's response will be available when the permit is issued.
Proposed changes to the MS4 permit include:
1. The city is responsible for developing flow restoration plans for all impaired
watersheds in 3 years.
2. All plans should be implements within 10 years.
3. City to fund stream gauging in impaired streams (previously paid for by ANR)
4. Permit fee increased from $0 to $1000 for a 5-year permit.
5. The penmit may be appealed by any party.
Mr. Rabidoux said they are concerned with the costs as the city is clearly not in a position
to fund such projects. Total implementation could cost$39,000,000. Mr. Knapp noted
that no community has the number of impaired watersheds that South Burlington has (5).
7. First Reading of Amendments to the Land Development Regulations:
Suggest Public hearing for 18 January 2011:
Mr. Murray moved to waive the reading of the Amendments and to schedule a public
hearing for 18 January 2011. Ms. Dooley seconded. Motion passed 4-0.
Mr. Conner said he will post all information on the website. He noted that the City
CITY COUNCIL
20 DECEMBER 2010
PAGE 9
retirement:
Mr. Murray moved to affirm the Council's decision to provide Charles M. Hafter with his
city provided laptop and printer upon his retirement. Ms. Dooley seconded. Motion
passed 4-0.
14. Review and Approve Minutes of 29 November, 6 December, and 13
December:
Mr. Murray moved to approve the Minutes of 29 November, 6 December, and 13
December as written. Ms. Dooley seconded. Motion passed 4-0.
15. Sign Disbursement Orders:
Disbursement orders were signed.
As there was no further business to come before the City Council, the meeting was
adjourned at 9:45 p.m.
Clerk
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-40
south:mrtiAgton
Sent+t i 1.'Miller,City Manager
smitler@sbuaItnski
TO: Sanford Miller, City Manager
FROM: Kelly Murphy, Policy&Planning Analyst
Date: January 3, 2011
RE: Credit Card Policy
Proposed Action: Approval of policy for City issued credit cards.
Background & Purpose: The purpose of this policy is to establish criteria for the proper
use of credit cards when conducting City business. This policy will define responsibilities
and clearly delineate lines of authority. After reviewing several municipal credit card
policies it became evident that many of them incorporated the following best practices
recognized by the Government Finance Officers Association (GFOA): clear expectations
of use and responsibility, development of record keeping requirements, creation of timely
reconciliation standards, and procedures for handling lost and stolen cards.
Additionally, South Burlington's policy has an attached Credit Cardholder Agreement,
listing of authorized cardholders, and condition notifying vendors of South Burlington's
tax exempt status. Currently there are four city issued credit cards in circulation. Please
refer to Appendix A of the draft Credit Card Policy for a listing of cardholder names,
titles, and limits. Cardholders have reviewed this policy and are accepting of the terms
and conditions. This policy will ensure that City credit cards will be used correctly and
that posted transactions are for official City business.
Recommendation: Please review the draft Credit Policy. Staff recommends that you
make a motion adopting the terms and conditions presented in the City of South
Burlington Credit Card Policy.
575 Dorset Street South Buii;ngton,VT 05403 tel 302.846.4107 fax 802.846.4101 smi=PerQsbuji.co c: WWW.shurl.COm
City of South Burlington
Credit Card Policy
Purpose:
Credit cards issued under this policy may only be used by the name of the cardholder to
conduct City business. Credit cards may not be used for personal purchases, cash
advances, or purchases that exceed the cardholder's authorized purchase limit. The
authorized purchase limit is set by the City Manager, except for the credit limit of the
City Manager,whose limit shall be set by the City Council. A cardholder who makes
unauthorized purchases or advances will be liable for the amount oI such purchases or
advances,plus any administrative fees charged by the bank in connection with the
misuse. In the event a card is used mistakenly by an employe o a a unauthorized
purchase the employee must notify the Deputy Finance Officer Assistant City Manager
and make arrangements for payment(direct payment oraroll cdemtion). Employees
a�
may be subject to disciplinary action for misuse of the ty$credit card.:ip to and
including termination. The purpose of this policy£isto establish criteria g-, the proper use
of credit cards when conducting City business. . € °
To receiveyour assigned or temporary-use � � `'g p ry-use credit c ; ase read this Credit Card
Policy and return the Credit Card Holder Agreement to ,e ,City Clerk's Office. Retain
the Policy and a copy of the signed agr � jit and any revs is for your reference.
t t
11 1,iliiiii,, :i
Conditions: ''
I. Only autho r i ed h 1oyees of tl it C"ity of South Burlington mayuse the City's
Y
credit car d ,,,
II. A City L +. card may be used for thpipurchase of good or services for only
official businessof the .it„ of Sout Burlin on.
III. _-,loyee . the c e it card must submit receipts, documentation
,e Il{nL = oo �' crvicespurchased, cost, date of purchase
i lob � t p chase and official
business ex �l ation thereat.
I� i Above mention 0d receipt 'and documents must be submitted to accounts
' - able in a timely manner(within a week of receipt of the statement) to
re ,•Nile the monthly credit card statement.
V. The ogee issued the card is responsible for its protection and custody and
shall iris 00ly notify the City Clerk's Office if the card is lost or stolen.
VI. City creditcard users must notify vendors or merchants that the credit card
transaction should be exempt from Vermont Sales and Use Taxes (IRS Tax
Identification#03-6002712) if it is used for the purchase of goods or services
in the State of Vermont. If sales tax is improperly charged, the employee may
be responsible for paying the sales tax.
VII. Employees must immediately surrender the card upon termination of
employment. The City reserves the right to withhold final payroll checks and
payout of accrued leave until the card is surrendered.
kmurphy Page 1 12/30/2010
Appendix A:
Current Cardholders
Name Title Limit
Sanford Miller City Manager $4,000
Douglas Brent Fire Chief $3,000
Donna Kinville City Clerk & Treasurer $1,500
t Justin Rabidoux Public Works Director $2,500 ,flirt'
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TO: Sanford Miller, City Manager
FROM: Kelly Murphy, Policy&Planning Analyst KIA
DATE: January 3, 2011
RE: Retirement Income Plan(RIP)Restatement
Proposed Action: Selection and approval of a qualified pension attorney to review and
restate South Burlington's Retirement Income Plan(RIP)to meet the federal statutory
deadline of January 31, 2011.
Background &Purpose: Following the review of the 2010 RIP Actuarial Valuation
report Sandy Miller and Tracy Braun(the actuary) discussed updating the Plan document
along with fulfilling the January 31, 2011 restatement requirement. As a result of this
conversation Tracy compiled a list of three qualified pension attorneys. I contacted each
of them to get a proposal. I requested that they consider what it would cost to review the
plan document,recommend changes, and file a restatement letter with the IRS. Proposal
results are listed in Table 1 below.
Table 1. Proposal Bid Sheet
Review Revision IRS Submission Total Cost
Brian P. Goldstein- $4,000— $1,000— $1,500 $6,500 —
Jackson Lewis, LLP $7,000 $2,000 $10,500
Steward M. McGough - See Total See Total See Total $4,500
Scolaro, Shulman,
Cohen, Fetter, &
Burstein,P.C.
Richard A. Sirus - See Total See Total See Total . $7,500
Greenburg Traurig, LLP
Note.McGough&Sirus submitted proposals at a total contract cost. Goldstein chose to provide a cost for
each individual contract service.Proposals do include updating the summary plan description along with
submission of required IRS document.
McGough's proposal is the most cost effective. Just to be certain, I contacted him to
make sure that his proposal is inclusive of all items requested.
S75 Dorset Street: South Burlington,VT D5403 .'of 80 846 410.7 fax 602.846.4101 skiiller@sbur[.r;o:m www.sburl.corn
R-1 1-01
A RESOLUTION OF THE CITY OF SOUTH BURLINGTON
APPROVING THE REVIEW AND RESTATEMENT OF THE SOUTH
BURLINGTON RETIREMENT INCOME PLAN BY JANUARY 31,2011
WHEREAS,periodic review and restatement of the South Burlington Retirement
Income Plan (hereafter referred to as the Plan)is a necessary requirement to guarantee
compliance with governmental standards; and
WHEREAS, the IRS mandates periodic restatement of the Plan and the next
required restatement is due January 31, 2011; and,
WHEREAS,to properly restating the Plan the services of a qualified pension
attorney are needed and the City obtained three quotes from qualified firms, all of which
are able to perform the required services by the January 31, 2011 deadline.
NOW, THEREFORE, BE IT RESOLVED, at a regular meeting of the City
Council,the City Manager is hereby authorized to engage the legal services of Scolaro,
Shulman, Cohen, Fetter, &Burstein, P.C. to restate and review the Plan document with
an estimated cost of$4,500, which may increase if additional services are requested by
the City Manager or City Council.
Dated this day of January, 2011.
Mark Boucher, Chair
Sandra Dooley,Vice Chair
James Knapp, Clerk
Meaghan Emery
Frank Murray
•
Introduction of the
City Manager's Proposed
Fiscal Year 2012 Budget
January 3,2011
Sanford Miller,City Manager
Robert Rusten,Assistant City Manager
General Fund Budget:
FY2012 Expenditures
•In FY2012 General fund spending is proposed to
be$17,595,573.
•In FY2012 it is projected that$10,658,308 will
need to be raised by property taxes(tax levy).This
is an increase of$870,913 from FY2011.
•We are assuming approximately'/z percent growth
in the Grand List.
— •This yields an estimated tax rate of$0.3918,and
increase of$0.0277(2.77 cents),from the FY2011
municipal tax rate of$0.3641or a 7.62%increase.
General Fund: FY2012 Tax Impact
•The average family home in South Burlington is
Valued at$270,000.
•The average family will pay an additional$74.79
annually in municipal taxes.
•FY2012:$270,000/100=$2,700
$2,700 X.3918=$1,057.86
— •FY2011:$270,000/100=$2,700
$2,700 X.3641=$983.07
1
FY2012—Summary
All Funds,Expense and Revenue
r a�
Critical Budget Line Items:
General Fund
Line Item Net Change
Stormwater $130,000(+)
Pension $261,000(+)
Local Option Taxes $306,000(-)
Interest Income $135,000(-)
Surplus $201,000(-)
Total $1,033,000
Internal Controls and
Financial Management
•Purchase order system;
•Institute standard operating procedures to prevent
over spending of line items;
•Weekly account reviews conducted by the Finance
Department;
•Segregation of funds;
— •Enhance financial management software;
•Provide departments with monthly budget reports;
•Develop a schedule of assets;
•FY2013 Capital Improvement Program.
2
Pension Contribution
• Pension calculations in the FY2012 budget are based on actual;projected
salaries and the percentage of payroll contributions pursuant to the actuaries
report of Oct.29,2010.
• The City contributes 22.4%for non-pubic safety employees and 25.1%for
public safety employees.
• In most of the past ten(IO)years,the City's contribution toward the South
Burlington Retirement Income Plan(SBRIP),did not meet actuarially
recommended dollar amounts.
• Base on staff census for the FY2012 budget,the total contribution for all
departments and funds to the SBRIP is$1,660,000.
• Several employees have been offered and switched retirement benefits to the
Vermont Municipal Employees Retirement System(Plan B).The City will
contribute considerably less to this Plan,9.5%of salary.
• Some costs,such as portions or all of the Actuary and Investment Management
fees have been paid from pension assets in the past This has an impact of
"financing"these operational expenses over thirty(30)years at 7.5%.This
practice will be discontinued
Staffing
• In FY2011 there were 128 full-time employees.16 part-
time employees,12 on-call firefighters,and 40+seasonal
recreation staff members.
• In FY2012 across all funds there will be at least eight(8)
fewer full-time-equivalent(F 1 Ots).Reduction figures are
the result of abolishing positions,leaving some positions
vacant,and layoffs.
• In addition,some departments have been reorganized.
Notably,what we consider a realistic number of staff
positions are shown in the Ambulance budget,which
makes it appear larger in FY2012
General Fund Payments and
Services to the School District
•Community Use-$26,938
•School Use-$16,981+$1,000 for wage
reimbursements
•School Bus Drivers-$1,000
•School Grounds Maintenance-$32,609
•Four(4)School Resource Officers-$250,000
— •Maintenance of Buses at DPW
•Library Use Space-$71,869
3
Program& Service Reductions
•Highway paving;
•Highway snow removal;
•Library Hours(3 hours per week);
• Reduction in School Resource Officers;
•Reduction in Planning&Zoning response time
due to reduction in administrative staff;
— •Others to come.
User Fees & Charges
•Ambulance transport fees;
•Ambulance billing services;
•Library charges;
•Planning fees are under advisement;
•Parking tickets.
Cost Savings Measures Enacted
•Health insurance;
•Retirement Income Plan conversion;
•Other benefit reductions for management and non-
represented staff;
•$150,000 reduction-Management/Staff
Challenge.
4
Special "200 - 600" Funds
•The FY2012 budget contains a listing of dozens of
"special funds,"which were previously off-budget
or in other words unrecorded.
•A number of theses funds have been eliminated or
incorporated into the General Fund Budget.It's
expected that more"200"funds will be eliminated
in the future.
•FY2012 expenditures are estimated at$933,378
and revenues are at$1,078,587
Water Fund Budget: FY2012
•The Water Fund budget for FY2012 is proposed at
$2,323,935.
•Water User Fees are projected to increase by
about16.64%.
•Due to recent deficits,increases in wholesale
water costs,and other operating cost increases.
Stormwater Fund Budget: FY2012
•The Stormwater Fund Budget has been operating
at a deficit since FY2010.
•Reserve funds have been depleted.
•Rates have not been increased since the inception
of this Fund in 2008.
•In order to establish required reserve funds for on
going projects;Fund revenues need to increase by
31.92%.
5
Water Pollution Control (WPC)
Fund Budget : FY2012
•The WPC Fund Budget is proposed at$3,885,000.
•WPC User Fees are projected to increase 46.67%.
•$1,207,555 of the$3,885,000 total fund budget
will be used to help pay for Airport Parkway
construction costs and debt service payments.
•Increases are attributed to:operating deficits,a
flawed funding plan for Airport Parkway
expansion,and artificially low rates.
Capital Budget & Debt
FY2012-Acquisition FY2012-Debt Service
Ambulance-$170,000 Existing Debt-$1,576,004
(General&Enterprise Funds)
3 Public Works Quint Fire Truck—$750,000
Vehicles-$335,000 5-Year Note =$163,000 P/Y
Total Purchase:$505,000 Total Debt:$1,739,004
Options for
City Council Consideration:
•Financing the pension obligation;
•Further reduction in staff and service;
■Conservation funding;
•Rescind or restate SAFER grant;
6
Goals and Objectives
•Budgeting,auditing and implementation of
changes to financial management system;
•Prior year inter-fund transfers;
•Technology;
•TIF;
• City Center Project;
•Workplace Safety Committee;
•Employee Benefits;
•Relocation/restructuring of office operations.
7