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HomeMy WebLinkAboutMinutes - City Council - 01/12/2012CITY COUNCIL 12 JANUARY 2012 The South Burlington City Council held a budget workshop on Thursday, 12 January 2012, at 7:00 p.m., in the Conference Room, City Hall, 575 Dorset St. Coucilors Present: S. Dooley, Chair; M. Emery, P. Engels, R. Greco Also Present: S. Miller, City Manager; R. Rusten, Deputy City Manager; J. Rabidoux, Public Works Director; T. DiPietro, Stormwater Superintendent; J. Fay, J Timecki, Water Department; M. Young, L. Bresee 1. Agenda Review: No changes were proposed. 2. Comments & Questions from the Audience, not related to agenda items: Ms. Dooley noted that she and Mr. Miller had testified before the State Legislative Committee regarding the proposed Charter amendment dealing with voting. The Committee voted out the amendment 11-0. It will now go to the State Senate Committee. They are aware of the time constraint so the amendment can be in effect for the March vote. 3. Budget Workshop to review FY2013 Budget: A. Water Fund/Department: Ms. Dooley asked why the water rate is up 28% if the budget is up only 4.14%. Mr. Fay said it is a result of water sales. Mr. Rusten added that some revenues are also going up, and some are going down. Mr. Miller said some insurance costs were also backed out because they were not justified. Ms. Dooley asked if last year’s flooding resulted in less water usage. Mr. Fay said it did not. Mr. Fay also noted that South Burlington’s rate markup is the lowest of the 12 communities in CWD. Ms. Emery asked what factor water meters play in the rates. Mr. Timecki said meters lose accuracy over time. The “radio read” system is static because of technical issues. There is a 14% failure rate. The company offered to replace the radio heads at no charge, but even with the new ones, the failure rate was 14%. CWD then decided not to use them. There is no failure rate with the touch pads. Mr. Miller said he felt that was the correct decision. He added that there is discussion as to what it would cost to replace all meters (old ones have to be replaced anyway), financing that and quickly picking up cost efficiency of reading the meters from vehicles, using a different manufacturer. Mr. Timecki noted that in another community there is a -1% failure. Mr. Miller said they may also look into antennas in the city that would eliminate the labor cost altogether. Ms. Emery said she wanted to learn from the mistake and felt responsible because she was on the Council that made the decision for the meters that failed. Mr. Fay said they went with a product that was not one of the top 2 in sales but was a good product based on responses. He noted that one of the ones they will be looking at has a guarantee money back arrangement based on an error rate. Mr. Timecki said the cost for meter replacement (material and some labor costs) would be $1,087,000. If you bond for it, you have to add interest costs. He noted that labor costs would overwhelm the department, so there would have to be additional labor bringing the cost to $1,300,000. Mr. Miller said this could be amortized over 10 years and could be a good decision if error rates, etc., are figured in. They are aiming for a proposal in time for the November ballot. Ms. Emery asked if this is figured into the debt. Mr. Miller said it is not as they don’t have enough cost information yet. This will not affect the FM13 budget. Ms. Greco asked what “inactive” means with regard to meters. Mr. Fay said you just can’t get a reading from a vehicle. You have to physically go to the meter to read it. Ms. Dooley noted that equipment rental is up about a third. Mr. Fay said it goes up and down every year, depending on the type of vehicle which is purchased for South Burlington. Ms. Greco asked about the “administrative services fee.” Mr. Rusten explained that this began last year and has increased in this budget. There is also an excavation fee for digging, the same as the city would charge anyone else. b. Stormwater: Mr. Miller said no rate increase is proposed. Mr. Rusten added that there is now a 5-year capital plan. Mr. Rabidoux said they are now accounting for all money going through storm water, and the increase is almost a direct offset. They are also putting money aside for future expenses. Ms. Greco asked about bills from the federal government. Mr. Miller said these amount to $40,000,000. Mr. DiPietro said this relates to stream conditions. There are plans from the state, and that is the cost to implement those plans. Mr. Miller said future plans haven’t been identified because the rules are not yet set. Mr. Rabidoux noted that South Burlington was very forward in establishing the Stormwater Utility, knowing that at some time this would have to be put in place. Some communities will be facing a much steeper curve to catch up. He added that South Burlington will not be on its own for the $40,000,000. There will be some kind of revolving funding. Mr. Miller said the question is why this is being done municipality by municipality when it should cover a watershed. He added that the politics are very complicated. He agreed that the Stormwater Utility was a good investment. Ms. Dooley asked if Land Development Regulations require a developer to address storm water issues so as not to make things worse. Mr. DiPietro said they do. Mr. Rusten noted there is $20,000 in the budget to fund a study regarding equity and how the charging method is structured. The aim is to figure out long-term how to put in enough money. Ms. Dooley questioned what regulations would apply when units are built under the recent land-swap. She noted that the original approval was under the old regulations. Mr. Miller said they will now be governed by the new regulations. Ms. Dooley said homeowners are concerned they will have to foot the bill instead of developers. Mr. Miller said this is a state-wide issue, not related specifically to South Burlington. Mr. Miller noted the difficulties for people when fees increased, but they were told there wouldn’t have to be such large increases in the future. This year there is no increase. Ms. Emery asked for an explanation of what a water bill includes. Mr. Rabidoux explained how the bill encompasses water, sewer and storm water. CWD does the billing for storm water as well as for water and sewer. Ms. Emery asked about vehicles and equipment in the budget. Mr. Rabidoux said they are trying to create “cost certainty.” Stormwater doesn’t have much equipment, but what they have is expensive. To eliminate spiking, they have decided to allocate $200,000 a year to level fund fleet purchases. This year they will purchase only a smaller piece of equipment. Ms Emery also noted the large fuel bill. Mr. Miller said they are budgeting what they are actually spending. Ms. Emery asked about orthophotography. Mr. Rabidoux explained how photographic maps provide accuracy in finding the location of pipes, etc. The maps also come with topography. Mr. Engels asked if commercial/industrial property will also be looked at when considering equity. Mr. Rabidoux said that hasn’t been defined yet. What they are hearing from the public has to do more with residential property. Members asked to know the storm water payments of the top ten payers. Ms. Emery asked if street curbs are detrimental. Mr. Rabidoux said you create a closed system with curbs. The water has to go somewhere. He added that it does get more treatment prior to release. Mr. Miller said the problem with getting rid of curbs is that subdivisions are designed abound curbs and ponds, and there may not be enough room for an alternate system. Mr. Rabidoux said curbs have both benefits and liabilities. Mr. Bresee said storm water is a very small part of what the city does. He felt that doing this in detail like everything else was good. Mr. Miller then explained that arrangement with the state regarding storm water payment. They explained what they do on roads that they should get credit for. Mr. Miller said it is refreshing to work with this State administration on this issue. It’s a big change from the past. c. Water Pollution Control Mr. Miller said there is more good news here. Because of the previous increase in fees, they are on a curve to build up a reserve for future needs. They have flattened the rate increase to 1.5% and that includes an additional staff person for a position that has been unfilled since Steve Crosby’s promotion. The position is necessary for the new, upgraded facility. Mr. Rabidoux cited the challenges this year, having to work in a plant that was under renovation/construction. He noted the plant gets the highest possibly grades in annual inspections. Mr. Miller said they are working on a Class A sludge issue and hope that will produce additional budgetary benefits in years to come. He also noted they are building up funds for a large loan payment next year. Ms. Dooley noted that salaries are up 12% and health insurance is up 27%. Mr. Miller said you have to assume the new hire will have a family membership. Mr. Rusten added they are also budgeting in a 10% increase because they don’t know what the health insurance cost will be. Mr. Miller said if it is less than 10%, the money will be returned to the coffers Mr. Young said he had a problem with a 12% salary increase. Mr. Miller said nobody is getting a 12% increase. That increase covers a new hire. d. Public Works and Parks: Mr. Rabidoux said the shop is in the best position ever from the standpoint of morale. Mr. Miller noted that the budget includes one additional truck driver. Ms. Greco asked if there is enough staff and equipment to handle snow. Mr. Rabidoux noted that last year was the third worst year in history for snow. At that time, some equipment was at the end of its lifetime, and they had not been replacing equipment on a schedule. That is being done now. Mr. Miller added that last year there were big dumps of wet snow that couldn’t be maneuvered. This overwhelms anyone’s system and was not a function of any budget cuts that were made. He also noted that no routes have been added in 10 years, but with the right equipment that may not be needed. Ms. Emery asked about salt purchase. Mr. Rabidoux said it is based on history. He stressed that they don’t control spending by not salting. Ms. Greco asked about potholes. Mr. Rabidoux said the major problems are on Routes 2 and 7, and both will be repaved this year. Mr. Miller stressed that these are both state roads, not the city’s. Mr. Rabidoux noted that Spear Street will be repaved this year. Ms. Emery questioned that amount for gasoline. Mr. Rusten said they have broken out school buses this year. Ms. Emery asked about building improvement. Mr. Rabidoux said the office is 10 years old and has a few problems. They also need additional storage for salt and sand. This needs to be under cover. They also need a couple more garage bays. Mr. Rusten noted the new project manager will be addressing that as part of a capital plan. Ms. Dooley asked about having staff do some things that don’t have to be contracted out. Mr. Rabidoux said they do that when they can. Mr. Bresee said the state has put some restrictions on that when it’s related to grants. He said they encountered that at Tilley Drive. Ms. Greco said she doesn’t know how they manage to get so much done with the size of the staff. Mr. Miller said the word is “efficiency.” He noted the city will still have less staff than 2 years ago, but with fine tuning, etc., they are a lot close to where things need to be. He also noted that there is a lot of offsetting revenue accompanying costs. Mr. Engels said he personally would like to see more personnel in Public Works and Planning and possibly less in Police as crime is down. Mr. Miller noted the Project Manager is a response to Planning and Public Works. She will deal with long term planning and thus allow more time for daily activities. He stressed they are trying to move forward without too much sticker shock. Ms. Dooley noted a reduction in recreation staff for maintenance. Mr. Rabidoux said historical actuals haven’t been expended. He added that sometimes they share expenses with the Recreation Department, and some of that money is more appropriate for the Recreation Department budget. Mr. Bresee noted the Recreation Path Committee has a lot of interest in what Public Works does. He added that they have been looking forward to the Spear Street work. 4. Executive Session: Ms. Emery moved the Council meet in executive session to discuss contracts and to resume regular session only for the purpose of adjournment. Ms. Greco seconded. Motion passed unanimously. 5. Regular Session: Council returned to regular session. As there was no further business Mr. Knapp moved for Council adjournment. Ms. Dooley seconded. Motion passed unanimously. Council adjourned. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.