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02-04-86 Public Works Comm MinutesW February 4, 1986 PUBLIC WORKS COMMITTEE 3:00 P.M. Chairman Ruiz and Committee members Palmer and Schindler, with C. Hafferman arriving later, were in attendance. Mayor Kennedy, DPW HAmmer, Surveyor Zavodny, Clerk Halver and Roger Hopkins of the ➢aily Inter Lake also present. - STREET DEPARTMENT/GARBAGE DEPARTMENT FUNDS - DPW Hammer distributed a memo from the Public Works Department concerning the Street and Garbage Department funds. The Committee took time to read the memo and discussion followed. DPW Hammer explained that Street Department funds were short because the two west side garbage crew not needed when the sidearm loader was implemented' were transfered to the Street Department and were being paid from Street Depart- ment funds even though those two salaries had not been budgeted for in the Street Department. C. Ruiz commented that the City must lay off enough employees to save $33,000. C. Palmer asked if there were any other resources available or if these people were working productively could they be used elsewhere. DPW Hammer explained that the problem was to maintain the salaries without registering warrants to do so. Clerk Halver asked why he felt it necessary to operate on a cash basis, and DPW Hammer replied that it was just good practice. Clerk Halver responded that in order to do that they would need a huge levy and operating maintenance fund. DPW Hammer went on to explain that the original intention of the sidearm loader was to lower costs, and eventually the garbage assessment, and the City would be hard pressed to raise the assessment. C. Ruiz said they should cut back street work to stay within the budget. The Gas Tax Fund was discussed: revenue, budgeting, hold over from 1984-85, the fact that the assessment didn't generate the predicted revenue ($30-40,000 short), Council decreasing the levy from .0024 to .0023, and questions about verification of the 1984-85 figures before budgeting for 1985-86. Clerk Halver is to check to see what the revenue was in 1984-85. If it was correct in 1984 it should be right in 1985-86. If not the County is shorting us somewhere. The Committee would like a reason for the deficit.. DPW Hammer expalined that in the Special Maintenance Fund if the City continues as they are at present they will be over budget. 70% of the salaries have been expended (should be 587). This would be over budget regardless of the shortfall of receipts. He said they could stay in the budget, but they would go in the hole. The present hit and miss policy of who decides what fund to take from needs to be resolved and settled. Clerk Halver felt that someone other than Landa should decide which fund should be charged when. DPW Hammer stated that it was an administrative/accounting decision, but did suggest that 1/12 from each account monthly would help. Clerk Halver asked that DPW designate which account personnel are working under. C. Ruiz asked that Clerk Haver check on 1984 special assessments to see if receipts were down, and stay with the projected budget. DPW Hammer expalined that the Gas Tax is okay. There is $67,000 until June 30. C. Ruiz asked if there was any Mall work done that was paid for out of regular accounts rather than Tax Increment. DPW Hammer felt that only some work by a crew of 6 on 4th Avenue West North could be charged back to Tax Increment. PUBLIC WORKS COMMITTEE February 4, 1986 Page 2 DPW Hammer stated that according to the 1984 memo the bottom line was that there were two extra men. C. Schindler said the Council had wanted to lay them off but Mayor McDowell didn't want to. C. Ruiz pointed out that the budget had been set with no layoffs planned for. Clerk Halver said the Garbage budget had been set less than was spent the previous year.. Mayor Kennedy asked about trucks not in use that might be sold. DPW Hammer indicated there were two and that the City must go out on public auction to sell them. This is usually done in April but could be done before. C. Palmer stated that the Committee had several options: Garbage: Operate into a deficit Register warrants Give adequate notice and lay off extra employees Go City wide with the sidearm loader Street: Have overspent for various reasonsNow also paying 2 garbage employees(have in essence already laid off from garbage) Operate in a deficit Hope attrition levels out Do maintenance only this next year and use funds for labor and maintenance, not construction ($110,000 for materials only for 22 blocks this year) DPW Hammer pointed out that the City is committed to completions and the list of streets they should do this year is 27 blocks. He reminded the Committee that in order to keep up with schedule the City must do 30 blocks a year of maintenance and reconstruction. C. Palmer indicated that a City-wide SID was needed. He stated the choices again: Layoffs, don't maintain streets, or find additional revenue. C. Palmer went on to say that in 1984-85 $53,000 went to the Police Department because they were in a bind - and it came from funds for materials for the Street Department. Lack of funds makes a cripple of the Street Department. He stated that it was time to get the Street Department the funds needed to do the job. He then went on to explain the new county policy and gave the history of our reconstruction program beginning with just reconstruction and then the addition of water and sewer replacement. Doing all of this takes longer and created a need for some bid letting but the streets will not need anything for another 20 years. The Water Department has a budget to fit it's needs, the Street Department doesn't. The taxpayer wants capital - improvements for his tax dollars, and yet this is the first area that gets cut. In Fire and Police the City does what is necessary to maintain liability, the Street Department should be the same. C. Schindler said he couldn't see running on a deficit. Clerk Halver said garbage salaries are 7% over budget now (sick and vacation), and that the budget had been for 5, not 6. He asked why salary costs were not down in Garbage since the sidearm loader was now in operation. DPW Hammer explained that for several weeks both the old trucks and the sidearm loader were working during the transition, and with alley cleanup crews paid out of garbage it wouldn't show until November. PUBLIC WORKS CO u!ITTEE February 4, 1986 Page 3 It was suggested that $18,000 could be saved by laying off two street employees. C. Schindler suggested not hiring the Street Superintendent until the next budget year ($2,000/month x 4 = $8,000), while not giving the foreman the same responsibilities so as to avoid the union problem that was experienced with Steve Cox. C. Ruiz asked why not lay off 3 and save $27,000. C. Ruiz asked DPW Hammer to prepare a recommendation for the Council Workshop for cutting back three employees, perhaps on a standby basis in case of sickness, and that they would play the Street Superintendent's position by ear. DPW Hammer mentioned the additional problem in Special Maintenance short fall. The Council feeling is that they don't want to register warrants. Clerk Halver stated that the budget assumed registering warrants. The total on hand in Special Street Maintenance is $54,741 as of January 31. By June there will be $21,000 left to cover salaries from July thru December, and to cover materials from now until December. It won't make it. Mayor Kennedy pointed out that if we are going to proceed to the east side we need to start ordering containers. Discussion indicated that the City MUST lay off employees or it would be in the same position as before the Council let it float and didn't make a concrete decision because the Mayor didn't want to lay off. Lease option on containers was questioned but Clerk Halver pointed out that registered warrants are at 6% while a lease option is 7j%. The Committee was in favor of registering warrants for purchasing the containers for the east side. ajg 0