City Council

CITY COUNCIL MEETING CITY OF SARATOGA SPRINGS, NEW YORK TUESDAY, JANUARY 18, 2000 CITY COUNCIL ROOM 7:00 P.M. PRESENT: Kenneth Klotz, Mayor Thomas Curley, Commissioner, Public Safety Michael Lenz, Commissioner, Finance Thomas McTygue, Commissioner, Public Works Bernard Mirling, Commissioner, Accounts OTHERS PRESENT: Phillip Klein, Saratoga County Board of Supervisors Representative Anthony Scirocco, Saratoga County Board of Supervisors Representative STAFF PRESENT: Christine Gillmett, Deputy Commissioner, Finance Carol Kennedy, Deputy Commissioner Accounts Bob King, Deputy Commissioner, Public Safety William McTygue, Deputy Commissioner, Public Works Jeffrey Wait, City Attorney PUBLIC HEARING Local Law #1 of 2000 - West Avenue Special Assessment District Mayor Kenneth Klotz said because there were still many outstanding issues, he would not ask for a vote this evening on this proposed local law. He said it appears the urgency had decreased on voting on this issue tonight and the Council now may have until late February before making a decision. He said there was still much information to be gathered and he did not want to rush this decision. He said Matthew Jones, Chair, West Avenue Redevelopment Advisory Committee, still needed to have some discussions with DPW, Assessment and Finance. He suggested that another public hearing be held before the Council votes. Geoff Bornemann, City Planner, explained that the cost of highway improvements along this corridor is approximately $210,000, however, the cost of utility improvements is approximately $1,450,000 totaling $1,700,000. He said using those figures, the annual debt service for the City would be $165,000/year which would be shared with the property owners along this corridor. He said the Council must set the boundaries for this special assessment district. He informed Council members that east of West Avenue on Washington Street a section had now been excluded. Geoff Bornemann said the proposed draft ordinance would create the district and the powers and duties of that district/board. He said, though, the Council would have final approval over the SAD. He said this ordinance would set the formula and the boundaries. Kenneth Klotz clarified that the ordinance would establish all of the details, however, it would not provide the actual dollar amounts. Geoff Bornemann agreed. Mayor Kenneth Klotz opened the public hearing. Matthew Jones, Chair West Avenue Redevelopment Committee, said they recently learned that the time frame for adoption by the City Council had been extended until the latter part of February. He said this change of date allows for more review/discussions on this project. He said it will allow the 67 property owners more time to study the additional information and its impact on the area. He said they would make recommendations to the Council at its February 1 meeting and ask that another public hearing be set for Tuesday, February 15. He said they would then request the Council to vote on this local law at its February 15 meeting. Dick Cherry, 2 Albany Street, said he was concerned about looping the water line from Ballston Avenue to West Avenue. He said there were funds included in the City's budget several years ago and he wanted to know why this had not happened. He also asked why this SAD would stop at Congress Avenue. He said he was concerned about existing curbs along West Avenue. He questioned whether the City water in this area was acceptable for drinking. Commissioner Thomas McTygue assured Dick Cherry that the water meets standards for drinking. Dick Cherry questioned whether there was adequate pressure for fire protection. Rustom Rastinehad, West Avenue property owner, said he was concerned because 16 feet of his property would be used for this road widening, while there was a vacant lot across the street that would not lose that amount. He said it appeared that utilities were the reason and asked why they could not be moved to the other side. Mayor Kenneth Klotz suggested that he put his concerns in writing. Commissioner Thomas McTygue said he had met with Rustom Rastinehad and felt that his request might be acceptable. He said he had talked to Paul Male, City Engineer, who in turn would talk to George Hodges, DOT, to see if this request could be met. Bob Zima, 252 Washington Street, said the cost of the utility improvements was of great concern to him. He noted that the bulk of the cost of this project is the utility costs, which are primarily being installed for future development. He said he was concerned about paying for these utilities for vacant lands. Commissioner Thomas McTygue said he too was concerned about the cost of utility improvements and he had proposed that Washington Street and Station Lane intersections be pulled from this proposal and stubbed. He said developers should pay for these improvements as they develop areas. He also reminded everyone that this Council at no time agreed to split the cost 50/50. Bob Zima said there has been a lot of construction in this area over the last few years and construction costs are continually climbing. He said when the bids come in they could be much higher than anticipated and long term interest rates could affect these costs. Bob Zima said the five-acre parcel which is adjacent to a residential neighborhood had IDA funding stopped 16 years ago. He said it was felt that this narrow, long strip of land should be left as a sound and visual buffer between the backyards. Bob Cleary, 127 VanDam Street, asked about the utilities on Station Lane and whether the new rail station would be jeopardized. He asked if by not tapping into the lines would the new rail station be affected. Paul Male said there is sanitary sewer and an eight-inch water line. He said any other improvements on Station Lane would need to be paid for by developers. However, he said perhaps at some point the City could install sidewalks in that area. Patrice Carroll, West Avenue property owner, said she had attended most of the West Avenue Redevelopment Committee meetings. She said originally the SAD was proposed to be larger than currently proposed. She said obviously, the big question was how much SAD members would be required to pay. She said it was her recollection that the split would be 50/50. Commissioner Thomas McTygue said the Council never formally adopted a 50/50 split. Patrice Carroll agreed, but said there was an informal agreement of 50/50. She said she was concerned because the district had now been downsized. She said she thought the undeveloped parcels should share a greater burden since they would benefit more from these improvements. She also asked about water looping. Joe O'Neill, Director of Public Works, said there is a water line going down Buff Road to Geyser Road and then up Ballston Avenue. He said the solution to the water concerns in this area would be a water tower at the industrial park. Patrice Carroll said the City and new property owners would benefit more from these improvements than the existing property owners, since the property owners that already exist in this area are not having any problems. Geoff Bornemann, City Planner, said that looping could be investigated. Patrice Carroll asked under what law was this SAD being considered. Tony Izzo, Assistant City Attorney, said the City's Home Rule as well as sections of the City's ordinance allow for the establishment of this SAD. Patrice Carroll said she could be in favor of this proposal if the costs were not unreasonable. Tom Torgenson said this project claims to be an economic development project. He said the projected Tom Torgenson said this project claims to be an economic development project. He said the projected costs should be compared to the actual costs. He also suggested that the costs be broken down according to how much material was manufactured in the United States. He also suggested that records be kept on how much cash will actually go into the pockets of people not living in Saratoga Springs, will any Saratoga Springs residents get jobs out of this and which contractors would be used. Bob Zima asked why the eastern portion of Washington Street was being excluded from this project. Matthew Jones said originally the SAD boundary lines followed the zoning districts, however, property owners on the eastern portion of Washington Street have asked to be excluded. Paul Male, City Engineer, said topography was also why those parcels were excluded. He said perhaps they could be included in a "Washington Street, Phase 2" project. There being no one else wishing to speak, Mayor Kenneth Klotz closed the public hearing. It was agreed another public hearing would be scheduled for Tuesday, February 15 at 7:15 p.m. on this matter. PRIVILEGE OF THE FLOOR Will Mixer, 22 Lincoln Avenue, reminded Council members that he appeared before the Council in June 1999 with a three-part proposal. He said those three items included: 1) finding a building in the downtown area for kids; 2) holding a charette; and 3) revocation of the sidewalk ordinance. He said he had been working with Keith Coss, YMCA, on forming a committee to look into a downtown location and he hoped that a charette would be held in May. He asked the Council to consider revocation of the sidewalk ordinance because it is not being enforced, it is not a deterrent, it can be applied unfairly and the young people of this community feel targeted. He then submitted a petition with 69 names in addition to the petition he submitted last June. Mayor Kenneth Klotz thanked him for his presentation. ACCOUNTS DEPARTMENT Approval of City Council meeting minutes of January 1 & 4, 2000 Commissioner Bernard Mirling moved and Commissioner Thomas McTygue seconded for the approval of the January 1 & 4 City Council meeting minutes with a few minor corrections as noted by Mayor Kenneth Klotz. Ayes all. Records Department Grant - Authorization for Mayor to sign (00-019) Commissioner Bernard Mirling moved and Mayor Kenneth Klotz seconded for authorization for the Mayor to sign and submit the 2000-2001 grant application requesting funding from the Local Government Records Management Improvement Fund in the amount of $11,733 for the installation of an environmental control system in the Accounts Department vault. Commissioner Bernard Mirling said this environmental control system would regulate the heat and humidity in the vault. Ayes all. Resolution - Smart Review (00-020) Commissioner Bernard Mirling moved and Commissioner Thomas McTygue seconded that the Office of the State Comptroller be invited to conduct a SMART review in the Department of Accounts focusing on the City of Saratoga Springs Procurement Procedures. Commissioner Bernard Mirling said since he took office, he had been reviewing policies and procedures within the Accounts Department. He said it came to his attention that the procurement policy needs to be updated. He said it was his impression that the Broker of Record issue should fall under his office and he suggested that the Council hold off on making a decision on that issue until policies and procedures are in place. He said he would start drafting policies and procedures immediately, however, some items such as liability insurance and labor negotiations attorney were items that were coming up quickly and needed to be dealt with soon. He asked Council members come to him with their questions/concerns on the policies/procedures on procurement. Mayor Kenneth Klotz said he supported this motion. He said the City needs to be in compliance with the state law and requesting a SMART review made sense. He said he felt this was an equitable solution to the Broker of Record issue. He said, though, he was concerned that the City get the best person possible to do this review. Commissioner Michael Lenz clarified that the SMART review would look at the City purchasing policies. Commissioner Bernard Mirling said purchasing would be reviewed and licensing might be. Commissioner Michael Lenz asked if the City was not in compliance. Commissioner Bernard Mirling said according to 1992 state law, the City must develop policies and procedures that must be approved and reviewed by the Council annually. He said it appears that has not happened. Commissioner Michael Lenz said he had no objection to this motion, although he was still concerned about the Broker of Record issue. He said he would like to know what the state's position on this issue would be. He pointed out there is a certain amount of autonomy within the City government in that departments determine who and what is selected in bids and RFPs and they are only funneled through the Accounts Department. Commissioner Bernard Mirling said there should be clear specifications in the Accounts Department but agreed there would likely be some exceptions. He said he simply wanted the state to review the City's practices. He said there would be room in the policies and procedures for individual departments to contribute on how things will function. He said he was considering establishing a committee with representatives from all departments to discuss this issue. He said he would come back to the Council at a later date with more detail. Commissioner Thomas Curley asked what triggered this proposed review. Commissioner Bernard Mirling said he had simply been reviewing policies and procedures and found that they seem to be outdated. Ayes all. Award of Bid - Tool Carrier Upon the recommendation of the Department of Public Works, Commissioner Bernard Mirling moved and Commissioner Thomas McTygue seconded to award the bid for the tool carrier to Southworth Milton of Albany in the total amount of $106,100 (lowest bidder). Ayes: four; Nays: one (Commissioner Michael Lenz). Motion carried. FINANCE DEPARTMENT Commissioner Michael Lenz welcomed Peter Knutson, Boy Scout, who is working on his merit badge. Payroll Commissioner Michael Lenz moved and Commissioner Thomas Curley seconded to approve the following payrolls: January 7, 2000 - $281,594.19 and January 14, 2000 - $263,225.44 . Ayes all. Warrants Commissioner Michael Lenz moved and Mayor Kenneth Klotz seconded for the approval and payment of the 4DEC99 warrant #2 through #23 as follows: General Fund $ 79,436.03 City Center Authority 3,341.49 Water Fund 83,364.65 Sewer Fund 9,089.84 Capital Projects Fund 21,979.92 Special Assessment District - 0 - Trust Fund - 0 - Debt Service - 0 - Community Development 123.15 TOTAL $197,335.08 and the 2JAN20 warrant #2 through #13as follows: General Fund $ 73,764.81 City Center Authority 19,127.00 Water Fund 2,993.24 Sewer Fund 132.18 Capital Projects Fund - 0 - Special Assessment District - 0 - Trust Fund 15,092.50 Debt Service - 0 - Community Development 12,136.63 TOTAL $ 123,246.36 and the MC990112 warrant #2 through #4 as follows: General Fund $ 15,108.83 City Center Authority - 0 - Water Fund 183.78 Sewer Fund 120.00 Capital Projects Fund - 0 - Special Assessment District - 0 - Trust Fund - 0 - Debt Service - 0 - Community Development - 0 - TOTAL $ 15,412.61 and the MC200112 warrant #2 as follows: General Fund $ 4,365.22 City Center Authority - 0 - Water Fund 1,850.00 Sewer Fund 1,850.00 Capital Projects Fund - 0 - Special Assessment District - 0 - Trust Fund - 0 - Debt Service - 0 - Community Development - 0 - TOTAL $ 8,065.22 Ayes all. Budget Amendments Commissioner Michael Lenz moved and Mayor Kenneth Klotz seconded to approve the budget amendments as presented (Attachment A). Ayes all. Broker of Record Commissioner Michael Lenz read into the record letters recently received from three health insurance agencies as follows: Dear Linda: This letter is a follow-up to our conversation regarding community rating. The insurance plan Empire provides to the City is an HMO program and is community rated. As with any community-rated product, the rates are filed with the New York Sate Insurance Department. These rates cannot be negotiated, since Empire is required by law to ensure that all community rated groups with equivalent benefits are being charged the same rate. The only alternative is to modify the benefit design in order to reduce the rates. Additionally, I understand that the city is establishing a committee to review health insurance during the upcoming year. If there is any way I can assist in this process, please feel free to give me a call at (518)367-5494. Best regards, Jason O'Malley, Account Manager, EHC Benefits Agency. dated January 14, 2000 TO: Linda Curley; FROM: Lisa Lagon; DATE: January 10, 2000; RE: Community Rates Linda, thank you for your inquiry today. I would like to verify that the contract held between the City of Saratoga Springs and Blue Shield of Northeastern New York is a Community Rated contract. You were correct in that Community Rated products are not eligible for any negotiation. Blue Shield may only charge the rates approved by the New York State Insurance Department for that product design for any given time period. If you have any further questions feel free to give me a call at (518)453-5541. Dear Commissioner: As per your request, this letter is intended to serve as an explanation of how your MVP rates are set from year to year. MVP is a fully community rated health plan and has been since starting in 1983. MVP is required to file a rate for every benefit. If MVP files for a rate increase, that increase is subject to review and final approval by the NYS Department of Insurance. Health insurance rate increases are based on a number of factors such as: hospital costs; physician charges; pharmacy costs; and administrative overhead. The final rate reflects the overall cost of MPV's entire membership of "community" of enrollees. Hence the term, community rating. The rates charged by MVP are the same for all employer groups regardless of an individual employer's size, age of workers, general mix, or past medical expenses. The only variable is the benefit structure. All groups having the same benefits will be charged the same rate for any similar time frame. The health insurance brokers for the City of Saratoga, both past and present, had and continue to have no influence over rate increases. The low rate increases you experienced during the mid-90's were a fact of high competition among carriers and low medical inflation. The higher increases the past two years are due to rising health care costs and financial pressures to avoid situations like Kaiser Permanente found themselves in this past year. I hope this information helps to clarify how MVP rates are established each year for the City of Saratoga Springs. Please feel free to call me with any questions at (518) 388-2355. Sincerely, Scott G. Ellsworth, VP of Sales, MVP Health Plan. Commissioner Michael Lenz said a health insurance committee had been established to deal with the rising costs of health insurance. He said while the Broker of Record issue will eventually come to a decision, it was important that the committee move forward. He asked that all Council members work with the health insurance committee. Mayor Kenneth Klotz said he did not want to re-engage the Broker of Record issue at this time. He said he disagreed with the letters by saying that the Broker of Record can make a difference. Commissioner Michael Lenz reminded Council members that there are unions to negotiate with when it comes to changes in health care. Mayor Kenneth Klotz said he wanted to get the best possible insurance at the best possible price. Commissioner Thomas Curley said the Council needs to remember that any changes made to health insurance needs to be negotiated with and agreed to by the unions. Commissioner Thomas McTygue said we should look at the number of years working with the City and retirement where employees walk out of here with full health insurance benefits. He said it was a low number and it should be addressed. He said that we could probably save a considerable amount of money if we readjust that. DEPARTMENT OF PUBLIC WORKS Permission for Mayor to sign Medworks Contract (00-021) Commissioner Thomas McTygue moved and Commissioner Bernard Mirling seconded to authorize the Mayor to sign the contract with Medworks for testing for City CDL holders. He said this test is mandated by the state. He said the cost of the contract is $370 and allows for two drugs test per month. Ayes all. Waive of Bid - Vellano Brothers Commissioner Thomas McTygue moved and Commissioner Thomas Curley seconded to ratify the previous approval by memo for the waive of bid to Vellano Brothers in the amount of $2,270 for a water tapping machine. Ayes all. Waive of Bid - Lakeshore Sign Company Commissioner Thomas McTygue moved and Mayor Kenneth Klotz seconded to waive the bid to Lakeshore Sign Company in the amount of $1,497.73 for 22 Victorian Street signs. He said the money was within the CHIPS budget. Ayes all. Accept Street - Snowplowing Only (00-022) Commissioner Thomas McTygue announced that Care Lane was accepted for snowplowing only. Discussion - Green Acres Commissioner Thomas McTygue informed Council members that he had been contacted by the Green Acres Association and they have asked the City to extend the City water line to this area. He said the Green Acres Association will pay $64,450 for that extension and the City had already received that check. He noted that homeowners in this area will also pay the required tapping fee. Discussion - Excelsior Avenue Sewer