City Council

City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM TUESDAY, NOVEMBER 20, 2007 5:45 P.M. PRESENT: Valerie Keehn, Mayor Commissioner John Franck, Accounts Commissioner Ron Kim, DPS Commissioner Matthew McCabe, Finance Commissioner Thomas McTygue, DPW PRESENT: Supervisor Joanne Yepsen Supervisor Cheryl Keyrouze STAFF PRESENT: Lynn Bachner, Deputy Commissioner, Finance Michele Boxley, Deputy Commissioner, Accounts James Brophy, Deputy Commissioner, DPW Michael Englert, City Attorney Eileen Finneran, Deputy Mayor PRESENTATION - 2006 Financial Report Commissioner Matthew McCabe introduced Christine Gillmett-Brown, Director of Finance and Will Reynolds, Bollam, Sheedy & Torani to review the 2006 Financial Report. Will Reynolds said the City’s financial statements were audited according to the governmental standards. In their opinion, the City’s records are in conformance with generally accepted accounting principles. A new requirement a few years ago requires that government wide financial statements combine all of the City’s activities (page 4 of the financial report). Also included are some charts. Page 12 is the financial statement of net assets which shows two types of activities – governmental and business. The City has approximately $53 million in governmental assets and $14 million in business type assets. Liabilities are approximately $35 million in governmental assets and $4 million in business type assets leaving net assets of $17 million in governmental activities and $9 million in business type assets. The net assets are comprised of fixed assets less any debt related to those assets and those restricted dollars for capital improvements. The City’s unrestricted balance is negative $4 million. Page 13 is a summary of activities showing how the negative $4 million balance was realized. He explained that the net cost of the governmental activities was approximately $32 million and the net cost of the business type activities was approximately $1.6 million. The net change in assets is negative $3.7 million in governmental and approximately negative $400,000 in business type activity which results in approximately negative $4 million in net assets. Page 14 shows the traditional approach which is more significant because it tells the City the net assets on a combined basis. Page 14: the unappropriated fund balance of $166,00 is a small number. It could be used for tax stabilization or equipment purchases, however, it is not a lot of money. The hope is to increase that number this year, however, the City has a lot of capital needs. Page 15 also shows the reconciliation from modified accrual to full accrual which recognizes all potential liabilities and assets. The difference between the $9 million and $17 million is the capital assets and long term debt. While the numbers are significantly different, the bottom line is not that much different. Page 16 is on the modified accrual basis. Page 17 shows the same reconciliation for the income statement on both modified and full accrual. Page 18 shows the comparison budgets (adopted, final revised and actual). Page 21 shows the water, sewer and City Center Authority revenues, assets and expenses. The water budget decreased by $857,000, the sewer budget decreased by $267,000 and the City Center Authority budget had an increase of $679,000. Page 22 shows the cash flow of fiduciary funds. Page 25 talks about the governmental accounting methods. Page 30 shows the accounting polices by area. Page 34 shows the receivables by fund. Page 35 shows the capital assets by fund. Page 37 shows depreciation. Page 38 summarizes the City’s indebtedness including each bond, summary information, due date, maturity date and outstanding balance. Page 40 summarizes general obligation bonds by year for the first five years. Commissioner John Franck asked why there was such a large increase in 2012. Will Reynolds said it includes 1 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 the first five year totals. Page 40 also summarizes other long term liabilities such as sick, comp time and health insurance coverage for retirees. He said those are real numbers which is an area of concern. Health insurance for retirees is a future liability. Page 45 summarizes the prior year adjustments. Christine Gillmett- Brown said adjustments were made in connection with the parking ticket revenue accrual. She said it will now be recognized on a cash basis. Will Reynolds noted that one other change was that certain capital projects were shown in the governmental funds that should have been noted in the water fund. Page 46 summarizes the four different accounting standards that were recently issued that apply to the City. None of these are required to be implemented by the City. First, the post retirement benefit – which is the cost of having an employee includes the cost of what the City will pay in the future when the employee is retired. The accounting method states that the City should match the current figures with the future figures and their total compensation should be recognized. He said this will be a big number for everyone. He said the only way to accurately develop these numbers is to engage an actuary which is an expensive exercise. Commissioner John Franck asked if the City will amortize. Will Reynolds said the initial impact to the City will be severe, but there is a catch up period allowed. Christine Gillmett-Brown said funding for an actuary was included in the 2008 budget. Commissioner John Franck said the amount could be more than a million dollars. Christine Gillmett-Brown said that was true, however, under the New York State legislation, there is no legal mechanism to fund this long term debt; therefore, even if the City wanted to set this money aside, there was no legal way to do so. The City will continue to budget on an annual basis, the annual costs. In 2007 that number was $1.5 million for retirees. Commissioner John Franck asked if the State would mandate that the numbers for this expense be included in the budget. Will Reynolds said he was unsure; however, because it would not be to the state’s benefit, he did not believe it would be mandated. Commissioner John Franck clarified that the numbers would need to be shown for financial purposes, however, there will be no mechanism to pay the expense. Will Reynolds agreed. He said this City and many others will go from a positive fund balance to a rather large negative fund balance. He said the cost for each employee will go up on the financial statement, however, it will not go up on a cash basis. Christine Gillmett-Brown noted though that nearly all municipalities will be in the same boat in that no one has the ability to fund this large expense, so many will show a negative balance. She said there are some municipalities that are choosing to not implement this method of accounting. Will Reynolds said the City will implement this method. Christine Gillmett-Brown said the Finance Department has budgeted $10,000 for the actuary. Will Reynolds then reviewed the single audit report. He said the City is required to have a single audit because of its federal expenditures. Most of the City’s expenses under this category are under the Community Development program. Page 3 summarizes the internal controls, financial reporting and compliance measures. He said they are looking for and would report any material weaknesses or significant deficiencies. None were found. Page 5 is the report that relates to the major federal programs and internal controls. There were no deficiencies. Page 6 relates to expenditures. Page 7 is a summary of findings – no material or significant deficiencies were found. Will Reynolds then reviewed the document with the “matters to be communicated/comments” with Council members. This documents talks about parking ticket revenue, the need to recognize all of the City’s assets including infrastructure and the additional benefits provided under the 384 program which is $3 million over 10 years. He said this document also notes that they have had good experiences with management with no disagreements. He said that quite the contrary, the City always cooperates to the fullest extent. The last document is the management letter to the Council. This document holds much less weight, however, there are some matters that they believe the City should consider addressing. One of those areas is the MUNIS system and reporting of capital assets. He said they should be reported at the historical cost and not the current value. There needs to be some improvements in that area. Also City policies should be reviewed on the fixed assets in determining the full costs, staff needs to be trained, consistency on physical counts, etc. He said they found that while acquisition generally gets recorded, disposal does not always get recorded. They have provided a number of suggestions on reporting fraud and misconduct. There should be an annual screening of vendor files. The City’s Code of Conduct does not refer to internet use. There should be employee evaluations. He said once they have identified these areas, they will remain in their management letter until the City remedies the situation or tells them that there is no cost benefit to making the improvement. Mayor Valerie Keehn asked about the awareness of fraud and the implementation of an anonymous reporting system. She asked why if the City had a policy requiring employees to report misconduct, then why did the City need an anonymous reporting system. Will Reynolds said it could be a tip from someone outside of the City. He said that tip hotlines also tend to bring forward sexual harassment issues. Those tips could have a financial impact on the City though. Mayor Valerie Keehn noted that the City has an Ethics Board that could take anonymous reports, however, the Ethics Board has no authority to discipline. Will Reynolds noted that if the City is aware of an issue and then takes no action, then it would be likely that the City’s exposure would be greater. He suggested though that the Ethics Board could be promoted better throughout the city. He also 2 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 noted that there needed to be very thorough documentation of any matters reported which ultimately has a cost to the City. Commissioner John Franck asked if the $4 million loss in 2006 to the City was a true operational loss. Will Reynolds said it is based on full accrual. Commissioner John Franck said the City’s loss was $4 million on full accrual. He asked about the unappropriated fund balance being positive but from a budgeting standpoint what should the goal be. Will Reynolds said that until a few years ago, the state did not allow municipalities to carry a fund balance. He said the rule of thumb is somewhere between 2 and 3 months of operating expenses, which is not very much. Commissioner John Franck asked if the $6.8 million negative balance was due to the fixed assets. Will Reynolds said it has to do with encumbrances – having the need to spend, but not yet expended. He said the restricted money is mostly bonded money. Christine Gillmett-Brown said that most of the grants are reimbursable. She said that between 5 and 10 percent is a good number to have in reserve per FGOA guidance. Commissioner Matthew McCabe thanked Will Reynolds for this report. PUBLIC HEARINGS 2008 Comprehensive Budget Mayor Valerie Keehn opened the public hearing on the 2008 Comprehensive Budget. John Kraus, 227 Grand Avenue, said this had been a difficult budget process. He asked that the Council consider sharing the $500,000, 50/50 with the taxpayers for the capital budget. He said the cost sharing would reduce the tax rate from $5.36 to $5.28 representing a 6.9 percent decrease. There being no one else wishing to speak, Mayor Valerie Keehn closed the public hearing on the budget for this evening, noting that it would remain open until the budget was adopted. CALL TO ORDER Mayor Valerie Keehn called the City Council meeting to order at 7:20 p.m. EXECUTIVE SESSION Litigation Mayor Valerie Keehn said the Council went into executive session at 5:35 p.m. to discussion litigation matters. No action was taken and the executive session was adjourned at 6:05 p.m. PUBLIC COMMENT PERIOD Mayor Valerie Keehn opened the first public comment period. David Bronner, 5 Royal Henley Court, said at the last Council meeting he expressed his concern on the cost of pursuing the permit for Saratoga Lake. He stated that it was a burden on the taxpayers. He said that apparently it is not a burden on the taxpayers but rather is paid for through user fees that are collected from developers for hooking into the City’s water system. That cost is $3,000 per hook up. He said regardless if it is taxpayer money or it is generated from another revenue stream, it is still City money and the City should not be spending more on this project. He said that Commissioner-elect Ken Ivins has also expressed his concerns on spending more money on this project. Commissioner-elect Ken Ivins also expressed his concern on the way that the Spencers have been treated. David Bronner said it was a member of the Spencer family and not the entire family that tied into the City’s water line illegally. He said the comments made at the last meeting were uncalled for. It was simply a way to denigrate the Spencer family. There being no one else wishing to speak, Mayor Valerie Keehn closed the first public comment period. CONSENT AGENDA 3 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Mayor Valerie Keehn moved and Commissioner Matthew McCabe seconded to approve the consent agenda as presented. 1. Approval of Minutes – November 1 & 7, 2007 2. Approval of Payrolls -- 11/9/07 $401,494.66 11/16/07 $431,922.25 3. Approval of Warrants -- Mid MC1NOV07 $60,266.18 General 2NOV07 $683,730.88 Ayes all. MAYOR’S DEPARTMENT National Family Week – Proclamation Mayor Valerie Keehn read the following proclamation: PROCLAMATION CITY OF SARATOGA SPRINGS Whereas, one of our nation’s greatest and enduring resources is the spirit of strength, love and compassion found in the American family. It is beyond question that caring families raise happier, more confident children who grow up to become better citizens, and Whereas, this year, during the week of November 19 – 25, the Northeast Parent and Child Society will join with the nationwide efforts of the Alliance for Children and Family Week. This annual event, officially recognized by 42 states, recognizes the special place families occupy in our nation and the many contributions they make to our lives, our well-being, and our future, Now, therefore, I, Valerie Keehn, Mayor of the City of Saratoga Springs, am pleased to proclaim the week of November 18 – 24, 2006, as National Family Week in the City of Saratoga Springs. Ethics Board Appointment Mayor Valerie Keehn withdrew this item from discussion. Zoning Text Amendment – Referral to the Planning Board Brad Birge, Planning and Economic Development Coordinator, said this is a minor text amendment to the zoning ordinance to identify the Gideon Putnam cemetery as an historic landmark. Mayor Valerie Keehn moved and Commissioner John Franck seconded to accept this proposed zoning text amendment for study and to refer it to the Planning Board for an advisory opinion. Ayes all. Siano vs. Zoning Board – Payment of Court Costs Tony Izzo said this is concerning an Article 78 case against the Zoning Board of Appeals. The ZBA lost the case and the courts are now requiring that the City pay the petitioner’s filing fees. Mayor Valerie Keehn moved and Commissioner John Franck seconded to approve the payment of $693.59 for court costs in the Siano vs. ZBA lawsuit with the funds coming from the City Attorney ’s budget . Ayes all. Erin Dreyer Defense Costs per Court Order Mayor Valerie Keehn moved and Commissioner Ron Kim seconded to approve payment to Gleason and Dunn in the amount of $34,713.83 as payment of Erin Dreyer ’s legal defense in Dreyer vs. City of Saratoga Springs as so ordered by the courts. This is payment for the bills received to date. The funds are to come from the City Attorney ’s budget . Ayes all. Contractor Services Agreement Addendum 4 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Mayor Valerie Keehn moved and Commissioner Thomas McTygue seconded to authorize the Mayor to sign the addendum to the Chris Watt agreement to cover cost in “disciplinary matters ” for the Department of Public Works in an amount not to exceed $1,000. The money is to come from the Human Resources budget. Ayes all. ACCOUNTS DEPARTMENT End of Year Archive Procedures Commissioner John Franck said that the end of each year is a busy time for the Records Management Office.It is the time that active records are archived and transferred to inactive storage and records that have satisfied the state mandated retention requirements are written up and disposed. The sight of numerous bags of shredding brings out many rumors and comments from bystanders, particularly after a local election. Nancy Wagner explained the rules, regulations and procedures involved in the annual disposition of city records. Nancy Wagner said that the City’s Records Management Program is governed by the New York State Local Government Records Law. The law requires each local government to designate one official as the records management officer. Our city charter states that the Accounts Office/City Clerk is the record keeper for the City so the position of the Commissioner of Accounts was designated by the City Council in 1988 as the City’s Records Management Officer. It is the responsibility of every local officer to maintain records to document the transaction of public business and the services and programs, to dispose records only in accordance with legal requirements and pass on any records needed for the continuing conduct of business in the office. The law states that no records can be disposed, sold or removed unless the local government adopts the appropriate Records Retention and Disposition Schedule developed by the New York State Department of Education. Records can be disposed of only when they have met minimum retention requirements. The City has had a program in place for the annual disposition of city records for 17 years. When disposing of records, detailed dispositions sheets are maintained. Over the next several weeks, the Records Management Office will shred any document that meets the minimum retention requires and those documents that include an address, phone number, social security number, names, or any personal or private information and fiscal information. The City annually disposes an average of 200 cubic feet. Commissioner John Franck thanked Nancy Wagner for this report. Contract for Historical Records Survey Commissioner John Franck moved and Commissioner Matthew McCabe seconded to authorize the Mayor to sign a contract with Mr. James Corsaro, Archivist and consultant of Troy, New York, to conduct a preservation/needs assessment survey of the City Historian Archives and community records in the amount of $4,960. This project is fully funded by the New York State Archives with no match or expenses by the city required. The contract has been approved by the City Attorney and the Risk and Safety Manager and has met purchasing guidelines. Ayes all. Set public hearing: Comprehensive Plan Amendment -- Boyea/Mitchell/Levine/DeRusso/Perrino, Route 50 South & Set public hearing: Zoning Map Amendment – Boyea/Mitchell/Levine/DeRusso/ Perrino, Route 50 South Commissioner John Franck said that pursuant to the City Council’s request of August 8, 2007, the Planning Board reviewed the proposed comprehensive plan map amendment and the zoning map amendment on the Boyea/Mitchell/Levine/DeRusso/Perrino parcel at Route 50 South. The Planning Board believed the requested comprehensive plan map amendment from Conservation Development District to COMM-2 – Motorist Oriented Commercial and the zoning map amendment from Rural Residential-1 (RR-1) to Highway General Business District (HGBD) are inconsistent with the City’s adopted long range gateways and open space policies as set forth in various adopted policy documents. Additionally, the Planning Board recommends that the City Council examine the feasibility of purchasing the parcels for open space. By a 7-0 vote on October 3, the Planning Board unanimously issued an unfavorable advisory opinion recommending the Council not support the requested comprehensive plan map amendment and the zoning map amendment because they are inconsistent with the signature gateway, the rural road corridor and the Saratoga County Green Natural Systems. 5 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Commissioner John Franck proposed to set a public hearing on the comprehensive plan map amendment from Conservation Development District to COMM-2 – Motorist Oriented Commercial at 6:40 p.m. on January 15. He further proposed to set a public hearing on the zoning map amendment from Rural Residential-1 to Highway General Business District (HGBD) at 6:50 p.m. on January 15. Council members agreed. Mayor Valerie Keehn asked why wait until January 15. Commissioner John Franck said there is a 30 day time frame required. Brad Birge, Director Planning & Economic Development, agreed. Commissioner John Franck also noted that if set for December 4, there was not enough time to get the required notices in the paper and to the nearby property owners. He said he also selected January 15 because of the uncertainty of the first Council meeting in January. The upcoming holiday season was also considered as a reason to wait until January. FINANCE DEPARTMENT Budget Transfers – Payroll, Social Security, Health Insurance, Insurance, Regular Commissioner Matthew McCabe moved and Commissioner John Franck seconded to approve the budget transfers as distributed. They have all met the transfer guidelines and the availability of funds is certified (Attachment A). Ayes all. Budget Transfers – City Center Contingency Commissioner Matthew McCabe moved and Commissioner John Franck seconded to approve the budget transfers for the City Center as distributed. They have all met the transfer guidelines and the availability of funds is certified (Attachment B). Commissioner Matthew McCabe noted that these transfers are for the City Center Authority and have nothing to do with the City’s general fund. There remains $16,463.50 in the City Center contingency fund. Ayes all. Budget Amendments Commissioner Matthew McCabe moved and Commissioner John Franck seconded to approve the budget amendments as previously distributed. The budget remains in balance, the amendments have met the guidelines and the availability of funds is hereby certified (Attachment C). Ayes all. Sales Tax Revenue Commissioner Matthew McCabe said that as of the most current distribution of sales tax (third quarter) the City has taken in $6,424,195.34 which is almost the same as the third quarter 2006. This is 69 percent of the budgeted amount for 2007. Last year at this time we had collected 81 percent of the budgeted amount. In 2007,the City budgeted sales tax at $9,366,638. This is about 26 percent of the general fund revenue. As previously reported, the August sales tax revenues was lower than 2006 ($414,944.16 in 2007 compared with $630,106.87 in 2006). With increased gas prices and the holiday season, he hoped to see an increase, but he did not believe that the City would reach the budgeted amounts. The City’s actual sales tax received in 2006 was $8,317,465 which was $551,000 more than received in 2005 and $359,000 more than budgeted in 2006. In a letter from the County they state that the distribution for November is 2.38 percent lower than the same period from one year ago, although the total sales tax is 1.63 percent higher than 2006 year to date. Mayor Valerie Keehn asked if the new Kohl’s department store had been included in the estimated sales tax revenue for this year. Commissioner Matthew McCabe said yes, along with several other businesses. Sales Tax Exemption – Year- Round Commissioner Matthew McCabe moved and Commissioner John Franck seconded that the City not participate in the state’s year round exemption program on clothing and footwear costing less than $110 and that the City take no action at this time. Ayes all. Third Quarter Report 6 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Commissioner Matthew McCabe said the third quarter report was submitted to the City Clerk’s Office on November 19 and is available for review. The second quarter data is as follows: all funds – revenues collected 70.4 percent, expenditures 57.2 percent; general fund revenues collect 70.6 percent, expenditures 64.5 percent; water fund – revenues collected 34.3 percent, expenditures 63.9 percent and sewer fund – revenues collected 43.2 percent and expenditures 72.5 percent. Finance Policy and Procedure Manual Commissioner Matthew McCabe submitted the Finance Policy and Procedure Manual which was originally adopted at the July 5, 2005, Council meeting. Per the Charter, it was reviewed and updated by the Finance Dept. Two corrections on the Time Sheet policy were distributed to the Council today. Health Care Contract Rate Sheet MVP Health Plan Inc. – New York Medicare Gold Commissioner Matthew McCabe moved and Commissioner John Franck seconded to authorize the Mayor to sign the 2008 health care rate contract for MVP Health Plan, Inc., - New York Medicare Gold. This has been approved by the Risk & Safety Manage and the City Attorney. This is a program for Medicare eligible retirees. It is optional and is in addition to the two programs currently being offered by MVP and CDHP. Ayes all. 2008 Budget Commissioner Matthew McCabe said the budget process has been difficult, however, he believed that he had a budget that there could be a consensus on, although he did not believe there would be a unanimous vote. He said that to do nothing in the capital program would be highly irresponsible of him and the Council. The City needs to address the capital project needs and the renovation of City Hall and it needs to do so while the City is in a strong financial position. The City also needs to address the drainage matters in the southern district of the City. The capital budget is more than just the DPS facility. He has retained the proposed $8 million in the capital budget for the potential bonding by the next Council for the DPS facility and/or renovation of City Hall. He will not honor the request by John Kraus for the 50/50 split. Therefore, Commissio ner Matthew McCabe moved and Commissioner Ron Kim seconded to approve, as the City’s 2008 Adopted Budget, the 2008 Preliminary Budget, all funds, presented tonight. This includes $500,000 from state aid based on VLT revenue budgeted in the debt service fund as revenue to offset expenses for a new municipal facility and/or rehabilitation of City Hall in connection with the police facility needs. In so moving, he asked that the Council approve the revised proposed capital program as distributed this evening and at the November 1, 7 & 15 C ouncil meetings. Commissioner John Franck asked if this was the same motion as presented at the last meeting. Commissioner Matthew McCabe said yes. Commissioner John Franck said there are many things in the budget that the Council cannot control, such as gas prices, the drop in the housing market, the 2008 track meet, etc. He said he was not sure the City would continue to receive property taxes from the track parcel. The proposed MOU clearly states that the land is state property and there is no guarantee that taxes will continue to be paid. There is no guarantee that the VLT revenues which are now nearly 10 percent of the City’s budget will continue from year to year. If the City loses the VLT revenue, taxes would go up by nearly 30 percent. The City Center is waiting to hear about the proposed $6 million in state aid. He said locally, the City does not have control over 90 percent the budget. He believed that the departments were operating with bare bones budget. He commended Commissioner Matthew McCabe for taking control of the budget and saying no to some items. That being said, he did not support a budget with $8 million for the DPS facility. He noted that the rfps had not yet come in and once this project is funded, the Council was guaranteeing a double digit increase for 2009. There needs to be a four-fifths vote to bond and he was not sure that was attainable with the new Council. There has been much discussion that there is $2 million extra in revenues. He said there might be something extra, however, it would not be $2 million. He noted that the auditor clearly stated tonight that the City has a $4 million loss in true accounting numbers. The unappropriated funds increased, but not by a significant amount. He said he would not support this motion. 7 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Mayor Valerie Keehn said that while Commissioner John Franck made some good points, the majority of the $4 million deficit was due to the water and sewer budgets. She has continually supported a new DPS facility and would do so tonight. She said it was time to move forward and $8 million was enough money to get the City where it needs to be. Commissioner Ron Kim said the DPS facility matter has been a long journey. It began in 1976 when the first feasibility was done and a new police station was recommended for the then 45 police officers. Seven reports later, we are still at the same conclusion. The 2004 study recommended a 27,000 square foot facility at $220 per square foot estimated to be between $6 and $7 million. The most recent feasibility study is 32,000 square feet at $360 per square foot. He said that with the recent increase in oil, it is possible that cost could go higher. He said the bottom line is that the City has simply waited too long. As for renovating City Hall, they were told in 2005 that the floor in the dispatcher’s office needed to be addressed, there is asbestos in Captain Biss’ office. The floor went out to bid and the City received no responses. The City estimated the cost at $10,000 but now believes the price will be higher. There is great difficulty in renovating the space due to the 24/7 operation. They are already overcrowded with people and storage. The storage of boxes on top of the generator caused the recent fire. The Department of Corrections recently toured the police department and they expressed great concern with the 1860 era jails. They are concerned that during a fire, the locks on those cells may not work, therefore, they must now sit a police officer at that jail cells to watch prisoners. He said that he reluctantly supports this motion. The rfps are due tomorrow at noon and he would like to see them. He did not agree with placing $500,000 in the reserve fund which increases taxes more. These are extraordinary circumstances. He reluctantly supported this motion. Commissioner Matthew McCabe said that the VLT money is not in a reserve account. The next Council will make the decisions on a DPS facility. There has been a great deal of discussion on bonding which has resulted in good conversations. It the next Council decides not to bond the project, the money could be used at the Council’s discretion. It could be used to stabilize the tax rate or to pay down the debt service. He has not been happy with the public relations campaign on getting this project approved but believed that the project needed to be done and it was less expensive to do it now rather than waiting. Commissioner Matthew McCabe said he would be available every day next week at 8:00 a.m. to discuss the budget with anyone who wanted. Ayes: three - Commissioners Matthew McCabe , Ron Kim and Mayor Valerie Keehn; Nays: two – Commissioner John Franck and Thomas McTygue. Motion carried. DEPARTMENT OF PUBLIC WORKS Koester Association Commissioner Thomas McTygue moved and Commissioner Matthew McCabe seconded to authoriz e the Mayor to sign two contracts with Koester Associates for training and maintenance of the UV System at the Water Treatment Plant. The first contract is for $3,191 for maintenance and check up of the system. The second contract is for $6,450 for three months of training for water plant personnel to operate and maintain the system. The funds will come from the water budget. Ayes all. Accept Iris Drive Commissioner Thomas McTygue moved and Commissioner John Franck seconded to accept Iris Drive. The contract has met all of the terms and conditions pertaining to street acceptance. Ayes all. Letter of Credit Commissioner Thomas McTygue said he received a memo from Michael Englert, City Attorney, informing him that Michael Englert had collected on a letter of credit for the Villages at Saratoga in the amount of $93,500. The money has been put into a trust account and will be used next year to bring the streets up to code. Leaf Pick up 8 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Commissioner Thomas McTygue said the DPW has made three entire sweeps of the City for leaf pick up. Next Monday and Tuesday all of the DPW crews will be in Geyser Crest one final time. Local Legislation Stormwater and Drainage Program Commissioner Thomas McTygue requested that a public hearing be set on the local legislation for stormwater and drainage issues on December 4 at 6:55 p.m. Council members agreed. Tony Izzo said DEC has provided the City with sample legislation. If the City fails to enact the legislation, it could face audits and/or fines. Johnson Controls Commissioner Thomas McTygue moved and Commissioner Matthew McCabe seconded to approve that the technical language , as called for by Michael Englert, be added to the Johnson Control Contract . Ayes all. DEPARTMENT OF PUBLIC SAFETY Capital Building Reserve Fund Commissioner Ron Kim withdrew this item from discussion. Capital Budget Amendment – Set Public Hearing Commissioner Ron Kim withdrew this item from discussion. SUPERVISORS Joanne Yepsen November Resolutions: The Board of Supervisors met today and reported that the $40 million expansion of the sewer system will begin the design phase this month and plant start up estimated in August 2009. Commissioner Thomas McTygue asked how it would be paid for. Supervisor Joanne Yepsen said it would be bonded and there is some reserve funding. Commissioner Thomas McTygue said the main reason for this expansion is the new chip plant. Supervisor Joanne Yepsen said the chip plant was not part of these discussions. Commissioner Thomas McTygue noted that $28 million loan to the water fund. Mortgage Tax: Supervisor Joanne Yepsen said the City’s share of the mortgage tax is $1,040,816. Mayor Valerie Keehn asked how the mortgage tax numbers compared with previous numbers. Deputy Commissioner Lynn Bachner said that the 2007 budget projected $1,724,000 and the City has achieved that number. The 2008 numbers are more conservative. Resolutions: Supervisor Joanne Yepsen said that the County passed a resolution today providing for the advance of $6 million to the water authority for the expenses incurred to date. She said that upon her request the motion was amended to include an interest rate and deadlines for repayment. They also approved a resolution for the design of a new DPS facility. A public hearing was set for November 27 at 5:30 p.m. on the budget. It is a $230 million budget. The grant for the open space program was increased from $500,000 to $750,000. The Board of Supervisors has also established a new Personnel Committee and she has requested to be placed on that committee. Cheryl Keyrouze Resolutions: Supervisor Cheryl Keyrouze said the resolution passed by the Board of Supervisors to advance $6 million to the water authority and to be repaid from the proceeds of the bond, was approved today. The motion was passed after Supervisor Yepsen requested an amendment to include a guarantee for 120 day repayment and with 4 percent interest. She did not support this motion. 9 of 10 City of Saratoga Springs City Council Meeting Minutes Tuesday, November 20, 2007 Citizens Transportation Committee: Supervisor Cheryl Keyrouze said that transportation was an important issue when she took office. When she was elected, she formed a committee that has been meeting since last summer. On Monday, November 26, at 7:00 p.m., there will be a presentation at the library on all of the research that has been done over the last year and a half. She encouraged everyone to attend. PUBLIC COMMENT PERIOD Mayor Valerie Keehn opened the second public comment period. There being no one wishing to speak, Mayor Valerie Keehn closed the second public comment period. ADJOURNMENT Mayor Valerie Keehn moved and Commissioner Ron Kim seconded to adjourn the meeting at 8:40 p.m. Ayes all. There being no further business, Mayor Valerie Keehn adjourned the meeting at 8:40 p.m. Respectfully submitted, Kathy Moran Clerk Approved: 10 of 10