City Council

CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM TUESDAY, NOVEMBER 25, 2008 6:30 P.M. PRESENT: Scott Johnson, Mayor John Franck, Commissioner of Accounts Ken Ivins, Commissioner of Finance Ron Kim, Commissioner of DPS Anthony Scirocco, Commissioner of DPW STAFF PRESENT: Michele Boxley, Deputy Commissioner, Accounts Pat Design, Deputy Commissioner, DPW Eileen Finneran, Deputy Commissioner, DPS Kate Jarosh, Deputy Commissioner, Finance Shauna Sutton, Deputy Mayor Joe Scala, City Attorney RECORDING OF PROCEEDING The proceedings of this meeting were taped for the benefit of the secretary. Because the minutes are not a verbatim record of the proceedings, the minutes are not a word-for-word transcript. CALL TO ORDER Mayor Johnson called the meeting to order at 6:35 p.m. Mayor Johnson advised there would be a variation in the order of the agenda. He turned the floor over to Commissioner Ivins to update everyone on the amended changes. Commissioner Ivins advised there were spreadsheets available for the public. There were a few last minute changes, one of which is significant. It is going to be a tough fiscal year. He is still leery about revenue sources so we have to keep a tight line on things. The 2010 budget starts now. The telephone operator position is being kept in for the time being. He stated he misspoke yesterday about a position in Civil Service, he gave the wrong title. What he meant was a Senior Clerk in Civil Service. Part of that line is funded from the school district; there will be a vacancy there and the position will be filled part way into the year with changes to that position. He had a resolution on the agenda for a hiring freeze but will be pulling this item to get the wording corrected. Commissioner Ivins stated he is proposing a 0% tax increase. To make this happen, they are pulling $648,887.29 out of the contingency line. There was over $787,000 in there. PUBLIC COMMENT PERIOD Mayor Johnson said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes each according to the rules approved in February of 2004 by the City Council. City Council Meeting 11/25/08 Mayor Johnson opened the public comment period at 6:42 p.m. Lew Benton of 29 Thoroughbred Drive stated for purpose of the public record he is a City employee but is here as a private citizen. Some City employees awoke this morning to find they will be unemployed or without health insurance. That did not need to be. How those whose employment is proposed to be eliminated was selected is subject to speculation. He asked that they do not eliminate the Heritage Area Coordinator title in the Visitor’s Center budget. The new $16,000 part time position is there to buffer against the loss of the programs provided by the incumbent. It also helps drive the appropriations of unemployment benefits in the Mayor’s budget by $10,000. It will also require collateral corresponding reduction in revenue. There could be a net savings of $15,000 - $20,000 including the reductions in the cost of benefits. That is .0004% of the operating budget. He suggested decreasing the tax levy for debt service next year by setting aside $250,000 from the recreation trust fund. This money could be transferred to the general levy without increasing property taxes. This would free up $250,000 to help offset the proposed $483,000 reduction in public work accounts. He assumed many of the reductions will result in lay offs among the labor class. The City received and award letter for $24,000 to install pedestrian improvements along Broadway. This money could be earmarked to a DPW force account and DPW could install the improvements. It is inconceivable that the amount of money being proposed as savings by reducing the jobs cannot be balance against further reductions against other accounts and taking into consideration suggestions such as the ones he offered. David Bronner of 5 Royal Henry Court stated if he were advising the Governor on the VLT revenue, he would say Saratoga Springs is doing well in comparison to other areas. We have been insulated from the mayhem in the fiscal world. The property tax rate is the lowest in NYS; property values have sky-rocketed in the past 10 years. When all is done, he is not sure we will ever get the $1.8 - $1.9 million. Another thing he would look at if he were in Albany is that 2 years ago Saratoga Springs could afford to bond $6.6 million for a recreation center and they haven’t turned the first spade of dirt yet. He stated the Council should be cautious about including VLT money in the budget. Marybeth Delarm of 96 Quevic Drive read the following statement: Tonight I would like to bring to your attention to a few of many points as to why Beaver Pond Subdivision of 85-91 + homes/lots between Geyser Road and Rt. 50 South should not be permitted: o It does not blend with the existing surroundings with homes being planned at values from $350,000 - $800,000. Most of this project lies in the Green Gateway and the City in the Country which our Open Resources and Comprehensive Plan urges us to protect. As you know, the market is down and many affordable homes under $200,000 sit vacant and/or in foreclosure in the immediate project area. This is not an isolated problem. Especially considering the current and ongoing fiscal crisis of the local, State and federal economy, we do not need to further burden our City’s community services, yet further increasing our taxes, nor do we need to further strain our community services, especially when some public works and public safety departments face budget cuts. o I have a map and color legend which I would like to present which was copied for each of you, used as a tool by planners nationwide from the federal government’s Natural Resources Conservation Service. It depicts a web soil survey that lists half of this project site unsuitable to single family dwelling due to wet soils. After some of the neighbors spoke at the last Beaver Pond Subdivision meeting stating that they have enormous expenses and burdens due to flooding in their basements, much of it from development and improper location on soils, and then to have the applicant suggest that just because some homes in the Geyser Crest and surrounding area were built on unsuitable soils is a valid reason for them to build this monstrosity of a project is unconscionable. Two wrong do not make a right. o As you are probably aware, there are high risks of having our City well water contaminated from displaced stormwater, groundwater and runoff, since it sits downgrade from the project. Also a direct impact will be an increase in traffic volumes from approximately 300 more cars. I would like the City to think about the repercussion from a project with so many significant Page 2 of 10 City Council Meeting 11/25/08 environmental impacts, which SEQRA frowns upon, and hence litigation, in light of the City’s financial problems. Kyle York of 59 Railroad Place stated he worked among many of the men and women sitting in the audience tonight. Any hands-on manager knows some people work hard and some don’t. He has had to fire people and never enjoyed a minute of it but had to do it. The heads of the departments here, the Commissioners know their people, responsibilities and time schedules better than anyone can. It seems that it is up to Commissioner Ivins meeting after meeting to throw out numbers and everyone is fighting and waling. You were elected to a job and it is a job that turned out to be tougher than anyone imagined. If each Commissioner would take what you know, the knowledge on the ground and the personalities and those who are delivering and those who aren’t. Please do the right thing, the tough thing, and the hard decision; that’s what you were voted to do and paid to do. Jack Hopkins of Porters Corners stated he works for DPW. The Council doesn’t understand what this will cost you by laying 24 guys off in DPW. They are not jokers, they are all professionals, skilled laborers and workers for DPW. If the sidewalks don’t get shoveled, who gets hollered at – DPW; if police can’t get through, who gets hollered at – DPW; firemen can’t get through, who gets hollered at – DPW. Every time it is always DPW. We don’t have enough as it is. DPW has gone down in manpower by almost 25% since he was hired there. If you lose these guys he will guarantee they will not have an insurance company by summer. There will be lawsuits. If any of them want to hang with anyone in DPW, they can hang with him and he will guarantee they don’t make it 2 hrs. Tom McGraw of 6 Frederick Drive stated he is a DPW employee and president of the union for his unit. It has come to his attention that positions are going to be cut. The City is growing but the workforce isn’t. It is their responsibility to maintain and provide for the taxpayers as the City grows. He takes it personally when Commissioner Ivins throws a number down without considering any other department. Maybe take a little away from each department rather than take a huge sum away from one department. Without this one department, the City will not go especially coming into this winter. Tom McTygue former Commissioner of Public Works City of Saratoga Springs. Tom stated he didn’t come to speak, but rather come to see how things are happening. He stated Commissioner Ivins has a very tough job, and everyone on the City Council has a difficult job. Mr. Bronner made some good comments. We are on an island here. We are very fortunate. What he sees in those numbers is not one public works employee being fired or losing their job except for a clerk or two. The street department budget is up over last year’s street department budget. There was $1,650,000 last year, in these numbers you have $1,800,000. He heard of cuts of 17 employees, cuts of 24 employees; this budget does not cut one City employee – street department or highway department employee. Total the numbers up. With the budget being proposed here tonight, you are not losing one position as far as street and highway is concerned. Kathy Moran of Ballston Spa stated she is a City employee and president of CSEA. She wanted to remind Commissioner McTygue that after he lost the election last year he increased the staff and did not fund it because the budget was already set. He promoted 9 people and hired an additional 5 and left Commissioner Scirocco to make up that difference. Tom McTygue responded that this is a false statement and wanted the record to reflect it. Remija Foy of 95 Oak Street stated this one of the most difficult processes the Council has to go through. She commended Commissioner Ivins for making the observation that the 2010 budget begins now too. This is a true test of your comprehension of your fiduciary responsibility to community. This is not the place for political posturing or campaigning. This is serious business. If there are any cuts to make, they should be across the board. This is a challenge as far as management goes in all departments. You may have to do more with less. This is a challenge to the City employees to put their shoulder to the wheel and help the City through a difficult period. You can’t spend money you don’t have; so you are correct in taking the VLT money out. Take care of business at hand, which is the operating budget for next year. Any other political projects which have been the ‘hot potato’ for the past year need to be set aside until you come up with a tax rate. Those that don’t comprehend their job better seek some advise. Page 3 of 10 City Council Meeting 11/25/08 MAYOR’S DEPARTMENT Nothing at this time. ACCOUNTS DEPARTMENT Nothing at this time. FINANCE DEPARTMENT Discussion and Vote: Adopt 2009 Budget (08-230) Commissioner Ivins moved and Mayor Johnson seconded to amend the comprehensive budget as previously distributed including the changes as of tonight. Commissioner Scirocco stated the proposed budget changes are increasing spending for 2009. There is a telephone operator position in the Mayor’s budget for $61,000, plus 40% with benefits, close to $90,000 for the one position. We spent $88,000 plus $170,000 this year for a new telephone system. Maybe we should look at that position and maybe it shouldn’t be there. The Administrative Assistant position helped out when it came to the putting the lights out to Geyser Park and the soil testing work at the southside recreation field. That position is the foundation for the engineering staff. He doesn’t know why that position was cut. This position is $41,000 and does everything for the engineering department. Without that position, the engineering department can’t function. She has also taken on some of the responsibilities from the position vacated by Lisa Ribis. He got hit by $485,000. He doesn’t know where ex-Commissioner McTygue is coming from, this is Commissioner McTygue’s budget, not his. He is still looking to try to find out where Commissioner Ivins found the cuts. The City got $170,000 this year in regards to a safety policy through Marilyn Rivers that DPW was part of. Those positions will go. We are going to be violating that policy because they need 2 people in the dump trucks to plow. That other person is gone because we are looking at cutting 20 people. Some of the cuts he will go along with, but to take a $483,000 hit is unconscionable for this department to take. It puts the City in jeopardy, it puts the City’s insurance in jeopardy; it puts his department in jeopardy and everyone sitting at the table in jeopardy. He was coming to the table tonight with a 0% tax increase because that’s what he feels the City of Saratoga Springs deserves. If they are going to be cut back on services, then they deserve no tax increase. VLT money, if we don’t go lobby and fight for it, then the State is going to say that they don’t want it. They should reconsider the whole VLT issue about taking the money out. Lew Benton came up with a good idea with the recreation fund, the $250,000 to eliminate some of the debt service. There is $750,000 in the capital for a generator which he doesn’t believe they need this year. He is not sure what the $750,000 would do to the debt service but believes they should take a look at that. He is asked the Council to reconsider and put at least $200,000 back in his budget. He needs at least that to make things happen. There will be services they are not going to be able to provide. They have made every concession they can to try to save money and to conserve. Take a look at the recreation fund and put money back in his budget so they can operate at a safe level. Commissioner Kim stated in the last revision, they were cut by $250,000. They proposed an additional $10,000 in revenue from apartment inspections. They submitted cuts they thought they could live with. It is his feeling that things are going to get worse. Services will be affected but the public shouldn’t be taxed more for receiving less in services. Therefore, he goes along with the 0% tax increase. One of the critical elements is to look for new revenue sources. This City should rent the part of the West Avenue Fire Station that is occupied by the emergency service or put the emergency medical services out to bid. They will be presenting an RFP at the December meeting. Page 4 of 10 City Council Meeting 11/25/08 Commissioner Franck stated this recession is going to be long lasting. He is in support of this budget for the following reasons: 1. He pushed for the VLT reduction before and after the Governor announced he was reducing it from his budget. He disagrees with the numbers but can live with it; he believes there will be a $2.1 million decrease not a $1.9 million. 2. He pushed for realistic sales tax figures. It is now down to a -1.5%, which is going in the right direction. 3. Expenses have been reduced. He lost a position which had been there for decades. Many other Commissioners have kept their secretaries but he lost his. We have to make changes from the way we have done things over the last 10 years; the good years of the stock market and the housing market. 4. He pushed to keep 2 code enforcers, which is a change from the original comprehensive budget. From a safety standpoint and the new unfunded mandate we just voted through for inspections, these positions are needed. 5. Mostly what he demanded from day one is a 0% tax increase. The government bailed out Wall Street, the banks, and they are on the way of bailing out the big three. He thinks it is important that they bail out the taxpayer. This helps stabilize the City’s housing market. Housing becomes more attractive by keeping taxes low. In the long run we are going to be saved by zero. It is not a bad idea to go out 3 years with an operating budget as this is going to be a long term problem. We can put the VLT money back in the budget and wait for the State budget to come out in April or May or June; then we are reacting versus being proactive. There will be massive layoffs and no planning ahead of time. We have a fiduciary responsibility to take what we have and project the best they can. If we get the VLT we can restore a lot of things we had tocut. Based upon the information at hand, he believes Commissioner Ivins has done the right thing with making those cuts. There is a good chance the VLT money could go to zero the year after. Originally, it was Governor Spitzer’s plan to phase it out over 2 years; cut it in half one year and make it zero the year after. Governor Patterson may do some similar things. We have to be conservative going into the future because times are tough. Mayor Johnson stated he will also be supporting this budget with the proposed amendments and revisions. They must address the reality of the stream of revenue. When putting together a budget, you have to face the reality of revenue and not overextend yourselves and adversely affect the taxpayer. They will continue to lobby in Albany to not lose any share of the VLT money and it would be irresponsible for them to not take into account the realities of what is occurring in Albany today. They have lost the support of having the Senate Majority Leader on our side on this issue. We have to do what we can to provide the services that they feel are important to this community and at the same time not overburden the taxpayer. His department when submitted the original to Commissioner Ivins for the 2009 budget looked at every line item and came back with almost a 20% reduction for 2009 compared to what they actually received in 2008. He feels confident and comfortable that his department did its part to look at the figures, be realistic and what they did not spend in 2008 and did not need going into 2009 and made adjustments accordingly. Despite the dramatic reductions in their budget, Commissioner Ivins deemed they weren’t enough and proposed additional reductions in the first amendment series and again last night. They respect his decisions and will have to live with some of the reductions even though their preference is otherwise. Last night further reductions were proposed including the elimination of certain positions. Mayor Johnson took the opportunity today to speak with Commissioner Ivins in effort to convince him of the necessity of retaining those positions. He hears the comments within City Hall and it is even in the media why a telephone operator is needed when the City just purchased a telephone system. It is not a telephone operator; it is a telephone communications specialist with 19 years experience in City Hall. Her position goes far beyond just answering the phone. She was used extensively in developing analysis for the new system that was adopted last month as a Council as a City wide system that addresses well overdue improvements in our communications within departments and among various City buildings. It is important that they have someone with the qualifications that knows the system, knows what the needs are and can work out any difficulties with that system as it is being installed and put into use. The transition period is the issue here and to eliminate that position doesn’t make sense in terms of serving the City in the most productive and efficient manner. We can look at a needs assessment following the new system being put in place, but to cut the position now based on what we are faced as a needs on behalf of the City as we undertake this extensive project is imprudent. Mayor Johnson also stated that the source of revenue that we are looking at to maintain the 0% tax increase is wisely spread and using the contingency line; something he suggested to Commissioner Ivins Page 5 of 10 City Council Meeting 11/25/08 today. Luckily we are able to use that item to maintain the 0% tax increase. He fully supports that. It is important when your department is facing proposed reductions that you do what you can to examine within your department where you can be more efficient, make cuts, where you can balance things, shift one item to another to maintain your priorities in your department. That is what he tried to do with Commissioner Ivins to achieve the result on behalf of his department. He believes the Council in general has followed that same methodology. He does support this proposed 2009 budget and will be voting in favor. Commissioner Ivins answered a couple of questions that were presented by the Commissioners. The generator mentioned by Commissioner Scirocco is a water item, therefore it comes out of the water extension fees, and so cutting it will not affect the general fund at all; so they can’t do that. The recreation fund was mentioned; every time a new house is built, the developer is charged a fee payable to the City to go into the recreation fund. So if no new houses are going up and things are cutting back, mortgage tax is going down, then that fund is not going to be replenished on a regular basis. Taking that kind of money out is going to deplete that fund quickly and he does not recommend doing that. He is not happy that we are getting into reserves or contingency; he doesn’t think we are making enough cuts but he can’t find anywhere else to cut. In 2006 all the labor lines together added up to $3.2 million dollars, in 2007 it went to $3.5 million, in 2008 the budget was $3.8 million. This was an increase of $300,000. Projected as of now it is increasing $400,000; $100,000 over budget that was higher than previous years. Commissioner Scirocco then requested an additional $123,000 in 2009 on top of that. He is proposing cutting from the figure proposed by Commissioner Scirocco $186,000. That is a number that is higher than the 2008 projected but lower than the 2009 actual spent. It is going to hurt but every department is spending less. Commissioner Ivins had been asking Commissioner Scirocco to cut and keep his expenses down because this day was coming. When the first set of figures came to Commissioner Ivins for the comprehensive budget, the Mayor’s Department cut; Commissioner Franck cut and the Finance Department cut. The 2 largest departments which make up 75% of the budget came in with numbers above last year. If he had accepted all those numbers, it would have been a 29% take increase. He was left no room to do anything but cut those two departments, so he did. He asked those Commissioners for cuts but wasn’t given any. In the last round, Commissioner Kim did come back with some more cuts. When it looked like we found money, things were put back in; all of Commissioner Scirocco’s requests were put back in, even though there was some 1 time money that he didn’t agree they should be doing that because it was building a forced tax increase right off the bat. This is not sound financial planning. We are building in another huge tax increase next year by using the $800,000 from the reserves. Plus the contingency coming out, we may be looking at cutting even bigger amounts in the coming years. He is voting for the budget but is not pleased because we are relying too much on old stuff, but he also realizes they can’t cut any more. Commissioner Ivins stated he would like to call a motion to vote on this. Commissioner Scirocco stated he gave Commissioner Ivins plenty of cuts. With $200,000 back in his budget they were down to 17 or 18 positions they are going to have to cut. Back in November there was $123,000 put in the 2008 budget that wasn’t funded in the 2008 budget; that’s the reason why they were over. Right now we went into the 2009 budget year $133,000 less than where we are. We are not spending every dime we have; we are watching our dollars and spending it cautiously. We had a bad winter; if we have another winter like we had last winter we are not going to have any salt. We can’t get salt; salt went from $40+ per ton to $50+ per ton. He will be back to the table asking for it and you will have to give it to him just like the utilities and everything else. This is a dangerous game we are playing. His problem is the $483,000 you cut the budget in 2009 don’t cut it. It don’t cut it for public works and it’s not going to cut it for the residents of the City. There will be a reduction in the services. There are good people behind him and they will persevere. They need to look at creative ways to re-fund some of the positions back in his budget. This is a quality of life issue. People of the City are spoiled, they are going to start calling to say when are you going to pick up my leaves, when are you going to plow my roads. Commissioner Scirocco stated he is going to give out the phone numbers of Mayor Johnson, Commissioner Ivins and Commissioner Franck. He stated he will do what he has to do to make this thing work because it appears this is the way it is going. He stated he doesn’t understand how they figure the economy is going to get better in 2010 and we are going to spend $6.5 million dollars for a recreation Page 6 of 10 City Council Meeting 11/25/08 center. That makes no sense to him. We are not doing anything about the debt service to the recreation center; we need to get out from underneath that. We should be looking at that. You are taking services away from the people in the City; granted it is for a 0% tax increase, that’s a good thing to put on the table. Snow plowing is going to be at a premium, leaf pick up is going to be at a premium, maybe the flowers are going to be at a premium; he doesn’t know. What you are taking away from him is not going to help him or the people in the City. He would like to take a look at maybe Public Works getting a little more of the money Commissioner Kim is proposing as new revenue so they can fund some of the positions back to where they need to be funded. Commissioner Kim stated while he supports this move, it is important for people to understand that taking money out of the contingency line that he believes was dedicated and budgeted properly for contract negotiations that are on going and will continue. There is going to be a hole left by this 0% increase and will create a challenge for them in the future. They will have more time to deal with the challenge but people have to understand where some of the money is coming from to keep the tax increase at 0%. He suggested addressing a paid parking issue that will support some of these issues. Some long term ideas include a zoning amnesty for the illegal rental units. It will be a one time shot, but they can use the one time shots. He would like to offer the income for the rental of the West Avenue Fire Station as of January 1 as an amendment. The current square footage is 5,686 at $20 per square foot, which they were advised by some realtors was the fair market rental, would be about $113,000 worth of revenue generated by the City. This might help with some of the current issues they are dealing with in DPW. Mayor Johnson stated he has no problem considering new sources of revenue. However, they have a deadline pursuant to the Charter of November 30th to adopt a budget and doesn’t feel there is time for them to realistically and rationally consider how much money can be generated by a new source of revenue that hasn’t been put out to bid yet. We have the month of December where we have opportunity to consider the new source of revenue. He can’t speculate how much revenue this would generate. Is this something that would put the current provider of service to the City out of business because they couldn’t afford to pay rent? Commissioner Franck stated $20 per square foot is more of a retail space; this is more of a warehouse space. Commissioner Kim stated they asked that. This is the price for professional space. Commissioner Franck stated the only other revenue source he can think of, that could free up other money, is the Lillian’s lot. That was supposed to close for $750,000 in September of this year. Even if the money has to be put in a parking lot contingency fund, it is still money to the good overall on our financial statements. It also frees reserves being carried over from 2008 to 2009. This is a one time source revenue, but he wouldn’t have a problem using $200,000 to defray some costs between Public Safety and Public Works, wherever it is needed. If that person still wants to buy the property it should be a simple sale. If they don’t want to buy it we should put an RFP out on that property and sell it. Commissioner Kim asked if the contract was ever executed. Mayor Johnson stated there were issues raised over if it could proceed in the fashion agreed upon in terms of allowing the lot to be used tax free for 2 years until the construction would begin. There was opposition from the some of the downtown merchants regarding the loss of parking spaces prior to the City having a parking solution. Because of that there has been no request or pressure from the potential buyer to push it along. It is still a contract that can be enforced based upon the ‘good graces’ of the potential buyer. There is also an issue with the condition of the sale that the purchase price goes into a parking solution fund. Before we allocate to a general fund, we need to be sure we can do that. Commissioner Franck stated the previous Council accepted the bid. There has been a bid accepted. The original agreement, there was no contract, the Council stated was the successful bidder would keep it open as parking through the end of track season of 2008; which we have met. At that point we were going to close. We have met all the requirements we were suppose to meet. We are not getting any taxes on that property because the City owns it. The Accounts Department has to reassess that property if there is Page 7 of 10 City Council Meeting 11/25/08 a building on it. Even though the person will be paying $750,000 for the lot, they can agree as a City Council to keep the assessment at zero because they are not losing anything as they are not getting anything to begin with. He stated he has no problem with the money going into the ‘parking fund’ because once that money goes into that fund, that is $750,000 more we can take out of the proposal for at least general operating expenses. Those parking spaces are important to the downtown, but it is going to be a lot slower in January, February and March in that parking lot than it will be during the track season. What will happen is we will get to the spring and then say we have to put it off another tax season. If we don’t put this in this budget, after we vote on this budget, we go to the buyer and ask if they are still willing to buy this property. The buyer had also agreed to open up the spaces lost in this lot in the Price Chopper lot; so there is no loss in parking. If this Council has changed its mind on this lot, than this Council has to overrule the previous Council’s acceptance of the RFP. Commissioner Ivins stated he is concerned about doing something like that because they are just putting more money in that is one time stuff. This is starting to build and build. We are looking at some huge property tax increase in 2010 unless we do huge cuts again. He is willing to take out another $200,000 out of reserves for DPW with the idea that however we have to make those funds happen that these funds will then replenish that in the reserve. We will have to do some things to make that happen. He is willing to put that forward in the amendment he has with the idea that we are looking at some other revenue sources that are going to take care of some things down the line. Commissioner Franck stated he has a line item in his budget with $120,000 that he has to have by law. This line item relates to if we lose article 7s and 78s relating to assessments. We have 2 large residential assessments that we are apart by $18 - $20 million dollars. The attorneys from the other side have come in and looked at our financials to make sure those monies are in. If it makes Council happy, he can move that money to Commissioner Scirocco’s budget with the understanding we move forward with this property sale and somehow he gets the $120,000 back in his budget. This is something he doesn’t have a choice on. For a short term standpoint he could shift that line item $120,000 to Commissioner Scirocco. Commissioner Ivins stated that would be a cleaner way to do it. Commissioner Franck advised the $120,000 should get Commissioner Scirocco through the summer. He will push very hard to make a decision on what is going to happen with the property. It doesn’t change any numbers or give Commissioner Scirocco what he wants, but it gets him through part of the year. It is important that we move forward on the $750,000. Commissioner Franck stated again he is willing to move the $120,000 out of his budget with everyone at the table understanding and agreeing if and when the money comes in, $120,000 is put back in his budget. It doesn’t matter how they do it, from contingency or reserve, because by law he has to have the money in that line item. Mayor Johnson stated that they also have to agree they are selling the lot. Commissioner Franck stated there is no choice as the previous Council already agreed to the sale. The contract hasn’t been signed and it isn’t final until then, but if there aren’t 3 votes to sell this place, he wants to hear it now before he gives Commissioner Scirocco his money. Commissioner Scirocco stated he talked with the purchaser early on and the purchaser believes he owns the lot. He is definitely interested in it. Based upon what the Council did last year, they gave him the rights to buy it. Mayor Johnson stated there have been discussions between his office and the purchaser. He believes the purchaser is interested in proceeding. It is only because of timing and not pushing the City out of available parking that it has been delayed in any capacity. If it is the desire of the Council to move forward on this, he can accommodate that. We should be able to have an answer for the Council at the next meeting. Commissioner Franck read the City Council minutes from June 19, 2007 which states “Commissioner John Franck moved and Commissioner Thomas McTygue seconded to award the bid for the Page 8 of 10 City Council Meeting 11/25/08 redevelopment of the Lillian’s lot to Bonacio Construction, the only bidder, for $750,000 with the following friendly amendments: 1. request for the waiver of all permitting inspections is denied 2. the request for waiver of City water and sewer taps and meter fees is denied 3. the request for waiver of any road opening fees is denied 4. the request for waiver of any and all proposed contributions to traffic studies or public improvements is denied 5. the City is going to have use of the lot at least 2 more seasons 6. construction will begin in September 2008 7. during the construction period, upon completion, the City will be granted the use of 31 parking spaces leased by Sonny Bonacio 8. contingent upon review by attorneys of both parties relating to either reduced or waived property assessment while the City uses the lot for parking” He believes all the problems brought up at the table have been taken care of in June 19, 2007. There won’t be lost spaces. Commissioner Scirocco stated there are some gapping holes in there and have become a liability for the City. We either have to fix it or sell it. Commissioner Kim stated he was one of the Council members that voted against this at the time but he also believes this City Council is bound by the actions of the past City Council who approved it. He thinks they are bound to move this forward. Since the development has started on Henry Street, they have received a lot of calls of concern from the business community and the parking community about the lack of parking because of the staging area the development took up. If we go down this road, we have to come to grips with working on this parking solution. It is not just dealing with a shrinking resource but a revenue resource. Commissioner Ivins amended his motion and Mayor Johnson seconded it to include moving $120,000 out of the Accounts’ line and move it to a labor line in the Department of Public Works. Commissioner Scirocco thanked Commissioner Franck for his concerns in his department, it will help. They will work with what they have. Role Call: Commissioner Franck – Aye Commissioner Ivins – Aye Mayor Johnson – Aye Commissioner Scirocco – Aye Commissioner Kim – Aye Discussion and Vote: Hiring Freeze Resolution This item was pulled from the agenda. PUBLIC WORKS DEPARMENT Nothing at this time. PUBLIC SAFETY DEPARTMENT Nothing at this time. Page 9 of 10 City Council Meeting 11/25/08 ADJOURNMENT Mayor Johnson moved and Commissioner Ivins seconded to adjourn the meeting. Ayes – All There being no further business, Mayor Johnson adjourned the meeting at 8:12 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 12/16/08 Vote: 5 - 0 Page 10 of 10