City Council

January 5, 2010 CITY OF SARATOGA SPRINGS City Council Meeting Agenda 7:00 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES PRESENTATION(S) EXECUTIVE SESSION Discussion regarding proposed, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporation. CONSENT AGENDA 1. Approval of 12/15/09 City Council Minutes 2. Approve Budget Amendments 3. Approve Budget Transfers 4. Approve Payroll 12/31/09 2010 G/L $69,827.83 5. Approve Payroll 12/18/09 $486,674.42 6. Approve Payroll 12/24/09 $419,620.36 7. Approve Payroll 12/31/09 2009 G/L $484,714.95 8. Approve Warrant 2009 Mid MC2DEC09 $335,395.36 9. Approve Warrant 2009 Regular 3DEC09 $2,394,609.56 MAYOR’S DEPARTMENT 1. Discussion and Vote: Saratoga County Animal Shelter Agreement 2. Discussion and Vote: Saratoga County Office for the Aging Nutrition and Transportation 3. Discussion: School District Contract 4. Appointment: The Heritage Area Advisory Board 5. Appointment: The Planning Board 6. Announcement: CDBG Funding Applications ACCOUNTS DEPARTMENT 1. Discussion and Vote: Authorization for Mayor to Renew Contract for Article 7 2. Discussion and Vote: Temporary Change to Fleet Safety Policy City Council Meeting 1/05/10 FINANCE DEPARTMENT 1. Discussion and Vote: Accept Donations-Inauguration 2. Discussion and Vote: Finance Department Payroll Transfer 3. Discussion and Vote: Tax Anticipation Note Resolution 4. Discussion: City Finances PUBLIC WORKS DEPARTMENT None PUBLIC SAFETY 1. Announcement: Correction Lt. Appointment SUPERVISORS Joanne Yepsen 1. 2010 County Board Organizational Meeting & Swearing In Matthew Veitch 1. 2010 County Board Organizational Meeting 2. 2010 Committee Assignments ADJOURN Page 2 of 12 City Council Meeting 1/05/10 City of Saratoga Springs City Council Meeting City Council Room Tuesday, January 5, 2010 7:00 PM PRESENT: Scott Johnson, Mayor Ken Ivins, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Richard Wirth, Commissioner of DPS Matthew Veitch, Supervisor Joanne Yepsen, Supervisor STAFF PRESENT: Shauna Sutton, Deputy Mayor Kate Jarosh, Deputy Commissioner, Finance Michele Boxley, Deputy Commissioner, Accounts Tim Cogan, Deputy Commissioner, DPW Frank Dudla, Deputy Commissioner, DPS 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 7:04 p.m. PUBLIC COMENT Mayor Johnson opened the public comment period at 7:05 p.m. 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. Kyle York of 59 Railroad Place stated he was pleased to see all at the inauguration. He wants to step forward to state that if he can do anything as a volunteer he is willing to do so. He would be willing to help with traffic control, shoveling of sidewalks for those who can’t, etc. Mayor Johnson closed the public comment closed at 7:07 p.m. CONSENT AGENDA Mayor Johnson moved and Commissioner Ivins seconded to approve the consent agenda as follows: 1. Approval of 12/15/09 City Council Minutes 2. Approve Budget Amendments Page 3 of 12 City Council Meeting 1/05/10 3. Approve Budget Transfers 4. Approve Payroll 12/31/09 2010 G/L $69,827.83 5. Approve Payroll 12/18/09 $486,674.42 6. Approve Payroll 12/24/09 $419,620.36 7. Approve Payroll 12/31/09 2009 G/L $484,714.95 8. Approve Warrant 2009 Mid MC2DEC09 $335,395.36 9. Approve Warrant 2009 Regular 3DEC09 $2,394,609.56 Commissioner Ivins added one item to the consent agenda - 2009 Mid MC3DEC09 for $32,062.85. Ayes - All MAYOR’S DEPARTMENT Discussion and Vote: Saratoga County Animal Shelter Agreement (10-01) Mayor Johnson moved and Commissioner Ivins seconded to authorize the mayor to sign the Saratoga County Animal Shelter Agreement as pr oposed . Mayor Johnson stated this is an annual agreement and there is nothing different this year. They will provide the services we need and will respond to emergency or rabies related incidents should our animal control person be unavailable. That would be a separately billed item. The sum of the services the City will pay to the County is $3,722.87 for the fiscal year. Commissioner Scirocco asked if there are any costs associated with calling on them for additional services. Mayor Johnson stated if they come out for an emergency or rabies it will be billed out at $35 per call plus mileage. Commissioner Ivins confirmed this agreement is not different from previous agreements. Mayor Johnson stated that is correct. Ayes – All Discussion and Vote: Saratoga County Office for the Aging Nutrition and Transportation Agreements (10- 02) Mayor Johnson advised there are two agreements here with the Saratoga County Office for the Aging of similar nature with the County. He will take address each agreement separately. Mayor Johnson advised the first agreement provides transportation services for our seniors and is in the same amount as last year; $4,670. Transportation is provided for medical, legal, and other appointments offered through our Senior Center. Mayor Johnson moved and Commissioner Scirocco seconded to pass this agreement as proposed. Ayes – All Mayor Johnson stated the next agreement is between the City and the Office for the Aging for nutrition services for this calendar year. The County will provide meals and supportive services to our seniors in the Senior Center setting as well as home delivery programs. This is an annual agreement in the amount of $4,670. Mayor Johnson moved and Commissioner Scirocco seconded to enter into the agreement as proposed. Page 4 of 12 City Council Meeting 1/05/10 Ayes – All Discussion: School District Contract Mayor Johnson withdrew this item from his agenda. Appointment: The Heritage Area Advisory Board Mayor Johnson stated this board has the responsibility of making recommendations to his office and City Council regarding policies and activities affecting our City’s heritage area. There are over 17 heritage areas state wide. He appointed Lance Ingmire to the board. Lance is a fourth generation Ingmire in Saratoga Springs. He grew up in Saratoga Springs and graduated from Saratoga Springs High School. Lance had a career in the insurance industry prior to retiring and more recently a major organizer and responsible for the annual Saratoga Springs Civil War Living History Encampment in Congress Park. Lance also holds various positions on various other boards. Appointment: The Planning Board Mayor Johnson stated he was pleased to appoint Suzanne Bernardi - Cleary to the Planning Board. She is recent to the Saratoga Springs area – she has been here only a few years. She is very involved in our community and brings a great business background and marketing management experience, etc. She currently works for GE Energy. Mayor Johnson thanked the outgoing member Laura Rappaport. Her term expired last year. Announcement: CDBG Funding Applications Mayor Johnson stated the applications for the Community Development Block Grant (CDBG) program applications are available for the 2010 cycle in the Office of Community Development and the City web site. There is about $300,000 of grant money available. Applications are due back to the office in City Hall by 4:30 p.m., January, 29, 2010. ACCOUNTS DEPARTMENT Discussion and Vote: Authorization for Mayor to Renew Contract for Article 7 (10-03) Commissioner Franck moved and Commissioner Ivins seconded to authorize the mayor to sign a renewal contract with Towne, Ryan, and Partners for professional legal services relating to Article 7 matters at a rate of $135 per hour for litigation work and $170 per hour for trial representation. Commissioner Franck noted this is the same firm the City has been working with for Article 7s last year, but they changed the name of the law firm due to new partners. Also, the terms and conditions are the same as last year’s contract. Ayes – All Discussion and Vote: Temporary Change to Fleet Safety Policy (10-04) The Fire Department has requested the removal of the second sentence in Item 19 of Section Three, of the Fleet Safety Policy, pertaining to the two man operation of fire vehicles. This removal is temporary and contingent upon the further review of the matter by the Safety Committee. In the meantime, the new Fire Chief has assured the Accounts Deputy that he and his team will fully cooperate with Risk and Safety Manager and the Safety Committee to come to a permanent solution to the continued property damage losses involving fire department vehicles. Risk and Safety has also received additional information from the Fire Department pertaining to Standard Operating Guidelines that have been proposed as a means of Page 5 of 12 City Council Meeting 1/05/10 mitigating the continued losses by the operation of the fire truck fleet. That information will be presented to Safety Committee at its January 21st meeting for further review and consideration. Commissioner Franck moved and Mayor Johnson seconded to approve the temporary change as just described. Commissioner Franck stated they felt it is best to send this back to the Safety Committee for their review versus the Accounts Department making a decision on this. After the committee makes a recommendation, he will bring it back to the Council. Commissioner Scirocco stated there seems to be confusion on his part. He stated he didn’t have a problem putting 2 people in vehicles when they were doing snow plowing. When they got the resolution back it said for snow removal activities; that could mean a whole bunch of stuff. He is willing to go to the committee and explain it to the committee. He too would like to have a temporary change in DPW’s policy based upon what he is seeing there. He doesn’t want to violate the City policy or create any problems for his guys. He doesn’t have the people to put in the trucks when they are removing snow. This creates a hardship for his department. Commissioner Franck stated he would need to speak with Marilyn Rivers. He confirmed with Commissioner Scirocco that is concerned more about the wording of the exception. Commissioner Scirocco stated that is true. Commissioner Franck suggested passing this tonight and speaking with Marilyn regarding DPW. Commissioner Scirocco stated he was under the impression when they voted on the policy, and he even asked the question, every time one of the dump trucks goes out we need to have an additional passenger in the vehicle. We decided at that point only for snowplowing. He asked it of Marilyn if she meant that every time a truck goes out we need 2 people in the vehicle; he doesn’t have the people to do that. Commissioner Franck stated he is not against it but without having risk and safety here he can’t make the friendly motion at this point. Mayor Johnson suggested getting a better definition of what winter snow removal activities encompass. Commissioner Franck stated that definition would have to come from the Safety Committee. Michele Boxley explained fire trucks do not require a CDL. That modification is different from modifying the 2 driver requirement for a CDL vehicle; that will not happen. We can look at the other trucks that don’t require a CDL and modify that, which was talked about and done in this policy. She encouraged Commissioner Scirocco to participate in the Safety Committee and attend the meeting on the 21st to discuss that. Mayor Johnson confirmed the large snow plow trucks require a CDL and the smaller pick ups do not. Michele advised that is correct. Commissioner Ivins confirmed that if the large dump trucks have the plow taken off in the summer, they would still require 2 people. Michele advised that is correct. Commissioner Scirocco stated there is no way that will happen; he doesn’t have the people in his department. You just shut down the whole Department of Public Works. Commissioner Franck stated again this can be revisited at the Safety Committee. Page 6 of 12 City Council Meeting 1/05/10 Commissioner Scirocco stated these trucks are out everyday. Commissioner Franck stated he understands that and these trucks were out everyday when this policy was voted on. Commissioner Scirocco thought that there was a consensus that when they were snowplowing that was acceptable; which he doesn’t have a problem with. He asked Marilyn if they were just out on a daily basis if that had to happen and Marilyn said it doesn’t have to have 2 people in a vehicle. Mayor Johnson stated it is written right now as winter snow removal activities. To him that means removal of the snow, plowing, but not just driving around the City. Commissioner Scirocco stated the phrase snow removal activities is the gray area. What do they do in the mean time? Commissioner Franck advised for the mean time they will have to have 2 people in the snow removal vehicles; which is what Commissioner Scirocco is stating he does now anyway. Commissioner Scirocco stated they put 2 people in the truck for snowplowing. He will talk to Marilyn about it. He doesn’t have the financial means to put 2 people in a CDL truck at all times. Ayes - All FINANCE DEPARTMENT Discussion and Vote: Accept Donations-Inauguration (10 – 05) Commissioner Ivins moved and Mayor Johnson seconded to accept the following donations made at the inauguration ceremony January 1, 2010; Panza’s Restaurant and Union Grille for donation of food, Stewart ’s Shops for the donation of beverages, Price Chopper for the donation of paper goods, Sunnyside Gardens for the donation of the poinsettias, and Mark Baker and the City Center for donation and use of the room to hold the event. Commissioner Ivins thanked everyone who attended, A.C. Riley fro emcee the event, Judge Wait for administering the oath, Senator McDonald for speaking, and Dave Harmon for being the photographer that day. Everything went smoothly and it was a nice event. Mayor Johnson also thanked all those who made it possible to hold the event at the City Center as well as the contribution that made it a nice affair. Ayes – All Discussion and Vote: Finance Department Payroll Transfer (10 – 06) Commissioner Ivins moved and Mayor Johnson seconded to approve the Finance Department payroll transfers and previously distributed to the Council. Commissioner Ivins stated this is for transfers from info systems OT, social security, account clerk PT, hardware, software, office supplies, professional services, unemployment to help desk tech salary, social security, hospitalization. Ayes – All Page 7 of 12 City Council Meeting 1/05/10 Discussion and Vote: Tax Anticipation Note Resolution (10 – 07) Commissioner Ivins moved and Mayor Johnson seconded to approve the tax anticipation note resolution as previously distributed to the Council . Commissioner Ivins advised this authorizes the finance department to borrow up to $10 million at an interest rate of .75%; less than a 1% interest rate. Initially the City is only going to borrow $7 million and estimate paying about $15,390 in interest. In 2008 we borrowed about half of that and paid over $22,000 in interest. Thanks to Adirondack Trust Company for an awesome low interest rate. The City has to do this due to cash flow issues and have to come up with a retirement payment of over $3 million dollars between now and when we start collecting property taxes. We anticipate paying this whole amount back in April after the 1st quarter of property taxes has been collected. Commissioner Scirocco asked if this will change the tax rate. Commissioner Ivins stated it will not change the tax rate. They budgeted about $22,000 for interest, so this is coming in below budget. Commissioner Franck advised we do this every year. Commissioner Ivins further explained this was not done last year because the City had the surplus. He has been stating we have to build up the reserves so that we don’t have a cash flow issue. Roll Call: Commissioner Franck - Aye Commissioner Ivins - Aye Commissioner Scirocco - Aye Commissioner Wirth - Aye Mayor Johnson - Aye Discussion: City Finances Commissioner Ivins stated sales tax improved; we are projecting $8.3 million. We still haven’t received end of November and most of December. We budgeted $8 million for 2010 which is $300,000 less than we are anticipating receiving in 2009. He is convening a paid parking committee next week. He is asking for a representative from DPS, DPW, have the Mayor’s Office have a representative from the community, the Finance Department will have a representative from the community, the Chamber of Commerce, the DBA, the Special Assessment District, and a representative from the City Center. Commissioner Franck stated we should be very careful about jumping into the County sales tax. If you go back to when our bond rating when down, it was clear there was an over estimation on the County number that year when we went to the City formula. Look at the percentage increases over those years of the City versus the County; you will see we were better off with the City’s formula. The County can change the formula at any time and no one knew how the County formula was being done; it was all being done in secret. Look at the numbers before and decisions are made about changing the sales tax. Also, relating to the parking revenue, if it is not going to happen, we shouldn’t way until May or June to make decisions on this. If that number is not going to come in, we are going to have to make some more tough decisions sooner rather than later and he doesn’t want to wait until July or August to make those decisions. He has concerns about the $1.3 million dollar revenue figure in the budget. We may have to tighten our belts sooner rather than later on that. Mayor Johnson stated the County is looking at revising its distribution formula under its sales tax. He believes we need to be open to the idea of being part of that plan depending upon how they go forward with the new formula. He asked the supervisors to get actively involved at the County level on behalf of the City and keep the Council well informed on this issue. Commissioner Franck stated he believes we should be good neighbors and review it. We are not going to get any sales tax from Global Foundries; that will all be sales tax free. Go back through the history of the Page 8 of 12 City Council Meeting 1/05/10 sales tax; we didn’t do bonding or have sales tax increases from 1974 to 1990. That was because we got our fair share of sales tax until the early ‘80’s. When we lost that we had to start bonding for things. We paid cash for various things over the years until our sales tax was change. You need to look at the history from 1975 to now to get a true feel. We have to have something guarantee and it has to be transparent. Commissioner Ivins stated he was very involved many years ago when the City was still involved with the formula and the City was making out better. It showed as soon as we got out the numbers changed considerably. Commissioner Franck stated that is not true. He is basing it on a budget figure that Commissioner Lenz at that time put in there; which was over budgeted by $1.5 million. Review of the bond when it was degraded you will see they hit Mr. Lenz very hard on it. Commissioner Ivins stated the actual numbers that came in were less by $1 million dollars; not the budget amount. Commissioner Franck stated he doesn’t know that because they were going to change the formula. Commissioner Ivins stated they weren’t going to change the formula. Commissioner Franck stated the formula was changed numerous times. Commissioner Ivins stated the formula would come up every 3 years and it had not changed for about 6 years. He agrees getting back into it now is probably not going to make sense as the other towns are not going to give up additional revenue that they are already giving. Commissioner Franck stated he would put Saratoga County’s increase and decreases against Saratoga Springs over those 6 years and you will find we came out better percentage wise. Currently we are guaranteed 50%, before that there were no guarantees and the distributions could be what they are; that is why Malta is part of this argument now. We should revisit, but let’s get all the facts out there and get the total history of the sales tax. A lot of the places that have done well were on the back of Saratoga Springs and they don’t have town taxes. The formula should be transparent and it hasn’t been. Commissioner Ivins stated they couldn’t get the exact numbers for each town as the State Department of Taxation wouldn’t give out that information. Commissioner Franck stated the sale tax numbers increased greatly every year, except for this past year, when we got into the City formula. Commissioner Ivins stated the formula is based on assessment and based on population. Commissioner Franck stated he is looking at numbers, percentages, and trends and they don’t tie into what Commissioner Ivins is saying. Mayor Johnson stated this is something we do have to watch. Commissioner Scirocco stated if there is any way we can get back in, it is something we should look at. He thought it was a mistake when the City Council opted out of the sales tax formula and still thinks it is a mistake. He doesn’t think they will let the City back in. One positive thing when we were in the sales tax formula is we got $4 million up front and we didn’t have to borrow any money, because they knew we could generate at least that in tax. We were losing over $1 million per year based upon the actual numbers at the County and based upon what we could generate in the City. Commissioner Franck asked how much we lost in sales tax in 2009 from 2008. Commissioner Ivins is estimating 5.27% or about $300,000. Page 9 of 12 City Council Meeting 1/05/10 Commissioner Franck stated if we were under the County formula we would have lost closer to $500,000 if we were in the County formula this year. Commissioner Scirocco if they lose 10% it is 10% of a bigger number. It is based on assessment and population. The City has grown and the assessment has grown. Revenues in the City would have come back. Commissioner Franck stated when we get the census back you will see our City has not grown as much as Halfmoon, Clifton Park, etc. Commissioner Ivins stated he didn’t feel the County will offer to let us back in and give us more money. He doesn’t see us getting an offer we are going to consider. Commissioner Franck stated he felt they would because we they need us more than we need them. We are going to generate them more money. PUBLIC WORKS DEPARTMENT Discussion: Update on Visitor Center (added to agenda) Commissioner Scirocco passed pictures around to the council. The project was completed in late December with the allocated funds. Carpenter Rusland did a really nice job and stabilized the front of the building. They also repaired another crack in the front left of the building. They will be doing roof repairs in 2010. Commissioner Ivins asked Commissioner Scirocco to update his office and advise them ahead of time when the money is coming out of the capital budget so they can determine cash flow. Commissioner Scirocco moved and Mayor Johnson seconded to add the repair work for the Visitor Center to his agenda for discussion. Aye - All PUBLIC SAFETY DEPARTMENT Announcement: Correction Lt. Appointment Commissioner Wirth stated for the record that the correct name of the police sergeant that was promoted to police lieutenant at the last City Council meeting is Sean Briscoe. SUPERVISORS Joanne Yepsen 2010 Board of Supervisors Organizational Meeting & Swearing In Supervisor Yepsen reported Bill Peck, supervisor from Northumberland, was unanimously elected as chair of the County Board and Tom Wood from the Town of Saratoga was elected as vice-chair. She was assigned to the following standing committees: racing, veterans, public health, and social programs. These committees were ones she requested to be appointed to. Rules of the 2010 Board were approved as well as several resolutions. One resolution that was tabled was establishing standard work days for elected officials. Chairman Peck formed a new task force to look at the sales tax distribution among the municipalities and cities in the County. Jack Lawlor from Waterford will be chairing that task force. Page 10 of 12 City Council Meeting 1/05/10 The sales tax formula in the County is based upon assessed property values. It is the amount the Global Foundries property will be assessed for that will determine the amount that municipality will received. That could skew the distribution as it currently stands. We are also a host City for a costly and big entity that attracts many thousands of people. An extended explanation of the sales tax can be found under the treasure’s site on the County’s website. In 1982, the County imposed a 3% sales tax. They were the last county in the state to have any sales tax. Before that, as Commissioner Franck stated, the City was collection 3% on its own. In 1985, a formula was devised by the County to distribute sales tax based on assessed property values. The City elected to get out of the set formula and began to collect and keep their own sales tax in 2001. Today, if you purchase something in Saratoga Springs, there is a 7% sales tax of which 4% goes to the state and the remaining 3% is split between the County and the City. She met with the county treasurer, Sam Pitcheralle, and requested a number of figures for 2009. Supervisor Yepsen will review all the areas on their ledger where the City and the County have a financial agreement or some kind of relationship. She will then put together a small group to evaluate this information. Matt Veitch 2010 Board of Supervisors Organization Meeting Supervisor Veitch reported the Board met yesterday. Each year the County changes or reorganizes based upon its committee structure. They are re-assigned new committees in January of each year. There was a potential 10% drop in sales tax revenue in 2009. Stillwater and Malta assessed values will increase at a large amount. With the way the formula is set up now, with 50% going to the towns splitting their assessed value with the County, it is a little unfair with the towns. Small towns receive more than what their populations are and the large towns get a little less. If we are to go forward as a city to look at getting back into the sales tax formula, it has to come from the Council. Neither he nor Joanne were appointed to the sales tax committee as the City of Saratoga Springs is not in the formula. 2010 Committee Assignments Supervisor Veitch reported he was named the chair of the Racing Committee the Trails Committee, he was also appointed to the Public Safety Committee and Public Works Committee, the Social Programs Committee, the Autism Council, and the Gaming and Raceway Foundation. Mayor Johnson stated there were reports at the end of last year that the County may be looking at increasing the overall sales tax rate for 2011. He asked Supervisor Veitch if that is a topic that is going to be addressed by the newly formed committee. Supervisor Veitch advised that it is not part of their charge. They are to look at distribution only at this time. Commissioner Franck stated the mayor’s question is very important. We would lose control of what we do in the City whether we go up or down because you are in the County. There are a lot of buildings in Saratoga that are not for profit or state buildings that don’t pay sales tax. Executive Session Mayor Johnson moved and Commissioner Ivins seconded to move to executive session for discussion regarding proposed, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporation including matter s involving the status of the current DEC investigation and settlement at 8:12 p.m. Council returned from session at 9:58 p.m. Mayor Johnson reported nothing was resolved during the executive session, therefore there is nothing to report to the public. ADJOURNMENT Page 11 of 12 City Council Meeting 1/05/10 Mayor Johnson moved and Commissioner Ivins seconded to adjourn the meeting. Ayes – All There being no further business, Mayor Johnson adjourned the meeting at 10:00 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 1/19/10 Vote: 5 - 0 Page 12 of 12