Committee Report - Finance - 6-15-17 — File 203728

Finance Committee Page 1 of 4 Printed 6/18/2017 June 15, 2017 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Tony Lafuente Chair Present Maryann M. Heuston Vice Chair Present Katjana Ballantyne Ward Seven Alderman Present Matthew McLaughlin Ward One Alderman Present William A. White Jr. Alderman At Large Present Robert J. McWatters Ward Three Alderman Present Mark Niedergang Ward Five Alderman Present Lance L. Davis Ward Six Alderman Present John M. Connolly Alderman At Large Present Mary Jo Rossetti Alderman at Large Present Dennis M. Sullivan Alderman At Large Present Others present: Kristen Stelljes - CPC, Rob King - Capital Projects, Stan Koty - DPW, Michael Mastrobuoni - Budget Manager, Ed Bean - Finance, John DeLuca - Water & Sewer, Rich Raiche - Engineering, Tim Snyder - Mayor’s Office, Annie Connor - Legislative Liaison, Peter Forcellese - Legislative Clerk. The meeting took place in the Aldermen’s Chamber and was called to order at 6:10 PM by Chairman Lafuente and adjourned at 9:42 PM. FY-18 Departmental Budget Review and any and all associated departmental financial matters Alderman Rossetti reported that she spoke to Mr. Desmond, from IT, and it was determined that there is an error on line 437006 (E-Rate Reimbursement) on page 19 of the budget book. Alderman Heuston recused herself from all discussion and votes on all DPW departments. The following departments presented their FY-18 budget requests: DPW – Administration Mr. Koty reviewed his department's FY-17 activities and responded to questions from the committee. Alderman Rossetti asked about street cleaning and if it could be done less often.

Finance Committee Page 2 of 4 Printed 6/18/2017 She asked what the cost savings would be if the work was brought back in-house. Mr. Koty stated that, due to the cost of equipment, and the frequency of replacing it, it is more cost effective to contract the work out. He also said that if the frequency of cleaning is reduced, the BOA members wouldn't be happy with the results. Alderman White said that in the past, sweeping was done once a month and the streets weren't clean. Asked about snow removal costs, Mr. Koty said that the DPW exceeded its snow budget by $1.2 million dollars. Alderman Ballantyne asked why the request for line 530000 (Professional & Technical Service) is $87,000 higher than in FY-17. Mr. Koty explained that the cost for Roca services has gone up. Alderman Davis asked Mr Koty to provide the average wage for a Roca worker, including any benefits. Alderman White asked that some background information on Roca be provided, as well. Alderman Rossetti said that according to a report provided by Mr. Bean, the DPW has in excess of $300,000 remaining in Ordinary Maintenance as of June 13, 2017. Mr. Koty replied that purchases have been made and that the balance will be very low at the end of this fiscal year. DPW - Buildings and Grounds Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee. Alderman Ballantyne asked why the budget requests for electricity, natural gas and oil has increased by $700,000 in the past 2 years. Mr. Koty explained that money needs to be spent in order to save money. Alderman Ballantyne asked why the R&M Interior and Exterior Building costs have increased about $400,000 during the same period. Alderman Ballantyne pointed out several other lines where similar increases have been found. Alderman Rossetti asked that Mr. Bean provide a complete, updated list of figures for Professional & Technical Service for all departments. DPW - School Custodians Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee. DPW - Solid Waste Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee. Alderman White asked for a breakdown of the Professional & Technical Service cost, including tonage and tipping fees. DPW – Highway Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee. Alderman White asked for the number of linear feet of sidewalks repaired, etc. DPW – Electrical Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee.

Finance Committee Page 3 of 4 Printed 6/18/2017 DPW - Fleet Management Mr. Koty reviewed this department's FY-17 activities and responded to questions from the committee. Chairman Lafuente asked for an inventory of all city vehicles, including their condition, and plans to update the fleet. Alderman Ballantyne asked for a written breakdown of the Fleet Management's OM budget, specifically, the amounts transferred from other departments. Mr. Mastrobuoni explained that the Administration's idea is to upgrade the city's fleet of vehicles, so there might not be a one to one transfer of funds from other departments in the fleet budget. DPW - Snow Removal DPW - Revloving Funds The Special Events revolving fund is used to pay employees assigned to work events. Alderman Heuston chaired the remainer of the meeting. CPA Kristen Stelljes reviewed this department's FY-17 activities and responded to questions from the committee. Capital Projects Rob King reviewed his department's FY-17 activities and responded to questions from the committee. Capital Projects – Engineering Rich Raiche reviewed his department's FY-17 activities and responded to questions from the committee. Alderman McWatters ask for a list of streets to be re-paved. Mr. Raiche explained that the increase in the Professional & Technical Service line is a result of becoming proactive. Water & Sewer John DeLuca reviewed the departments' FY-17 activities and responded to questions from the committee. Alderman White inquired about retained earnings. Proposed Water Rate Charges This item will be discussed during the budget reduction process. Proposed Sewer Rate Charges This item will be discussed during the budget reduction process.

Finance Committee Page 4 of 4 Printed 6/18/2017 Handouts: • Capital Plan Project List • Revised Pages 232 - 241 • Revised Page 249 • FY-18 Water and Sewer Budget Changes • FY-17 to FY-26 CIP Projects • FY-17 to FY-26 CIP Projects Memo • CPA FY-17 Annual Report • Professional & Technical Services Breakdown - 6-15-17 • Proposed Water and Sewer Rates