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HomeMy WebLinkAbout05-11-2009 Work SessionCommittee: Date & Time: Place: Subject: Public Meeting Notice City Council and Mayor Monday, May 11 , 2009 at 4:45 p.m. Delchamps Room 161 North Section Street Work Session Notice must be stamped, dated and initialed before posted on bulletin board. ED CITY OF FAIRHOPE WORK SESSION AGENDA MONDAY, 11 MAY 2009-4:45 P.M. -CITY HALL DELCHAMPS ROOM 1. Regional Plan -Eastern Shore 2 . Staff Suggestions and Ideas for Budget Cutting Measures 3 . Baldwin County Sewer Service STATE OF ALABAMA )( COUNTY OF BALDWIN )( The Mayor and City Council, met in a Work Session at 4:45 p .m., City Hall , Delchamps Room , 161 North Section Street , F airhope , Alabama 36532, on Monday , 11 May 2009. Present were: Mayor, Timothy M. Kan t Council President , Debb ie Quinn Councilmember , D an Sta nkoski -Arri ve d at 5 :05 p.m. Councilmemb er , L onnie M ixon , Chairman Councilmemb er , R ick K ingrea City Clerk, Lisa A. Hanks Councilmember, Mike F ord was absent. Council Pres id en t Quinn called the meeting to order at 4:45 p.m. 1. Eastern Shore Cha m ber-Local , State , and Federal issues. Council Presiden t Qui n asked for ideas for regional planning, so we could pull our resources together and get more done. Daphne and Spanish Fort need sidewalk money. We could look into propert y insurance issue with Daphne. Councilmember M ixon said he had no thoughts at this time. Mayor Kant said there were two idea s to help the Eastern Shore: 1. Technology Park would brin g higher paying jobs to the area 2 . Fairhop e Airp rt-we are looking at Vocational School (2-year Colleges) We h av e 250 acres and nee d to make a profit from this property . Both of these id e as w ou ld promote the Eastern Shore region . Mayor Kant also mentioned that Baldwin County was loo king into a better transit system . Councilmemb er K ingr ca asked; is this Baldwin County or Mobile? Work Session Monday, 11 May 2009 Page-2- Mayor Kant repli ed we have a Mobile and Bay Minette transit. This cuts down on congestion. On our recy cling iss ue , Mayor Kant spoke with Jennifer Fidler, Public Works Director, and we are lookin g for the County to do regional collection. Councilmember M ixon asked; how must does it cost? Ms. Fidler replied approxi matel y $250,000 and we take it to the location. Last year we were about even, but no w it is costing the City. Revenue last year was approximately $160,000 and we p ay Sun Burst to use their paper bailer. Council Presiden t Qui n said that was a great idea and would be for the region. Ms. Fidler said the County is looking toward a MURF system. Mayor Kant stated the only problem is with glass. Ms. Fidler said we are wa iting on Cello which is a place in Bay Minette, but we are not sure on the status. Council Presiden t Qui nn said she spoke with Daphne on health insurance and wellness activities. She mention ed the need for workmen's compensation to be down. Mayor Kant said that the two largest medical insurance companies are United and Blue Cross and Blue Sh ie ld . Maybe we could put several entities into one big plan. Councilmember K ingr ca asked about the City dump. Ms. Fidler said we ar e not ready to close it down yet, but are separating stuff on the street. Councilmember Mixon asked; when will you have to close? Ms. Fidler replied by the end of the fi sca l year. Mayor Kant said the Co unty wants to use our transfer station. There is only one or two in the County that are pe rmitted and we are working on tipping fees. Councilmemb er K ingr ca asked; is there any reason or incentive for us to regionally do as one group? Mayor Kant rep li ed yes the County will give back to Cities. Work Session Monday, 11 May 2009 Page-3- Gregg Mims , General Superintend ent , said he has been working with the Airport Authority regardin g technology school and new terminal. Mayor Kant said the Ci ty was workin g with ALDOT on State Highway 181. Mr. Mims mentioned the $3 .7 million Block Grant; and that we hoped to get part of the $15 million pot from Wa sh in gto n whi ch is a 100% paid less engineering services. This is for sidewalks from Tran sportation Enhancement Grants which is a first come first serve application. Council Presid en t Qui nn said she hea rd that they would start in the summer on State Highway 181 , the ov erpass on Highway 13 , and work on the Causeway near the U .S.S. Battleship. 2. Mayor's Bu dget Cu ts Mayor Kant went ove r the proposed budget cuts with the City Council. PROJ E T D Y EA END TOTAL REVENUE 2009Budget Projecfedaudget Petcent Amocn Property Tax $ 5 ,000,000 $ s.100.000 2.00% $ 100.000 Local Tax 1,054,100 1 ,004,099 -4.74% (50,000) Uoenses&Permits 2,833,500 2,111,340 -25.66% (727,000) Fines & Forfeitures 310,000 225,000 -27.42% (85,000) Adult Rec 34,000 34,897 0.00% GolfOept 1 ,720,105 964,500 -43..93% (755,605) State of Alabama 242,900 306,148 0 .00% USGov't 341,000 341,000 Interest and Rents 2 36,000 209,545 -11.23% (26,500) ChargM for Services 4 ,714 ,000 4 ,414,000 -6.36% (300,000) Other Revenue 406,600 349,351 -14.31% (58.200) Total Revenue 16,551 ,205 1S,059,880 -9.43% (1 ,561 ,305) Tranafef's 4 ,090,000 4 ,090,000 0 .00% Total Re-venues & Transfers 2 ,641 ,205 $ 19,149,880 -7.56%$ (1,561,305) Work Session Monday, 11 May 20 09 Page --4- PR J ECTED Y EAR END EXPENSES Orig inal Budget ProjftdedBudget ~ General Gov't $ 5 ,130,100 $ 5,526,253 7.1Di, $ Pollce 3,984,400 3,929,818 -1.83% Fire 861,000 753,287 -12.51% Recte11tlon 998.200 912,271 -8.61% Adult Rec 510,300 414,137 -18.84% Street 2 ,661 ,500 2,422,792 -8.97% Sanltltlon 1.726,400 1,429,798 -17.18% Golf 1 ,389,000 1,201,088 -13.53% Debt Service 2.326,000 2,164,900 -6.93% Appn)priatlons 1,019,800 819,800 -19.61% 395,930 (72,999) (107,713) (85,929) (96,163) (238.709) (296,604) (187,914) (161,100) (200,000) Total 20,606,700 $ 19,574.144 ~10%$ (1,051,201) To tal Reven ue & Expenses 2009 Government Funds Only Reven ue as Projected Expens s as Projected $ 19,149,880 $ 19,574.144 Shortfall $ (424,264) B a lance Budget for Operations Only Work Session Monday, 11 May 2 009 Page-5- PROPOSED CUTS FOR THE GENERAL FUND 1. Jun e l5 1 -On ce /W eek Garbage Servic e. Savings of $16,000/month 2. Next 3 Holiday s -City will be complet el y shut down a. Employe es Scheduled to Work Holiday will take another day off 3. All Ware hou se Op erations will move to 10 Hour days, 4 Days per week 4. All pa rt time wo rke rs at Golf Cour se will be given choice to fill in other areas of the city or be off unti l Septe mb er, wh en co ur se re-opens 5. Golf Pro-Shop employe es wil l be re-as si gned to other City positions 6. Re-Ev al uate Inm ate s in City Jail and po ss ibly use County Jail 7. Work with County on trash & recyclin g pickup 8. Work wit h Poli ce De partmen t to colle ct all outstanding fines 9. Furth er reduce el ectricity usage for th e City, we are currently down 25% from this point la st yea r. 10 . Sell th e 5 us ed Po lic e Ca rs. 11. No ov er time for t he remaind er of the ye ar Councilmember M ixon responded to the Mayor's cuts by calling them Smoke and Mirrors and told the Mayor you could no t cut months ago, but now propose these cuts. "You have pres ente d a wis h li st. Where are you getting the money for the rest of the year?" Mayor Kant repli ed from the Utilities . Council President Quinn said we need to propose to accept Mayor Kant 's cuts and look at items to research . Councilmember Stankoski st ated we are going to be short $400,000 at end of the year. Mayor Kant said the $400,000 is part of the 75% of the $4.6 million transfer from Utilities. Work Session Monday, 11 May 20 0 9 Page-6- 3. Baldwin County Sewer Service David Conner and Michael Delaney, attorneys for Baldwin County Sewer Service (BCSS), requested to run lines fo r Key Allegro and Gaineswood. Mr. Conner stated that the Fairhope Planning & Zoning Commission approved both BCSS and the City of Fairhope to go for w ard with running new lines. He gave a brief history of their request which began in 2008 and has taken appro ximately 18 months to get an answer. Mayor Kant recommended that the Planning & Zoning Commission put both on the agenda the same night. He said their o ffer wo uld include the following items: run lines free of charge , put in lift station, h ook up lines to ho use not just the street and the City would just step down. We have waited approximately 18 to 19 months to be told yes or no . Council President Quinn asked where we were on Silverwood and Gaineswood. Mayor Kant repli ed the lines are a lready in. Council President Quinn then as ked about the lines for Key Allegro. Mayor Kant replied we are b egi nning to nm lines now. Councilmember Kingrea ask ed; h ow will this affect the agreement? Mr. Conner repli ed this wi ll be a one-time amendment to the agreement. Council President Quinn st ated Key A llegro bothers her in going four miles further down the road . Mr. Conner said if you g ive th is hook up away, many would like to join the City of Fairhope's sewer system. Councilmember Stankoski stated the Utilities are not losing money. The City will operate Utilities in the manner it p refers and BCSS is on a time restraint, not the City. Mr. Conner responded we are pro posing a way to fix this problem and save the City some money. Council President Qui n n asked ; do any others want to discussions open with BCSS? Councilmember Kingrca said the C ity sho uld operate its Utilities and it should not have taken 19 months to get here . Work Session Monday, 11 May 2009 Page -7- Councilmember Mixon said we should look to future and will eventually head to the South. Mr. Conner said BCSS is offering to purchase and we will take an $800,000 loss to approximately $150 ,000 to $200 ,000 per year profit. The City can reclaim its property at the sewer plant. However, an amount we are willing to pay cannot be determined without the inform ation we requ ested . M ay or Kant told the City Clerk not to release the documents because these documents were proprietary. Mr. Conner said he does not think these documents are proprietary; and in order for BCSS to put their best foot forward and give the bes t propo sal the do cu ments are nee ded . Council President Quinn stat ed that she spoke with Chris Gill who said the City Council nee ded to vote on this iss ue; and if we decide to release the requested documents , we should have a Confidenti ality Agre e ment signed by BCSS before releasing said documents. The meetin g was adjourned at 5:55 p .m . Lisa A. H anks City of Fairhop e City Clerk