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030734
| 0 | 1) | Budget | Communication from the Mayor transmitting the 2004 City Budget.
Minutes note: Also appeared: Joseph Czarnezki, Director (DOA-Budget), W. Martin Morics (Comptroller's Office), Marianne Walsh, Manager (Fiscal Review), Cassandra Patterson, Special Assistant to the Finance & Personnel Committee
DPW-ADMINISTRATIVE SERVICES DIVISION
Mariano Schifalacqua, Dorinda Floyd, Thomas Bell & Jim Carroll appeared.
Mr. Schifalacqua noted a 10% reduction in staffing and budget levels, with three areas: 1) payment for outside services (rebidding some contracts); 2) increased efficiencies; and 3) service level changes. Mr. Bell then proceeded to read from the Budget Office highlights. Mr. Carroll followed by reciting the fiscal overview. The Chair noted $5 million in Capital funding for a new phone system, and Mr. Schifalacqua stated a consultant was hired to review the present infrastructure system, and Ms. Floyd hoped work could commence in April and be completed by year end. Ald. Hines encouraged maximized use of technology and the DPW's WebPages, but most requests for service still come by phone (over 200,000). (Ald. D'Amato arrived) Ald. Murphy was advised DPW worked with MPD and the City Attorney regarding building a module for tracking of police overtime and time adjustments.
DPW-OPERATIONS DIVISION---SANITATION
Mariano Schifalacqua, James Purko, Preston Cole, Michael J. Engelbart, Ald. Richards, Ald. Witkowski, Wanda Booker, Leonard Streich, John Garland, Gary Colorez, Michael Campbell, Patty Yunk, Ken Wischer, Patrick Hartmann & Jim Carroll appeared.
Mr. Hartmann read the budget overview, noting reduction in staffing and service levels. Mr. Carroll thereupon gave his fiscal presentation. Ald. Donovan expressed concern over extending garbage pick up by one day, to eight days; It may cause problems during the winter collection of garbage, especially during the holiday season and storm season. Mr. Schifalacqua noted flexibility in staffing which would continue to be reassigned to address the holiday delays despite proposed layoffs, but conceded snow days (4-inches) could not be predicted and could create a day or two delays. Mr. Engelbart distributed two calendars to answer concerns and also gave a PowerPoint presentation. They would continue their symbiotic relationship with Dept. of Neighborhood Services (DNS) inspectors and use other DPW sources for catch-up and clean-up work. Holiday refuse tends to be wrapping paper, and any food products remain frozen and should not putrefy. Ald. Murphy suggested charging citizens for replacement of garbage carts, and Mr. Morics advised there could be revenue realized and could come off the tax levy. Mr. Czarnezki warned that this could cause more incidents of stolen carts. Mr. Schifalacqua noted a $282,000 savings by going to an extended winter collection cycle. He also stated that per Alds. Murphy & D'Amatos' request, DPW is studying the possibility of charging for special pickups. Ald. D'Amato noted that the eight-day cycle is often extended from 10 to 15 days due to weekends. Saturday overtime pickup costs are approx. $75,000, which amount remains in the budget. Brush pickups were restored through a State grant. Sanitation staffing is proposed to be reduced by six Supervisors (to 21) due to efficiencies. Mr. Cole explained the Code Green enforcement program, which frees up Sanitation Supervisors by using lower wage employees to perform certain services. Layoffs of up to 17 employees were discussed. Flexibility of workforces and setting of priorities were also mentioned. Ald. D'Amato noted that a regular cycle for special pickups appears less costly than reacting to calls for same, but funding remains an issue. Ald. Murphy suggested working with West Allis and Wauwatosa regarding brush pickups, which could generate revenues for the City. He expressed concerns with the Call Center, which created a reduction in clerical staffing at the Ward Yards. Ald. D'Amato was advised the Call Center could track calls for special pickups, with a majority of calls being one-time only. Ald. Donovan was advised there are six unfunded Sanitation Inspector positions included in the budget-need to work with City Attorney and DNS. The Chair was advised by Mr. Schifalacqua regarding data accessibility, and assured that increased efficiencies allow for supervisory staffing changes. The SPA for Neighborhood Pickups remains at $70,000.
Ald. Richards was advised there are informal snow and ice removal contracts with surrounding communities, i.e., Glendale. Mr. Leonard Streich, Local 61, commented on possible problems due to eight-day collection cycle and concerns over 22 layoffs and change in employee titles. The Chair was informed that if crews do “call-in” pickups, they would also remove neighboring piles. Ald. Witkowski was advised regarding curbside pickups. Mr. Garland, AFSCME, was also concerned about layoffs in Forestry, noting these employees are often moved into Sanitation Operations. Mr. Gary Colorez, San. Supervisor, concurred there will be a problem with the eight-day pickup proposal and with the staffing reductions, citing emergency situations-salting operations could be delayed by hours. Mr. Schifalacqua disputed this last statement. Wanda Booker stated that DPW uses an historical five-year average, removing abnormal storms, when estimating snowfalls. Michael Campbell expressed concerns over eight-day and beyond collections. Ms. Yunk, AFSCME, discussed the issue from a wholistic view. Ald. Hines agreed that entities need to be put in place to react to possible problems. Ald. D'Amato was inclined to support the eight-day proposal, but challenged DPW to respond to issues raised. He also requested them to provide scenarios if three or five or more crews were restored.
Ken Wischer, Local 423, thereupon expressed concerns regarding work performed by crews where jobs are contracted out. Shifting of assignments means that certain work is not performed in timely fashion.
DPW-OPERATIONS DIVISION---FORESTRY
Mariano Schifalacqua, James Purko, Preston Cole, Robert McFadyen, John Garland, Ken Ottman, Erick Shambarger & Jim Owczarski appeared.
Mr. Shambarger gave a budget presentation. Mr. Owczarski followed with the fiscal overview, distributing late information regarding Flower Bed Statistics received from the Budget Office and a map showing Proposed Flower Bed Retention and Eliminations. The Chair commended the Division for the improved citywide state of islands this past year. Mr. Schifalacqua conceded the proposal would change the appearance of these beds and would result in fewer mowings. A PowerPoint presentation showed the difference in boulevard plantings (proposed and existing). There would only be irrigation of flowerbeds, not full-turf areas. They would still be planting in 60% of the areas. Mr. Czarnezki confirmed to Ald. Hines that the Aldermen would be consulted in phasing out certain boulevard plantings. Low-maintenance perennials will continue to be used. The experimental use of “hard” medians was not totally successful. Ald. D'Amato suggested a “one-time hit” by converting the 40% of beds proposed to be eliminated to perennials. Mr. McFadyen confirmed that without both fertilization and irrigation, significant amounts of weeds and loss of turf would result in the medians. Fertilization was already eliminated 2-1/2 years ago. Ald. Hines was advised there would be Capital costs involved if planting beds were installed, as this would be a policy change. Forestry does respond to requests of community groups for flowerscapes. Ald. Murphy was advised the “Friends of Boulevards” signage proposal, where corporations might donate monies and generate revenues may come before this Committee this November. Mr. Morics advised revenue estimates could not be done in time for the 2004 budget. Ald. Murphy argued trees and plantings in boulevards add value to properties. Forestry disseminated the UW-M “City of Milwaukee Boulevard Survey”. Ald. D'Amato hinted at offering an Amendment to restore boulevard maintenance and plantings. Mr. Cole explained the training program for Arborists as well as duties of other staff and changes to a five-year pruning cycle.
Mr. Garland distributed a three-page handout “City of Milwaukee Forestry - What are we all about?” He cited problems, which could result from the proposed extended pruning cycle. He also lobbied for retention of existing personnel. The Capital Program in Forestry is financed through cash financing. Budget Office will review this and get back to Ald. Hines. Ald. Murphy questioned whether revenue could be projected from an intergovernmental agreement with Milw. County since they closed their greenhouses. Mr. Cole agreed this is an area which could generate significant revenues-will work with the Budget Office on a cost analysis and return to the Committee with a proposal. Mr. Ken Ottman, Urban Forestry Dist. Mgr., spoke to the issue of field managers being short of personnel during the peak periods of July and August. He suggested there would be a loss of well-trained individuals, which will be felt during storm seasons.
DPW-OPERATIONS DIVISION---BUILDINGS & FLEET SERVICES
Mariano Schifalacqua, James Purko, Venu Gupta John Garland, Patty Yunk, Patrick Hartmann & Mark Ramion appeared.
Mr. Hartmann gave the budget overview of the Division, and Mr. Ramion proceeded to present his fiscal review. Mr. Gupta addressed cost containment in all areas of the bureau. The Chair was advised that the elimination of many Auxiliary positions was merely a housekeeping matter since over at least ten years, most positions were never filled. There would be a total of 33 positions actually affected, with only two currently filled positions. Mr. Schifalacqua discussed the timeline for City Hall restoration-DPW interviewed & selected a consulting team and design has commenced. Contract letting should be in place next year, and this has been funded over several years, with only small funding anticipated in 2005. Ald. Murphy mentioned his request for an audit for the Third District Station. Ald. Hines was assured there would be proper oversight of any Capital projects. Mr. Gupta advised Ald. D'Amato that a priority system would dictate how repairs are effectuated. The division will continue to work on preventive maintenance, which will provide dividends in keeping safe equipment in use. Ald. Murphy was advised the $2.5 million was for design, site collection, etc. for relocation of the Tracer Yard-looking at the Port site, among others, which are centrally located. Ald. Hines was advised DPW has run the ADA Compliance Program for a number of years. The Environmental Remediation Program addresses asbestos/lead abatement and storm water best practice plans.
Mr. Garland spoke to the elimination of the Garage Attendant position, in view of possible increased work responsibilities due to other staffing reductions. Ms. Yunk agreed with Mr. Garland and spoke to the ripple effect of the loss of positions and questioned whether potential privatization was being considered. Ald. D'Amato was assured there was no budgeting for outsourcing. He also requested a priority list of the positions being eliminated, and Mr. Venu will supply same. Ald. Murphy expressed concern about delayed maintenance of vehicles, but Mr. Gupta noted parts are often hard to acquire in timely fashion.
Recess: 12:50 P.M. Reconvened: 1:35 P.M.
CAPITAL IMPROVEMENTS PLAN
Mariano Schifalacqua, John Ledvina and Angelyn Ward appeared.
The 2004 Proposed Budget for the Capital Improvements Project derived from all sources is $204,247,131 an increase of $20.162,798. 11% from the $184,084,333 provided in the 2003 Budget. Sources include city funds, e.g. tax levy, general obligation debt and special assessments. Grant and Aid funding, i.e. funding from state and federal sources; and enterprise funds, i.e., funds generated from revenues collected for a specific purpose. Special Projects - $10,325,000; Department of Administration - $630,000; Department of City Development - $23,950,000; Neighborhood Commercial revitalization - $500,000; Tax Increment Financing - $19,000,000; Development Financing - $19,000,000; Development Fund - $2,200,000; BID Districts - $500,000; Fire Department - $5,840,000; Health Department $1,240,000; Milwaukee Public Library - $2,000,000; Municipal Court - $250,000; Milwaukee Police Department - $6,510,000; Port of Milwaukee - $650,000; Department of Public Works - $58,073,250
Ald. Gordon asked about the shifting of resources from one category to another category. The capitol and operating are two different pots of money and it would be up to the council to recommend it. The City Comptroller strongly recommended not doing that.
Ald. Murphy stressed he wants to make sure that they talk to and take into consideration the needs of the neighborhood when they bid out the project in his area.
DPW-INFRASTRUCTURE SERVICES DIVISION
Mariano Schifalacqua, Jeffrey S. Polenske, Jerry Zaremba, Clark Wantoch, Thomas Bell, John Garland, John English and Angelyn Ward appeared.
Total operating expenditures in the 2004 Proposed Budget are $21,744,851, a decrease of $2,003,52 - 8.4% compared to $23,736,887 provided in the 2003 Budget. Capital improvement projects in the 2004 Proposed Budget total $30,629,185 provided in the 2003 Budget. Capital Improvement projects in the 2004 Budget each decision unit has personnel changes; however, the most significant personnel changes occur in the Street and Bridge Operations Decision Unit. The rate for assessable improvements levied on a property owner in 2004 will remain the same as 2003. The 2004 Proposed Budget projects that the Division will receive $2,965,500 in revenue. Other Major Projects include the completion of Park East Expressway demolition, and starting of the Marquette Interchange and the W. Canal Street - from N. 6th Street to Miller Park Roadway. 78 positions will be impacted. A good majority of them are seasonal and none of them will involve people being laid off. They have a number of crews that are being reduced. They have 2 mini concrete crews that are available and deal with smaller patches. Some patches will take longer to make a permanent repair. Ald. D'Amato asked when he could expect that the patches, which now take approximately two years to get done, will get done. Why not invest it now, so there is no backlog was asked by Ald. D'Amato. Mr. Polenske stated they would have to be a little more inventive to get these things done. We now have 3 crews and they would be eliminating one of the crack filling crews. Due to vacations or injuries, some crews get bumped off to work where there are more urgent projects. The biggest amount that the City gets from DOT is in the street-paving program. They are still building everything that was budgeted for. You will always have streets that are less than the optimal. They are looking at a program with a new type of light that will have cheaper energy costs. We now have 25 location signals that have LEB signal lights. They try to get streetlights replaced that have burnt out within a 24-hour period. If it is something other than the bulb, it takes around 3 days to get it fixed. In the group replacement program, besides changing the lights they clean out the entire system. There will be 19 less seasonal employees. 84 people they used to call back, in 2003 they called back 63 and plan on calling back 68 in Street Maintenance in 2004. In the underground cable we have some that are pretty old and are direct buried cable and it does wear out. Ald. D'Amato asked if they had a goal for cable replacement. The Commissioner said he would get it to him. John English stated they are behind in paving and it is not proposed to be made up this year. As we began this year, we held off calling back seasonal some 2 and ½ months. Mr. Garland stated the crews they have went from 4 to 3. The average seasonal employee has 13 or 14 years of coming back. He urged the Committee to take a good look and by removing these personnel is an injustice to the City and devastating to our taxpayers. The Commissioner of Public Works stated all the jobs that got delayed this year, will be taken care of next year.
DPW-SEWER MAINTENANCE PROGRAM
Mariano Schifalacqua, Erick Shambarger, Jeff Polenske, Martin Aquinos and Emma Stamps appeared.
The 2004 Proposed Sewer Maintenance Fund budget provides $45,665,233, a $582,826 or 1.26% decrease from $46,248,059 listed in 2003. No layoffs are planned in the Proposed Budget. Although several divisions under DPW are planning major re-organization or restructuring of duties and responsibilities in 2004, no such plans are scheduled for the DPW Sewer Maintenance Fund division. The 2004 Proposed Budget eliminates a net 11 authorized positions, most of which are vacant and unfunded. Eliminating positions normally result in cost savings; however higher budgets for Sewer Crew Leader I (PR 245) and Sewer Laborer II (PR 248) positions offset any cost benefit and result in a $249,523 net impact on total salaries. That is due to an adjustment to reflect true FTEs for these positions. Excluding salaries and wages, equipment, and special funds, the 2004 Proposed Budget provides $7,422,750 for Operating Expenditures, a $1,892,644 or 20.32% decrease from the $9,315,394 for 2003. Funding for the manhole rehabilitation project decreases by $1,130,000 to $670,000 in 2004, compared to $1,800,000 provided in 2003. Annual costs for clean fill disposal and debris removal continue to decline. Special Funds changes to $9,331,952 from $9,616,101 in 2003, a decrease of $284,149 or 2.96%. The Proposed Budget includes $4,200,000 for Payment to General Fund for street sweeping and leaf removal services. The 2004 Proposed Budget provides $21,500,000 for the Relay Program, an increase of $1,800,000 from the $19,700,000 provided in 2003. The Sewer Maintenance Fund will provide cash funding for 36.28% of the total 2004 Relay Program costs. The Proposed Sewer User Fee is $31,661,733, compared to $28,236,959 in 2003. The budget fee was calculated on the premise that water consumption will increase from the 25,452,460 Ccf budgeted in 2003 and that the sewer rate will remain unchanged at $1,1094 per 100 Ccf.
DPW-PARKING
Mariano Schifalacqua, Dorinda Floyd, Cindy Angelos, Thomas Bell and Jim Carroll appeared.
The 2004 Proposed Budget does not include any personnel changes to the Parking Fund Budget. It also includes $7.2 million for Professional Services and includes funding for the replacement of 7 jeeps and 1 power sweeper. It also includes $462,336 for the Parking Fund Contingent Fund. This is a $447,372 reduction from the $909,708 that was included in the 2003 Budget for the Contingent Fund. It includes a $10.9 million transfer from the Parking Fund to the General Fund. It is estimated that Parking Citation Revenue is $19 million, a slight increase from the $18.9 million included in the 2003 Budget. The DPW strategies for dealing with the large number of parking scofflaws were outlined in a letter, dated August 28, 2003, sent to the Common Council. According to the “2004 Plan and Budget Summary”, the City will issue RFPs in order to the sell the City's 4 parking structures, MacArthur Square, 4th and Highland and 2nd and Plankinton and 1000 N. Water St. DPW has made several enhancements to better serve the public. Many of the recent enhancements were outlined in a letter sent to the Common Council on November 27, 2003. The 2004 Proposed Budget includes $1,035,900 (not including $5 million for the Permanent Reserve Fund) for Parking Fund capital projects. Most of the efforts that they work with City Attorney and Municipal Court are to get people to adjudicate their tickets. There have been substantial increases in parking revenue. Ald. Murphy complimented the management staff of Dorinda Floyd and Cindy Angelos stating they have done a remarkable job. The Parking Citation Manager position was created about a year ago. They feel the decision making process is more fair and more consistent. They have a 2-month delay in getting an appointment with the Parking Citation Manager. Some people say the lady that fills the position is too tough and does not release tickets. They spend a lot of money on parking enforcement: Jeeps and parking enforcement. The supervisor for the Parking Citation Manager is Deputy City Attorney Linda Burke. Paperwork is prepared for the court. Dorinda stated they track all of their citations in terms of how many are dismissed. In 2001 when the Assistant City Attorney handled these and released 52,000. In 2002, after the Parking Citation Manager was hired, they dismissed 25,000 tickets and thus far in 2003, 5,400 tickets have thus far been dismissed. They tow people for unpaid citations, yet they come to the tow lot and pay the towing fee and none of the unpaid parking citations. Now they give them a summons and complaint and a court date. If they don't show up in court, the court has more tools that they can use. The court is the only place you can get payment plans. Juneau and Broadway lot was sold (MSOE) for $960,000 this year and $360,000 each year for the next 3 years. Structures are paid for out of the parking fund, so when they sold them the money goes back into the parking fund. We still have outstanding debt on the parking structures. DPW would like to sell the City parking lots, except the one on Michigan and Water, as we have a lease on that lot. They try not to hold vehicles for longer than 10 days that are towed. They want to put a kiosk in a high traffic area that will be able to dispense parking permits. It has to handle cash, credit card and check. It will be in English and Spanish. They have to put them in a high traffic area, so they can pay for themselves. The City of Chicago uses them for their water bills and citations. The police department now sells the parking permit. There will be transaction fees and the machine will cost about $20,000. For this to be cost effective, we need to partner with other entities. About 45% of the payments are made through the payment center.
DPW-WATER
Mariano Schifalacqua, Carrie Lewis, Dale Mejaki, Erick Shambarger, Patty Yunk, Emma Stamps and John English appeared.
The 2004 Proposed total source of funds for the Water Works is $107,862,899; (1) $63,222,899 in operating and non-operating revenues (2) $22,020,000 in deposits to Retained Earnings for Capital (3) $22,020,000 capital projects using retained earnings, and (3) $600,000 in out-of-pocket developer assessments. 2004 Proposed Budget reduces the total number of positions in the department from 382 in 2003 to 359, a decrease of 23 positions. The overall breakdown includes eliminating 99 positions and creating 76 new positions. Of those 99 positions eliminated, 36 adjust for 2003 budgeted reclassifications, 56 are vacant or will be reclassified during this budget process, and 7 will be laid off in 2004. The Water Works does not propose increasing water rates in 2004. The Public Service Commission authorized a 6.5% rate of return for the Water Works per PSC Docket 3720-WR-10 effective June 1, 2002. The water rates were implemented on that date. It is expected that the portion of City of New Berlin that lies east of the sub continental divide will begin receiving Milwaukee Water in 2004 or whenever their infrastructure is constructed and operational at no cost to the City. Our water utility is doing such a great job that they will be receiving a national award. Hawley Road water project should be 100% completed on the tank part in a week or so. Ald. Gordon asked how negotiations are going. Ms. Lewis stated she read in the paper that Germantown is not interested in partnering with the City for their water. There are around 600 water main breaks every year in the city of Milwaukee. Ms. Yunk stated that none of reclassifications have gone through the normal process of DER. | HELD TO CALL OF THE CHAIR | Pass | 5:0 |
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