Meeting of 1998-6-4 Special and Budget Meeting

Shanklin distributed information showing calendar year 1997 for Lakes & Lands. He reviewed it as follows: A column for April through September shows the following hours: Building maintenance 2172; ground maintenance 4,134; road maintenance 19; construction 46; conservation 33, for a total of 6,404 hours. Hours for the off season, October through March, were building maintenance 1,982; ground maintenance 1,618; road maintenance 37; construction 48, conservation 84, for a total of 3,769. Shanklin said the information came from a packet he received containing information the employees turned in from work sheets.

Shanklin asked what is meant by building maintenance. Dick Huck, Parks & Recreation Director, said it is the restrooms, houses and pavilions; houses are the Lake Lawtonka office and the Lake Ellsworth pavilion house. Building maintenance is the painting and repairs of those structures. Shanklin asked if we do as much in the winter as we do in the summer on this items. Huck said probably more in the off season.

Shanklin asked what is included in ground maintenance besides mowing. Huck said picking up litter, weed eating and erosion control. Shanklin asked about erosion control. Huck said if it is new construction, it would be under construction, and if not, it would be ground maintenance. Staff members submit a weekly listing of hours worked on the general categories. Shanklin said Henson said mowing stops September 30. Huck said that is correct 99% but there is always a need to do weed eating or clean out ditches.

Shanklin said too much money is being spent at the lakes in the off season and it should not be funded past September 30. He said the amount of camping fees received after that date should be reported and some of the camping areas should be shut down if not used. Shanklin said a dump truck was requested and the report shows 60 hours at the most on road work; less than 100 hours are shown on construction and not all of them can put down eight hours a day on building maintenance during the winter. He said Council could not cut other budgets and ignore this.

Purcell asked if some hours were missing. Huck said sheets are turned in for the full time staff for accountability; there are three full time maintenance persons, the clerical person, and the lake superintendent. The superintendent does not turn in a daily log. Huck said during the off season, an equipment operator may collect camping fees and his time would be reported accordingly. Shanklin said there were five or six of those. Huck said the superintendent may also collect camping fees if no one else is available to do that.

3. Pursuant to Section 307B.2, Title 25, Oklahoma Statutes, consider convening in executive session to discuss the negotiations for a Collective Bargaining Agreement for FY 1998-99 between the Police Union, IUPA, Local 24, and the City of Lawton, and, if appropriate, take action in open session. Exhibits: None.

Schumpert said information was distributed on departmental initiatives and Council had addressed them. A booklet had been distributed showing a 4.5% reduction. The Health Department sent a letter responding to staff discussion with them. Staff was requested to provide a listing of current and anticipated vacancies and associated costs. There was an employee initiative from the Police Department suggesting a charge for records checks and police reports; based on the current rate of request, anticipated revenue would be $39,000. Schumpert said a sheet was distributed showing budget summary to date containing changes in estimated expenditures, $10,000 savings from mowing; changes in estimated revenues, and unfunded budget requirements.

Schumpert said one initiative was the court would be able to go into the juvenile system, and said if they get the part time position this year, which they did not fill last year, that would be all they would need. He said part of the 4.5% reduction from the court was that position, so you cannot both approve the initiative and the 4.5% reduction.

Schumpert said the cost of Flower Mound Road would be $115,000; projected costs for the Geronimo water line, where Geronimo would pay for an eight inch and Lawton would pay for the difference between an eight inch and a larger line, the rough estimate of cost is $300,000. He recommended those projects be funded from the 1995 CIP. Schumpert said discussion had been held that all remaining funds in the 1995 CIP be used toward the second year sewer funding, and these projects would take a part of that funding. Schumpert said if 1995 CIP is not the preferred funding source, those amounts should be added as unfunded requirements in the budget.

Williams asked if funds remain in the 1990 CIP. Schumpert said no, there are no funds which have not been encumbered toward a project. Williams said he remembered $75,000 to re-roof a fire station. Schumpert said the Fire Chief included that as his reduction; $80,850. Williams asked if the 1990 CIP money was used as part of the 4.5% reduction. Schumpert said the Fire Chief had $80,850 in his budget, and asked if $75,000 was for Station 5. Barrington said yes. Schumpert said if you do not roof the fire station, you would have $75,000.

Purcell said Council received information that $3.2 million was remaining in the 1995 CIP after the first year cost had been deducted. Livingston said the last number he recalled, after funds had been set aside or encumbered, it was $500,000. Livingston said some had been earmarked but not encumbered.

Schumpert said the amount shown on the sheet for existing and anticipated vacancies is the number if the positions are not filled for six months. He said the Finance Director realized there are historically 20 vacancies a month and based on that he reduced the preliminary budget by $500,000. Schumpert said for the purpose of the budget, 20 positions are considered to be vacant throughout the year and if you vacate these positions for an additional six months, you would have to have a vacancy rate of 40 to 50 positions. He said the vacancies had already been included in the budget.

Powell asked if the City is charging for records checks done by the police now. Bill Adamson, Police Chief, said that is correct. Powell asked if that is a cost to the City. Adamson said yes, the time of the employee, copy paper, mailing costs, computer time, etc. Consensus was to bring back an agenda item to impose the fees. Powell suggested other cities be contacted in regard to their charges. There would be no charge for other governmental agencies. Cruz said the Open Records Act sets a maximum on the limit that can be charged, so you may want to charge $5 but you cannot exceed a certain amount. Adamson said the Act sets a limit on police reports but does not talk about records checks.

Purcell said the viewgraph in the Chambers is old and a new one is needed for $500 or $250, and the elaborate machine shown was not his intention at $8,000. He said museum asbestos at $283,000 had to be done, as well as the fuel storage tank removal for $120,000, and the Republic waterline cost of $45,000; these are mandatory and the other two should be discussed.

Williams asked the City Attorney to address the RIF payment to the museum employees. Cruz said the City Code requires that when employees are laid off, such as with the museum employees, they are entitled to receive 90 days’ severance pay. Cruz said the options are to take the money up front upon being RIF’d and when the employee gets that payment, they lose options such as first right of re-employment. Another option is for the employee to continue to stay on the job for a period of 90 days and continue to draw his salary. Cruz said with the museum, it appeared the most likely option would be for the employees to receive 90 days’ severance pay, which equates to $71,000. He said museum employees need to be paid the severance and all ten employees have opted to receive the severance pay up front. Smith asked if the City has to pay them and Cruz said yes. Shanklin said they are not losing their job. Cruz said they are RIF’d employees under the definition in the Code because they are being laid off because they will no longer be working for the City.

Sadler said in all the discussions that had been held, he had never heard that brought up until this moment. Beller asked if those same employees will go on the payroll of the museum authority effective July 1. Cruz said yes, assuming these employees will be hired by the authority.

Warren said he did not have a problem paying an employee who is actually RIF’d from a position and had no position to go to. He said the museum employees would experience no loss of pay and that he had a real problem with this. Warren said he agreed it was the law and asked if the funding could be taken from the museum budget. Sadler said if the authority could have the employees work for three months with no pay, it would all be the same. Cruz said a possible solution to insure the employees do not get a "double dip" from the City funds is to condition the grant to the authority that their funding may not be used to pay compensation of those employees hired at the museum and receive their pay from the City, meaning the Authority would have to go to other sources to pay the employees for 90 days, and perhaps the Institute could assist. Williams said he was not enthusiastic about it, although the employees are, but the museum started at $511,000, then with the 4.5% reduction, and now the salaries, it will have an impact on the operation.

Powell asked if the employees have been RIF’d by definition. Cruz said they have been notified they would be RIF’d as of June 30, yes. Powell asked if the City Code requires that 90 days’ severance pay. Cruz said yes, they can elect to get it up front, and if that is done, the City has no duty to re-employ them. Cruz said the bottom line is the employees get their pay. Powell said you cannot circumvent the requirement and it should not be taken away from the museum due a code the City has. Purcell said there had to be some way around this because the intent was if you RIF an employee who goes out on the street, you pay them severance pay and that is right, so if employees are being RIF’d and not hired by the museum, severance is appropriate. Purcell said he had a real problem paying them and turning around and paying them again, so we are basically paying them twice, with the only difference being the check will be written by the Museum Authority on July 1 but it is from money provided by the City, and something is wrong with that.

Cruz said he had given it a lot of consideration and this is what the City Code provides. He said the Council can change the code next week but would face a lawsuit because the people have already been notified and have exercised their option to accept payment up front and the ordinance should not be changed during the transition.

Beller said an increase in landfill fees is shown, and Council tabled it on May 12 to an indefinite date but it is on Tuesday night’s agenda. Shanklin said he recalled the reason was to allow commercial haulers to give notice to their customers and that it was to be effective July 1. Schumpert said the agenda item provides for an effective date of July 1, and the question on an estimated revenue increase is how many will no longer use the landfill if the fees are increased. The $600,000 estimate of increased revenue is based on 11 months and the possibility that some may no longer use the landfill.

Purcell said Council passed a motion to increase commercial landfill fees; the issue was returned because the effective date of July 1 was needed; then the issue came up on fairness regarding the City’s rates. He said he made a motion to cancel the original increase in commercial, and understood it would be brought back to increase commercial, as well as the City’s rates, both effective July 1.

Beller said he was concerned about being able to receive input from those who will be affected and the fact that it is now set for consideration again. Shanklin said we have been giving away the landfill for the last three or four years and it is not fair to Lawton residents. Schumpert said it was his understanding that the complaint was not the amount but the date to allow for them to make adjustments and for the City to change its rate so it would be more fair to everyone.

Beller said he and Powell discussed having a governmental rate to cover the schools. Warren said the City does not haul the trash for the schools. Beller said it is hauled by a commercial firm but that firm will have to charge the schools, and the hospitals may be considered also. Purcell said the budget goes into effect July 1 and the anticipated revenue is a part of that budget. Smith said he received two calls from the previous action regarding the fact that the City had not raised its rates and the companies had not been given adequate notice, and they did not have a problem with the price.

Purcell said $39,000 should be added to revenue due to the police records check initiative. Williams asked if the Open Records Act allows for that. Powell said the figure provided may be minimal. Schumpert said the Police Chief did not talk to the City Attorney or City Clerk regarding the Act applying to the fee. The City Clerk said she felt it would be appropriate taking the computer time and expense into consideration.

Purcell said the list of vacant positions had been provided and he would remove the City Attorney’s position as one that should be left vacant. He said $229,000 would be gained if the other positions are not filled for six months, and that is additional money. Schumpert said the comment ignores the fact that the Finance Director has taken $500,000 out of the budget for this very reason. Purcell said there will be other vacancies throughout the year. Schumpert said it had been accounted for in the budget. Purcell said a hiring freeze could be put in place for six months and the City Manager could fill a position if it is critical. Beller said you would lose services. Powell said the City Manager would have the flexibility to determine if it was a key position. Schumpert said Council may not agree with his decision.

Williams said every time Council mentions reducing staff positions, the same response is received. He said the departments may be forced to find ways to provide the services, and to say the level of services will be diminished, that would not be known until it happened. Williams said the City has a resourceful staff and citizens would likely not notice a great decrease in services. He said it was a fear tactic frequently used in discussing reducing positions.

Shanklin reviewed various items included in Fund 35 and stated the items were funded but not done, and some are not out for bid. He said the lakes funding was not spent last year but they are requesting an additional $50,000 this year. Schumpert said Fund 35 is the legal method of keeping funding available for projects that Council has approved; if Council desires to change it, that is possible. Schumpert said the City does not have adequate staffing to carry out each project within the time required to spend the money.

Williams asked where $87,848 is in Fund 35 for the underground storage tank. Jerry Ihler, Public Works/Engineering Director, said the amount was first established to do the tanks at the police station, wastewater treatment plant, and lake ranger station; original amount was $100,000 for the removals and consulting fees. Ihler said those projects were finished, and the engineering contract was amended to remove the tanks at Schoolhouse Slough, which has been done, as well as engineering on the tanks at the Public Works yard. It is not known if remediation will be required on the Schoolhouse Slough tanks. Ihler said if that is not too costly, the remainder of the funds could be used for the Public Works yard tanks.

Purcell asked if all tanks had been removed and paid for except the one at the Public Works yard. Ihler said yes; Schoolhouse Slough has been removed but the case is not closed and the major cost would be for remediation. Engineering fees have not yet been paid on Schoolhouse Slough or the Public Works yard.

Purcell said some of the 4.5% reduction items are ridiculous, and some are due to the structure of the department and come into play with an across the board cut. He said the reductions include a large amount of equipment to the point where it would impact the $3 capital outlay surcharge, which he would not support. Purcell said $782,000 would be generated by changing from 3,000 gallons per months to 2,000 gallons in water sales, and perhaps that should be considered. He said closing a fire station should not be considered.

Schumpert explained the budget process the staff goes through to produce a preliminary budget, to include reductions in requests. He said the budget could be adjusted to reflect the level of service desired. Schumpert said he understood he was under criticism for not "balancing" the budget, and that if he were asked what to cut, he would close the fire station as suggested, but Council indicated that was off limits. He said he would recommend once a week trash pick up, but that is off limits, and that he would not make accommodation for other governmental entities because they make none for the City, and both should charge the other and do business at arms length. Schumpert said he would charge fees in the Code Administration area that are at least the same as those charged by the cities we are constantly compared with, but we do not want to do that. He said Lawton has 100 employees less than other cities this size in Oklahoma so we are not hiding people anywhere. Schumpert said everyone was looking forward to the Parks & Recreation budget and the entire change in the whole department was to move $1,000 from overtime to a part time position, and nothing else was touched. He said one department came in lower because a number of senior people left and others were hired in at A Step.

Schumpert said there is no increase in 200 or 300 accounts in the budget, and the total increases are due to Councils’ actions. He said if Council wanted his recommendation as City Manager, it is the budget he presented to keep the same level of service but it will require additional revenue. Schumpert reviewed various items in the budget he felt Council would say were off limits to cut.

Williams said the pending sewer problem was one reason for the Council’s desire to not raise the utility rates for the budget. Beller said a funding increase is required to take care of the budget and utility rates would have to be raised. Purcell said $500,000 has been brought forward through discussions held so far, and discussion was held on sales tax projections for the coming year in light of large businesses being in operation or under construction. The Finance Director will examine sales tax projections to determine if the level is appropriate or if it could be realistically increased a small amount. Smith said staff spends a tremendous amount of time and effort on the budget and the City Manager had done a great job and taken a lot of bashing.

Shanklin said he felt 3% could be reduced from the budget. He said the mowing was awarded and $94,000 is over half of the time spent by the group, yet the budget is $394,000. He asked what would be done with the other $300,000, and said that was his point. He said he would not vote to raise utility bills until such items are addressed.

Williams said revenue projections should not be increased to an uncomfortable level because unexpected expenses come up and funds must be available to operate the City. He said cuts could be made in capital outlay and personnel. Green suggested Council be given time to consider comments and information distributed.