MINUTES

FINANCE COMMITTEE MEETING

Tuesday, February 28, 2006

City Hall, Room 604

Immediately following Personnel which meets at 5:30 p.m.,

5:45 p.m., whichever is later

 

MEMBERS PRESENT:  Chairman John VanderLeest, Vice Chairman Tom Weber, Fred Graves, and David Nelson

 

MEMBERS EXCUSED:  None

 

OTHERS PRESENT:  Mayor Schmitt, Jerry Hanson, Doug Daul, Chief VanSchyndle, Chief Stauber, Dave Nennig, Chad Weininger, Linda Dupuis, Media, Recording Secretary Ginny Mamrosh, and others

 

After the Personnel meeting had begun, it was decided to suspend that meeting and have Finance address Items 1, 2, 3, 6, & 7 to allow persons in attendance to be heard in a timely manner.

 

1.   Roll Call.  

 

Chairman VanderLeest called the meeting to order.  Roll call was taken, and all were present.

 

2.   Approval of the Agenda.

 

A motion was made by Ald. Weber and seconded by Ald. Nelson to approve the agenda, with Item # 6 to be taken out of order, after Item #3.  Motion carried.

 

3.   Approval of the minutes of the Finance Committee meeting of February 14, 2006.

 

A motion was made by Ald.Graves and seconded by Ald. Weber to approve the minutes of the Finance Committee meeting of February 14, 2006.  Motion carried.

 

Items #6 and #7 were taken next:

 

Following Items #6 and 7, the Finance meeting was suspended to return to the Personnel Committee agenda.  At the close of that meeting, Finance resumed with Item #4.

 

4.   Requests by the Finance Director for the following:

      1.  To present the Spring bonding requests

      2.  For a State Trust Fund borrowing

 

Finance Director Doug Daul explained that the first item has been withdrawn by Mayor Schmitt and will be brought back in two weeks.  The bonding request will be presented at the next Finance meeting, with the initial resolution to come to Council on Tuesday, March 28 (the meeting normally scheduled for March 21 has been changed to Tuesday, March 28). The sale will take place the following week, on Wednesday, April 5. 

 

Ald. VanderLeest referred to the request for a ground shelter structure at Fisk Pool, for $2.9 Million, with the Mayor’s recommendation at $2.5 Million.  Bonding a full $3 million had been discussed, ignoring funds already raised; Ald. VanderLeest asked for clarification on this issue.  Ald. Graves said the amount raised is not all cash; some pledges may not be available for three to five years.  Mr. Daul said some of these numbers have changed; he said the City would fund a part of that project in advance; proceeds from donations would be expended when they come in.  Ald. VanderLeest also asked that Mr. Daul provide information on how much debt is being paid out this year, and how much will be taken on. 

 

A motion was made by Ald. Weber and seconded by Ald. Nelson to hold Item 1 until the next Finance meeting.  The motion carried.

 

2.  For a State Trust Fund borrowing

 

Mr. Daul said he brought this forward tonight only because he must have a resolution for the next Council meeting.  The term sheet for this $800,000 borrowing for APAC was approved at the November 15 Council meeting. A recommendation from this Committee is not necessary, but Mr. Daul wanted them to know what was coming up for the next Council meeting.  The $800,000 borrowing will be a TIF grant to Smet Construction that will be repaid through TIF proceeds.  If the increment falls short of the debt service payment, the developer must make that payment.  He said the wording of the resolution comes from the State of Wisconsin. 

 

A motion was made by Ald. Weber to approve the State Trust Fund borrowing.  It was seconded by Ald. Nelson and carried.

 

5.   Request by the Police Dept. to authorize lease renewal at Joannes Community Police Center.

 

Police Chief VanSchyndle said the Wisconsin Dept. of Corrections has been leasing office space at the Joannes Center for the past five years, and they asked to continue for another five-years.  There has been a 3% increase each year since the lease began, and it has been reviewed by City Atty. Jerry Hanson.

 

A motion was made by Ald. Weber and seconded by Ald. Nelson to approve lease renewal at Joannes Community Police Center.  The motion carried.

 

Item #8 was taken next.

 

6.  Consideration of the action by the Transit Commission to give the option of extending paratransit service through the entire City of Green Bay if the City agrees to fund 100% of the additional cost for 2006. 

 

A motion was made by Ald. Graves, seconded by Ald. Weber, and carried to suspend the rules to allow interested parties to speak.

 

Melinda Winter of 3530 Golf Drive said she was diagnosed with multiple sclerosis at age 20.  Despite this, she graduated from college with straight A’s and earned a Master’s in Criminal Justice.  Shortly after returning to Green Bay, paratransit services were cut to about 500 feet outside the new service area; she said this move has placed severe limits on her life.  Ms. Winter said she lives in the City limits of Green Bay but is now unable to look for employment, volunteer, or engage in political activities, or do many activities normally taken for granted.  She said that, as a resident of the City, she has the right to basic services such as paratransit, and that this need is more critical than some other items in the budget. 

 

Ms. Winter asked how many people had previously been in the service area but no longer are because of the cut.  She had been told that no one was cut out of the paratransit area -- those who were eligible before the change were still eligible -- it was only the service area that was cut back.  She said the change does cut out people such as herself, however; although she is still eligible for paratransit, she is no longer in the service area.  She asked that paratransit be funded for the entire City of Green Bay. 

 

To Ald. Graves’ question as to whether she has any other source of transportation, Ms. Winter replied she took a cab to this meeting, the cost was $18 one way.  She does live with someone and does occasionally get rides, but cannot expect persons who have jobs of their own to take her wherever she needs to go. 

 

Jim Riopelle of 854 Edgewood Dr. said he spoke on behalf of Ms Winter and others who are physically or mentally challenged.  He said anyone present tonight could have needs such as these in coming years and that we need to look at where we are as a community and find a way to help disabled people help themselves. 

 

John Delwiche of 2602 Beaumont St. said he looks at this issue from a human services transportation standpoint.  His calculation, from looking at a Transit map, shows there are 45 people living outside the ¾ mile coverage area and said that number will increase if this policy is continued; it can affect all of Brown County.  Mr. Delwiche said it would be a serious mistake to ignore this issue.

 

Taku Ronsman, 1688 Beaver Dam Dr., said she has heard all the reasons why there are no funds available for this program, the primary reason being reduced State funding.  She said the citizens of Green Bay count on the people who are being paid to represent them to look out for them, and to find new revenue sources.  She said this is a basic need that must be met and requested that funding be put back for the rest of 2006.  Ms. Ronsman asked that the Committee be more creative in coming up with a long term solution for both paratransit and regular bus service so the entire City can be served by the bus system.  She said ridership would increase if buses ran on Sundays and later at night.  Ms. Ronsman said the City should modernize and promote ridership, but that the issue now is paratransit.

 

Ald. Weber said he has struggled with this issue, trying to balance the concerns of all taxpayers with the needs of some taxpayers.  Issues arise in all departments, and there is no doubt the need is there, but he said it is hard to balance that need.  People who are overtaxed leave the community, and the problems keep multiplying.  The Federal government requires that we provide service within ¾ of a mile of bus routes; we had provided it to three miles.  He asked help in determining the number of miles it should be provided to -- one mile or 10 miles?  Ms. Winter said the number for Paratransit should be the City limits; the Committee does not represent Bellevue, Howard, and the other municipalities. 

 

Transit Director Dave Nennig said Transit serves Green Bay and four other communities; Ms. Winter replied that service expanded to City limits does not have to be extended to other communities.  Mr. Nennig said each community pays a portion of our local share, based on their level of service.  The Transit system must provide service to the urbanized area of neighboring communities who want the service and are willing to pay their share.  Green Bay does not pay for the miles of service in other municipalities.  Mr. Nennig said it is difficult to get everyone to agree on this funding; it is an issue every year. 

 

During preparation of the 2005 budget, it became obvious that inequities had developed over the years in the amount each community was paying toward paratransit.  When the program began in 1994, there were 18,000 rides per year, mostly in a contained area, but as sprawl developed, there were more services further out, resulting in increased expenses because of the extra time and fuel required for the trips.  A special committee was set up at that time to look at alternatives, and the consensus was that, rather than substantial increases in funding that the communities said they couldn’t afford, going to the ¾ mile required by law was more acceptable.  The other communities accepted the ¾ mile change and looked at alternative programs.  Mr. Nennig said if our program didn’t transport, many could use Brown County Human Services or the Red Cross Program.  These communities were also looking to the future; they knew their communities were growing and that they couldn’t afford the increases in the future. 

 

Mr. Riopelle asked if committees are chosen to work on matters such as this, and volunteered his help.  Mr. Nennig said the special committee was comprised of people from different agencies in the community, all volunteers, and some who served on the Transit Commission.  There is also an Elderly and Disabled Transportation Subcommittee of the Brown County Plan Commission comprised of persons from different agencies who meet quarterly to discuss these issues, but no solution for additional funding has yet been found.  The County’s SS 85.21 Program shows a 36% increase in State funding; this goes to the Red Cross program that uses volunteer drivers and serves many people.  It is offered as an alternative to places where Transit does not go.  Ms. Winter said she appreciates the efforts of the volunteers with those alternative services, but said they cannot meet all needs.  She said she pays taxes to Green Bay and asked that they look to serve their own citizens. 

 

Tracy Belongia, Director of Transportation for the American Red Cross said there is definitely a need for Paratransit service outside the ¾ mile boundaries, but said that, had the ¾ mile boundary been set when Paratransit began, it may not be an issue at this time.  Because it was expanded as a bonus, people chose to live in certain areas because that transportation was available.  Ms. Belongia said Red Cross is an alternative to a certain extent, but they are a totally separate entity receiving many sources of funding in addition to the SS 85.21 grant funds.  The service they provide is a lot shorter and is available Monday - Friday, 8-4:30 only.  She said they do take medical and nutritional needs first on a first-come, first-served basis; they also transport persons to the bank, hairdresser, etc., with a 2-day advance notice. 

 

Ms. Belongia said the organization will service anyone they possibly can, and everyone over 60 automatically qualifies.  Those disabled and under 60 must be certified and qualify.  Persons affected by the Paratransit cut are not automatically qualified for Red Cross services, but they do whatever they can to transport everyone.  She said there has been a dramatic increase in the number of requests for services since the paratransit change, but not in the number that actually use the service because of the restricted hours.  The number of trips has also increased since the change, and they now go farther toward the outskirts of town, but they are limited to the number of vehicles and drivers available.  Trips are scheduled for every half hour, and they take them wherever they want to go within those time constraints.  If someone needs to go to the far outskirts of Brown Co., that need is posted and will be met if a driver is available.   Ms. Belongia is part of the 2011 Committee that was formed to consider how to address the needs of the many Baby Boomers who will reach that age at about the same time.  The committee is gathering information at this time.

 

A motion to return to the regular order of service was made by Ald. Weber, seconded by Ald. Nelson, and carried.

 

Ald. VanderLeest said neighboring communities may need to be approached again in an effort to close the gap existing between costs of services provided as compared to what they are reimbursed.  Mr. Nennig said they did get sizable increases from those municipalities this year.  He explained that other issues are involved in addition to the budget shortfall.  When Transit extended fixed route service into a community in the past, Paratransit was extended through the whole community.  A policy showing a well defined service area must be in place because of growth in other areas.  Howard has requested transit services several times, but under the old policy, a short route into Howard, such as to Woodman’s, would extend paratransit through the whole village, putting a tremendous cost burden on the whole system.  Mr. Nennig said other communities may need these services as they grow, and it didn’t make sense to continue the old policy because it would not be affordable in the future.  They could have cut fixed routes or eliminated evening or Saturday service, affecting thousands; they looked at what affected the fewest people. 

 

Ald. Weber commented this is not a government problem but a social problem of the citizens who are the taxpayers; they are also the government.  Dollars cannot be magically created – they scrape for them.  He sits on a task force with realtors, developers, and homebuilders who say they will leave the City because they can’t afford to do business here.  If they and other citizens leave, there are no tax dollars left to cover these critical needs.  Many services are very important, but a serious budgetary issue exists.  He asked for patience and support of the citizens and for any suggestions they may have as to how to fund this service.

 

Mr. Nennig said 2,500 people are certified as eligible for the Paratransit program but a total of only 400 people used the program in January.  The bill to serve these 400 users was $95,000 in January, for a total of 6,707 trips made.    We pay $17.65 per trip, plus a fuel escalator based on the cost of fuel over $2 per gallon.  Many trips were to Human Services programs such as Curative, Senior Center, the CP Center, etc., and many persons go round trip every day, at $17.65 each way, each day.  Mr. Nennig said there has been a 250% growth in nursing homes using Paratransit rather than having their own vans to transport their residents.  18,284 trips were taken in 1984, as opposed to 100,600 in 2004.

 

Mr. Nennig said he determines eligibility following Federal guidelines, but said an outside firm is used to evaluate the functional ability of applicants when necessary.  People were certified for the program before the buses were accessible, and became dependent on it.  The policy now is that anyone able to use the regular bus is not eligible for paratransit.  Applications are reviewed again when eligibility comes up for renewal.  Riders will be taken to any place in the service area; Federal standards say riders should be able to take paratransit to anywhere a bus goes.  As fixed-route services expand, paratransit will expand as well.  Paratransit will pick up and take riders anywhere within that ¾ mile area.  If the origin or destination is outside the ¾ mile, the trip is not eligible. 

 

The American with Disabilities Act was passed in 1991 and required all buses to be accessible.  In addition, Transit had been providing only fixed-route services, but ADA required all individuals who couldn’t use regular fixed route buses to be provided with an alternative form of transportation.  A Federal training instructor commented that paratransit was never intended to serve all needs of all disabled individuals.  Its purpose was to be a safety net for a level of service comparable to fixed route service. 

 

Ald. Graves asked if Ms. Winters could be eligible for transportation by a cab company since she is able to use that form of service.  Mr. Nennig said some systems do have two levels of service, but the entire roster of 2,500 people would have to be reviewed to determine which persons would use which service.  Systems going to that option have not seen tremendous cost savings.  Some systems also have their own Paratransit vehicles – we would need a fleet of 22 to 26 vehicles; Medivan has 29 vehicles.  Ald. Graves suggested seeing what kind of arrangement could be made with a cab company and asked if the contract can be divided among vendors for different levels of transportation.  Mr. Nennig replied that once the contract has been awarded to one vendor, that vendor can then use others.  He said he could not put out requests for bids without reviewing all applications because bidders would need to know how many trips they would be responsible for.  He said all 2,500 have never been reviewed at one time – they expire at different times and are reviewed then – they are not prioritized as to equipment needed.  He said when a new application comes in, he can review it and determine the level of service, but does not have time to review all applications at one time. 

 

Ald. Weber made a motion to refer this issue to staff to identify the number of people affected; alternative sources, uses, or changes in the program, present and future; and the cost of each so a rational decision can be reached.  Ald. Nelson seconded the motion.

 

Ald. VanderLeest thought other communities should be contacted again to see if they would participate more fully in the program, but Mr. Nennig said the current program is a fair one and that a study was done in 2004.  Ald. Weber suggested using that 2004 study as an example, and deriving a probable cost from that, as well as looking at all other possible alternatives.  Mr. Nennig said the current paratransit service contract ends in July, and is being rebid; at that point he’ll have a better idea of the cost for the next five years. 

 

A motion was made by Ald. Graves to suspend the rules to allow interested parties to speak.  It was seconded by Ald. Weber and carried. 

 

Ms. Winter said Medivan keeps records of whether or not a rider needs a wheelchair, and Ald. Graves suggested Mr. Nennig ask for that information from Medivan.  Mr. Riopelle said he is willing to help get these records together.  Mr. Nennig said proposals must be gotten quickly so the contract can be in place by July and that applications are governed by confidentiality.  He didn’t think much would be saved by bidding it out differently.  He said the Brown County Commission on Aging will conduct a study of elderly and disabled transportation needs both now and in the future, countywide, and will come up with recommendations.  He said we should be part of that, not duplicate it. 

 

Ms. Ronsman said they are still focused on a long-term solution, instead of for a short-term fix; she said Ald. Graves is coming up with creative ideas, and that they are willing to help work toward a long-term solution.

 

A motion was made by Ald. Weber, seconded by Ald. Graves and carried to return to open session.

 

Ald. VanderLeest said it was worth a try to approach other municipalities again to see if they would pick up their costs if the ¾ mile area was reopened, but agreed to look at that in the future.  He thanked all for coming and giving input, and said the issue will be studied and hoped a solution could be worked out in the future. 

 

A vote was taken, and the motion carried.

 

Item #7 was taken next.

 

7.   Request by Attorney John Gower to object to a continuation of the City towing contract with Crosby Heavy Duty Wrecker Service.

 

Mr. Gower said on September 2, 2005, his pickup truck was “t-boned” at an intersection and tipped over; he had to be removed through the windshield onto a back board.  He was told only that his vehicle would be on Velp Avenue and was not given a choice as to the wrecker service picking it up.  He later found that it was picked up by Heavy Duty Wrecker Service and was treated very well by Steven Crosby, owner of the service, and other employees present when he went to retrieve belongings from the truck.

 

Upon returning at a later time, Mr. Gower said he was confronted by an employee who treated him in a threatening manner, approaching him with a club and threatening to throw him off the premises.  He returned the next day to speak with Mr. Crosby and the employee involved, who said he was doing what he was told, in terms of conduct.  Mr. Gower said he has doubts about Heavy Duty continuing with the City tow contract if that is how their employees are instructed to act.  Contract holders should require their employees to hold to a standard of conduct when dealing with the public.  He said he had no objection to the continuation of the contract if this particular was no longer employed by the company, but did want to object if he is still in their employ. 

 

Ald. Weber said the issue of having a code of conduct had come up at an earlier meeting, and asked if anything prevented asking for a code of conduct in the contract with any vendor or company acting on behalf of the City.  City Attorney Jerry Hanson said this request could be put into the contract or proposal request; vendors could agree or not.  Ald. Weber said that is an issue for the future.

 

Purchasing Agent Linda Dupuis said she knew of no ordinance regarding this issue, but said that City has a 30-day exit clause in most contracts, including this one.  If there are complaints, the vendor is given a chance to make it right.  If they do not, she goes to the Law Department, and they may exit the contract.  She said in most cases, this kind of issue can be resolved through the Purchasing Office. 

 

A motion was made by Ald. Weber, seconded by Ald. Graves and carried to suspend the rules to let interested persons speak. 

 

Steve Crosby, 1500 Velp Ave., said he owns Crosby Heavy Duty Wrecker Service.  He expressed regret over the incident and said the person in question was no longer employed by him.  He does not condone that kind of conduct; this company has been around for 65 years, and has long-standing relationships with many dealers.  Mr. Crosby said he tries to police his company as well as he can, and did correct the problem as soon as possible. 

 

Mr. Gower said he will not object to continuation of the contract, but thinks the larger question regards having language in the RFP specifying a simple code of conduct for those vendors who meet the public while representing the City. 

 

Mayor Schmit said this was like writing common sense into the contract -- you need to treat people with respect and wording could be put in to that effect.  He said a single problem may not automatically void a contract; and he would want to know what the next course of action would be if a problem did arise.  He said the City has a process that is followed to correct problems with employees, and having a policy that would immediately void something over a single incident should be discussed. 

 

In the six years Ms Dupuis has worked with Crosby’s Heavy Duty contract, she has had no complaints from any customers prior to this.  She said it is important to have a fair process in place with all City contracts.  When she sets up a new contract, someone in the department is designated as the contract administrator; this person resolves the majority of problems.  If the dispute isn’t resolved, Purchasing gets involved, and if they still have problems, Law is approached.  This process works very well to assure that the City gets what it is paying for.

 

Mr Gower said he is satisfied.  Ms. Dupuis said that because of this issue and the issues brought up by Ald. Nelson, she has asked both current contractors for a 60-day extension to allow more time for a thorough review of the contracts.  The actual award will come before Committee.

 

A motion was made by Ald. Weber, seconded by Ald. Graves and carried to return to the regular order of business.

 

A motion was made by Ald. Graves, seconded by Ald. Weber and carried to receive and place on file the request by Attorney John Gower to object to a continuation of the City towing contract with Crosby Heavy Duty Wrecker Service.

 

The meeting of the Finance Committee was suspended at this time to return to the Personnel Committee agenda.

 

8.  Report of the Purchasing Agent:

 

      1.  Elevator Upgrade  --  To Kone, Inc. for $15,000

 

      2.  Fire Rescue Equipment – To TNT Rescue Systems for $33,195 and Safety First for $7,800, for a total cost of $40,995.

 

      3.  Consent Items:

 

      a)  Bay Beach Pretzel & Popcorn 3-year contract:  Valley Popcorn for $10,833 and Badger Wholesale for $9,932; total 1st year estimated cost:  $20,766.

 

      b)  Bay Beach Groceries 3-year contract:  Badger Wholesale for $20,990 and Valley Popcorn for $2,655; total 1st year estimated cost:  $23,645. 

 

8.1.  Ms. Dupuis said this company is significantly lower in price than the next lowest bidder, but that the quality and references are acceptable.  She said the elevators could prove to be a risk and are in need of an upgrade.  A motion was made by Ald. Weber, seconded by Ald. Nelson, and carried to approve 8.1 Elevator Upgrade to Kone, Inc. for $15,000.

 

8.2.  Chief Stauber said this is part of the FEMA Assistance to Firefighters grant they received last year and is the low qualified vendor.  “Jaws of lifeÒ” type equipment is being purchased, although not that particular name brand.  TNT rescue systems are made in Wisconsin.  Firefighters tried out four or five different brands, and found none that were unacceptable.  Ms. Dupuis complimented that department for testing and approving several manufacturers’ equipment prior to quoting to obtain the most competitive situation.

 

Ald. Graves asked why an individual price from one vendor was $8,200 while the others were much less, at around $2,600.  Ms. Dupuis said she would check to see if this was a typo, and if so, would purchase from the low vendor without coming back to Committee.

 

A motion was made by Ald. Weber and seconded by Ald. Nelson to approve 8.2.  Fire Rescue Equipment to TNT Rescue Systems for $33,195 and Safety First for $7,800, for a total cost of $40,995, with acceptance of the low quote on the stabilization kit.

 

8.3a:  A motion was made by Ald. Weber and seconded by Ald. Nelson to approve Bay Beach Pretzel & Popcorn 3-year contract: to Valley Popcorn for $10,833 and Badger Wholesale for $9,932; total 1st year estimated cost $20,766.  The motion carried.

 

8.3b A motion was made by Ald. Weber and seconded by Ald. Nelson to approve Bay Beach Groceries 3-year contact to Badger Wholesale for $20,990 and Valley Popcorn for $2,655; total 1st year estimated cost:  $23,645.  The motion carried.

 

A motion to adjourn was made by Ald. Weber, seconded by Ald. Nelson, and carried.  The meeting was adjourned.

 

2006 CONTINGENCY FUND

$384,405.00