MINUTES
FINANCE COMMITTEE
MEMBERS
PRESENT: Chairman John VanderLeest,
Ald. Tony Theisen, Ald. Steven Deneys, and Ald. Tom Weber
MEMBERS EXCUSED: None
OTHERS PRESENT: Doug Daul, Jerry Hanson, Chief Arts,
Chief Stauber, Allison Swanson, Carl Weber, Russ Schwandt, Christopher Phelps,
Robin Powell, and Others
1. Roll Call.
Vice
Chairman Tony Theisen called the meeting to order at 5:33 p.m.; all members
were present except for Chairman VanderLeest who arrived shortly therafter.
2. Approval of the Agenda.
A motion was made by Ald.
Weber and seconded by Ald. Deneys to approve the Agenda as amended to move up
Item #7 after Item #3. Motion carried.
3. Approval of the minutes of the Finance
Committee meeting of June 12, 2007.
A motion was made by Ald. Weber,
seconded by Ald. Deneys and carried to approve the minutes of the Finance
Committee meeting of June 12, 2007.
Item #7
was taken next, followed by the balance of the agenda..
4. Request by the City Attorney to cancel
certain real and personal property taxes.
Assessor
Russ Schwandt distributed a sheet replacing page 4y of the Finance packet. A duplicate account existed in this case,
and the unpaid duplicate account will be cancelled rather than the one already
paid. All other cancellations are
straightforward, the majority being companies that were out of business as of
the first of the year.
A motion
was made by Ald. Theisen to approve the request by the City Attorney to cancel
certain real and personal property taxes.
It was seconded by Ald. Weber and carried.
Ald.
VanderLeest arrived.
5. Request by Transit General Manager to
transfer funds from its operating reserve to its capital reserve for the
purchase of new buses.
City
Attorney Jerry Hanson introduced Christopher Phelps, new Transit Director, and
he was welcomed by Chairman VanderLeest.
Ald.
VanderLeest explained that the Committee had previously asked Transit to ensure
that available buses are being utilized in the most efficient manner and to
look at the possibility of purchasing smaller buses in light of rising fuel and
maintenance costs. After conferring
with staff, the Transit Commission, and City officials, Mr. Phelps saw that most
concerns were related to the size of vehicles being purchased, the perception
being that larger buses do not reach capacity level. He said the decision to purchase 30-ft., 35-ft., or 40-ft. buses
comes down to operational need, and that the cost difference between those
sizes is insignificant. All size buses
use the same components – engines, transmissions, rear ends, tires, axles, door
systems, etc. – a five-foot section is simply taken out of the middle to make
smaller buses. This removal reduces seating
capacity.
One of the
goals of the Americans with Disabilities Act (ADA) was to allow disabled
persons easier access to fixed bus routes.
The industry has moved to a low-floor bus, eliminating a wheelchair lift
and allowing for ease of access, but also reducing seating capacity. The twelve 30-ft. buses bought in 2003 and
2004 seat about 25 persons and have one door.
By law, they must have two wheelchair stations, and at least three seats
are lost for each passenger in a wheelchair.
Mr. Phelps
said it was determined that medium size buses would be the best fit for the
City at present. There are areas where
30-ft buses work, as well as areas where 40-ft buses work, but there are not
enough to have them where they are needed at all times. He said flexibility in bus size is necessary
to meet the City’s needs today and down the road. Route restructures and revisions to enhance the service and add
to the ridership will be investigated.
Ald.
VanderLeest asked if operational expenses, such as maintenance and gas costs,
had been studied long term – 10 to 15 years – to compare such costs between
different size buses. Mr. Phelps said
the buses are using the same engine and transmission packages, and that savings
come in space, although components will wear differently in some areas. A shorter bus has a shorter distance between
axles and provides a rougher ride.
Transit buses get 4½ to 5 miles per gallon and are large enough so that
5 or 10 feet would not subtract from that mileage in a measurable sense. He said smaller buses may be a little more
economical in some areas, but overall, the operational costs are almost
identical. He said the City’s 40-ft.
buses are the first he has had experience with, and they get 4 to 5 miles per
gallon and have a life span of 12 to 15 years.
In a heavy-duty transit bus, cost is not the reason to select a vehicle
– size is the important issue, so as to meet the needs of the community.
Mr. Phelps
said the buses being replaced at this time are 35-ft. 1986 models, although
there are still 1982 units on the lot.
He said this is a capital investment and the decision they make will
stay with them for a long time. The
30-ft. buses have seating for 25 passengers, or 19 passengers and two
wheelchairs. They will work in some
cases, but are limited, whereas the 35-ft. buses offer space for a few more
seats, usually 34 passengers or 28 passengers and two wheelchairs, depending on
configuration. Transit currently has 12
30-ft. buses, 21 40-ft. buses, and 6 35-ft. buses, for a total of 39
vehicles. Funding exists for three
buses, although 24 vehicles are eligible for replacement, having exceeded their
12-year, half-million-mile life. 80% of
the purchase price, the Federal share, would come through 2001 and 2006 Federal
grants. The other 20% must come from
local funds. The estimated cost of a
heavy-duty coach is approximately $330,000.00, depending on options and
specifications.
Ald.
Theisen asked if it is difficult to find routes where the 30-ft. bus is large
enough; Mr. Phelps replied that it is never too large for a route and does work
in some cases. It must be scheduled for
certain routes, however, and two buses may have to be sent out during peak
times. A larger bus could be sent, if
available, calling in a driver on overtime, although some do not have
wheelchair lifts. There are routes at
present where people stand during peak load periods, but standing may be unsafe
in some instances. Ald. Theisen asked
for an example of a route and time when a bus typically fills up, saying he has
never seen a bus more than half full.
Mr. Phelps
said the intent is not to just keep the routes the City has today, but to
expand into nearby municipalities.
30-ft. buses would be used in these developing routes, as it takes about
24 months for people to get used to and use a new route.
Ald. Weber
asked if other vehicles are available through other manufacturers; Mr. Phelps
replied this is a heavy-duty bus. There
are three categories – light, medium, and heavy duty, and the next step down is
medium-duty. A medium-duty vehicle is
typically some kind of converted truck, such as an International or
Freightliner truck being converted with a bus shell around it. These units have smaller engines, smaller
transmissions, suspensions, etc., and are rated for 7 years or 200,000
miles. The buses the City is buying are
rated for 12 years and a half million miles.
He said the medium-duty vehicles get old quickly. The buses in use now are specially designed
for transit applications – they can travel at low speeds with constant stops
and starts on a day-in, day-out operation for 15 to 18 hours per day. Purchasing medium-duty vehicles would put a
truck vehicle into a mass transit application.
Ald. Weber
asked for more data, such as cost per mile figures and life spans on both
types, so as to be able to compare actual costs. Ald. Theisen agreed that a one-mile per gallon difference among
units may make a considerable difference over the life of the vehicle, and also
asked for weight differences, since that also affects mileage per gallon. Mr. Phelps cautioned that funding is
cyclical and may not be available to purchase a lighter duty bus that may break
more quickly and is unrepairable. He
said no data on the lighter-duty vehicles was provided because the intent was
to purchase the heavy-duty units. They
will study the issue and look at costs and benefits of other modes and options,
but he said this would be a fundamental change on what Metro is and where it is
going. He asked to use the grants to
purchase the heavy-duty buses the department has already been using.
Ald. Weber
concurred, but asked that more data be provided for future purchases, as well
as a definition of “minor differences” between the costs of the 30, 35, and
40-ft. units. He also asked for
comparisons between vehicles and systems used by other municipalities and said
some constituents may not want to expand the system. Mr. Phelps said he could bring peer city information, but noted
that a bus is a custom built vehicle, and what is put on the bus will determine
the cost. Different cities require
different options. Bid packages with
options could be prepared. He noted
that the City’s specs reflect what the City needs and the specs are practical
and locally derived.
Ald.
VanderLeest stated that the decision to purchase 35-footers is good for the
present, but asked for analysis of 30, 35, and 40-ft. buses for future
purchases. He also asked that smaller
buses be considered, noting that the Finance Committee is responsible for
keeping taxes down and looking at spending.
Mr. Phelps remarked that his role is to ensure that we are operating as
efficiently as possible and to balance advocate needs vs fiscal responsibility. He said lower initial capital cost is not
always the wisest choice, and asked that the City look long term. He will work to address the concerns of the
Committee in the future.
A motion
was made by Ald. Theisen and seconded by Ald. Weber to approve the request by
the Transit General Manger to transfer $198,000 from its operating reserve to
its capital reserve for the purchase of new buses. The motion carried.
6. Request by the Dept. of Public Works for a
transfer of funds from Public Works, Engineering Div., Salaries, Health &
Dental Ins., Social Security, Medicare and WRS – Employer Share, to Equipment
Replacement for the purchase of surveying equipment, office equipment and
remodeling expenses.
Public
Works Director Carl Weber explained that when his department submitted the
reorganization plan that was approved by Council in June, it asked that savings
realized by not filling the anticipated engineering technician vacancy this
summer be held to purchase surveying equipment and for office remodeling. These costs are estimated at $46,000 and are
covered by funding in place for vacant positions. He asked that funds be transferred to the Equipment Replacement
account to be used for remodeling, handling asbestos, GPS field survey units
for field crews, a 1-person laser level system, and three CAD work
stations. These improvements are
related to the lean staff process carried out earlier and will add to the
efficiency of the department.
A motion
was made by Ald. Theisen and seconded by Ald. Deneys to approve the request by
the Dept. of Public Works for a transfer of $46,000 from Public Works,
Engineering Div., Salaries, Health & Dental Ins., Social Security, Medicare
and WRS – Employer Share, to Equipment Replacement for the purchase of
surveying equipment, office equipment and remodeling expenses. The motion carried.
7. Request by the Director of Economic
Development for permission to receive and disburse funds on behalf of the City
branding initiative.
Director
of Economic Development Allison Swanson said this initiative was started when Arketype,
Inc. approached former Mayor Jadin about doing a marketing, or branding,
campaign for the Greater Green Bay Area.
Mr. Jadin is now President of the Chamber of Commerce. This organization, along with the Visitors
and Convention Bureau and the Greater Green Bay Community Foundation, issued a
Request For Proposals (RFP), with the intent of creating a new image for Green
Bay and building on its reputation.
Larger corporate companies, such as engineering, banking and health
care, who are trying to recruit new employees were particularly interested in
this concept. A committee was formed
and members are currently soliciting funds from major corporations, seeking a
3-year commitment of $50,000 each year.
Funds were originally intended to go to the Greater Green Bay Community
Foundation for disbursement, but that organization has undergone changes and
will no longer act in that capacity. The City is being asked to be the holder
of those funds – we would receive and disburse them based on the recommendation
of the committee.
Ms.
Swanson asked the Finance Committee to approve the set-up of this fund to allow
the City to receive such donations. She
has spoken to employers who are interested in creating a metropolitan
atmosphere comparable to cities from which they are trying to recruit
personnel. This initiative is in the
beginning stages, and no logo has been done as yet. Major companies will be part of the committee formed to kick it
off, along with the Packers, the Chamber of Commerce, Visitors and Convention
Bureau, and the City. She said they
would like the County and surrounding communities to also be part of this
group.
Funds for
the branding initiative would be donated, and Ms. Swanson said the City would
be expected to contribute, possibly from TIF districts. The funds would come back to the
organization’s committee for approval of expenditures. The City would serve as the holder of the
funds and spending would not come back to Finance for approval, unless City
money is being spent. Ald. Theisen said
he was not sold on using TIF money for this purpose, but would go along for
now, and Ms. Swanson said it wasn’t being requested at this time. She said they are trying to get people on
board and start to develop a budget.
Ald. Weber
asked if other materials are available to help current employers locate
potential employees, and Ms Swanson replied that the Chamber has set up a job
bank called Nation Jobs, comparable to Monster, that performs this task. The largest employers who are members of the
Chamber chipped in to become founding members, allowing smaller members of the
Chamber to take part. She said NWTC
trains and tries to increase the workforce in Green Bay, but not much is being
done nationally to change our image.
Ms.
Swanson said the Mayor is very supportive of this concept and has met with the
group several times. She thinks this is
a good start, and hopes to see other communities participate, since identifying
corporate entities also involves looking at other municipalities. The City is looking at a way to put in
$50,000 -- the corporations will look
to us to also be supportive. Others
have been pledging for 3 years, but Ms. Swanson said the City would have to
look at it each year, and not commit to 3 years.
A motion
was made by Ald. Deneys and seconded by Ald. Weber to approve the request of
the Economic Development Director to allow the contributions to run through the
City of Green Bay on behalf of the City branding initiative. The motion was seconded by Ald. Theisen and
carried.
8. Report of the Purchasing Agent:
a. Duct insulation repair work at DPW Westside
garage award to Hurkman Mechanical for $14,000.
Finance
Director Doug Daul said this work was budgeted for and is the low quote.
A motion
was made by Ald. Weber and seconded by Ald. Deneys to approve the duct
insulation repair work at DPW Westside garage award to Hurkman Mechanical for
$14,000.
b. Traffic signal controls to Traffic &
Parking Control Company, Inc. for $33,202.
Mr. Daul
said this is a sole source bid and is coming before Committee for
permission. The department did not want
different components controlling the traffic lights, so approval was given for
a single vendor. A motion was made by
Ald. Theisen and seconded by Ald. Deneys to approve the sole source bid for
traffic signal controls to Traffic & Parking Control Company, Inc. for
$33,202. Motion carried.
c. Traffic poles and related equipment for
$79,062 awarded as follows:
c1: $42,755 – Neher
c2: $13,936 – Wesco
c3: $13,936 –
Traffic & Parking
c4: $9,238 – Cisco
Distr
These
items were competitively bid, with six companies bidding on all nine
items. The low bid was selected in each
category.
A motion
was made by Ald. Deneys, seconded by Ald. Weber and carried to approve traffic
poles and related equipment for $79,062 to Neher, Wesco, Traffic & Parking,
and Cisco Distr.
d. 2007 hot mix asphalt requirements from
Northeast Asphalt for an estimated $26,950.
Mr. Daul
said this was the second sole source bid and explained it is necessary because
the product must be delivered hot. The
next closest vendor would be Appleton, and material would not be hot enough for
use when delivered. Although not
totally comfortable with sole source bids, the Committee felt confident that
Purchasing and the departments involved had done a thorough job and were
satisfied with the costs.
A motion
was made by Ald. Deneys, seconded by Ald. Theisen and carried to approve 2007
hot mix asphalt requirements from Northeast Asphalt for an estimated $26,950.
e. Reject quotes received for one used pickup
truck for Police Dept. and purchase a vehicle available under the Federal
Procurement program. If none
satisfactory under that program, new quotes will be solicited for the vehicle.
Chief Arts
said this was the second quote submitted and it came back higher than the
first. He had checked wholesale pricing
and felt the vendors could do better and still meet the quote. He asked for authority to reject these
quotes and procure and refurbish a vehicle, saying low cost vehicles are
available through the Federal procurement program near Madison. He expected to get a vehicle for less than
$6,000 that would meet department needs, although it would probably need to be
repainted.
A motion
was made by Ald. Theisen and seconded by Ald. Weber to approve the request by
Chief Arts to reject quotes received for one used pickup truck for Police Dept.
and to grant approval to procure and refurbish a vehicle.
f. Firefighting protective clothing (50 sets
turnout gear) from Fire Safety USA for $135,630 for 2007 & 2008
requirements and an option to purchase for 2009 & 2010.
Chief
Stauber said his department worked with Purchasing in inviting 30 fire
departments from municipalities in Brown County and Northeast Wisconsin to
participate in writing a common specification.
Seventeen responded, and five committed to purchase. Interest was lower than hoped because many
municipalities had already made their purchases for 2007 while some were
skeptical of the process and wanted to wait and see results. The departments were satisfied with pricing
and Green Bay will buy 50 sets of turnout gear this year, and 50 next year, if
funding is available for the sets next year.
If funding is not available, they are not committed, but if available,
the pricing is there.
A motion
was made by Ald. Theisen, seconded by Ald. Deneys and carried to approve:
Firefighting
protective clothing from Fire Safety USA, 50 sets for 2007 at a cost of $66,230
and 50 sets for 2008 at a cost of $69,400 for a total of $135,630 and an option
to purchase for 2009 & 2010.
9. Report of the Finance Director
a. Payroll Update
Mr. Daul
said the present Payroll Administrator will retire as of next Monday and her 44
years of service to the City will be recognized at Council next Tuesday. A new person has been hired who will start
July 23rd. She comes with
excellent references and has experience with payroll and ADP.
A motion
was made by Ald. Deneys, seconded by Ald. Weber and carried to receive and
place on file:
a. Payroll Update
A motion
to adjourn was made by Ald. Theisen, seconded by Ald. Deneys, and carried. The meeting was adjourned at 7:08 p.m.
2007 CONTINGENCY FUND
$190,000.00
Any person wishing to
attend who, because of a disability, requires special accommodation should
contact the Mayor’s office at 448-3005 at least 24 hours before the scheduled
meeting time so that arrangements can be made.
Please take notice that it is possible that additional members of the Council may attend this committee meeting, resulting in a majority or quorum of the Common Council. This may constitute a meeting of the Common Council for purposes of discussion and information gathering relative to this agenda.