MAYOR AND COUNCIL
ROCKVILLE, MARYLAND

Meeting No. 13-08
April 28, 2008

The Mayor and Council met on Monday, April 28, 2008 at 7:17 pm in the Mayor and Council Chambers, Rockville City Hall, 111 Maryland Avenue, Rockville, Maryland.  Prior to their meeting, upon motion by Councilmember Robbins, duly seconded by Councilmember Britton, and unanimously passed, the Mayor and Council met in Executive Session at 6:15 p.m. pursuant to Section 10-508 (a) (1) (ii) of the State Government Article, Annotated Code of Maryland.  Present at the Executive Session were the Mayor and Council, City Manager Scott Ullery, and City Attorney Paul T. Glasgow.  The purpose of the Executive Session was to discuss the legal services provided by the City Attorney.  There being no further business, the meeting adjourned at 7:10 p.m.

In attendance: City Manager Scott Ullery, City Attorney Paul Glasgow, City Clerk Claire Funkhouser. 

Re: Mayor Hoffmann’s Opening Remarks

Mayor Hoffmann opened the meeting, welcomed those in attendance, and turned the meeting over to City Manager Scott Ullery.  Mr. Ullery said that this was the first budget worksession for the FY2009 budget, a second worksession is scheduled for May 5th and, if needed, a third worksession can be held on May 12.

Re: Water Rates

Mr. Ullery said that the first item of business would be the presentation of additional information on the water rates.  He introduced Craig Simoneau, Director of Public Works, to present the information.  Mr. Simoneau said the information had been requested by the Mayor and Council at their meeting of March 10th, 2008, and, it was hoped that, with this additional information, it would be possible to obtain Mayor and Council direction and decision on the water rates.  As a reminder of discussion so far, Mr. Simoneau presented background information, including a summary of the discussion on February 11th, and the subsequent meeting of March 10th. 

At the meeting on March 10th, staff had provided funding and rate options for the water facility funds, including water treatment plant upgrades, and water main rehabilitation program.  Staff had recommended Option 2B and had included funding for this option in the proposed FY2009 operating budget.  This option provided for a twenty-year plan for the project with no infrastructure renewal fees (IRF).  As a result of Mayor and Council direction at the March 10th meeting, staff had returned with a modification of Option 2(B), to lower the initial rate increase. 

For purposes of the discussion this evening, staff had also provided cash flows for all options provided a table of water accounts in terms of water usage throughout the City, and information on analyses on impact of modification to tear structure to the rates.  Mr. Simoneau said that, based on the above, staff is presenting two options for the Mayor and Council’s consideration:  Option 2(B), a 20 year rehabilitation without the IRF that appears in the budget; and a new option, Option 2(C), which is a 20 year rehabilitation, without an IRF. 

Mr. Simoneau said that staff has updated all curves and the curve shown eliminates negative cash balances, including minor adjustments to project bonding, and accurately reflects the ready to serve charge split between water and sewer funds.  Using graphs and other visuals, Mr. Simoneau described all of the different scenarios, including the new option of 2C.  He also depicted the impact that Option 2B or 2C would have on a typical household bill with average water bill consumption.  Mr. Simoneau also demonstrated the rates per 1,000 gallons for both the options.  As stated, staff provided information about the cash flows for all of the options, including 2B and 2B.  

In the next section of his presentation, Mr. Simoneau showed the assessment of the number of water accounts in the city as determined by meter size, and the number of water accounts in the city as determined by water consumption.  The data showed that the greatest number of accounts clearly use either a 5/8 size meter or 3/4 size meter.  In terms of the number of the water accounts, the largest number of water users consume less than 12,000 gallons or less.  The next largest users consume between 12,000 – 24,000 gallons, and a fairly low number of users consume over 24,000 gallons. 

Mr. Simoneau also outlined progress that had been made since the March 10th Mayor and Council meeting in terms of the water main rehabilitation program.  He said that survey and design on the first segments of the upgrade had included the hiring of a surveyor, sending out Neighborhood Advisories with the goal being to begin construction in the fall of 2008.  Based on the authorization of the Mayor and Council at the February 11th meeting, staff had transferred $275,00 from the air release valve to the Horizon Hills CIP and renamed the project the Water Main Rehabilitation Project.  Additional progress included setting up a specific website regarding this program, the development of frequently asked questions (FAQs) information sheet, an article in Rockville Reports, and programs on Rockville’s cable TV channel. 

Mr. Simoneau also outlined progress made in terms of the coordination with the Montgomery County Fire and Rescue about fire flow.  There has been is continued coordination about the “less than optimal” flow fire hydrants in Rockville and Montgomery County Fire and Rescue has been given a map showing those locations.  One of the outcomes of the progress with Montgomery County Fire and Rescue is a plan to indicate those hydrants which have less than optimal flow or which are out of service entirely by marking them with different colors.  This has not occurred yet, but is in process. 

In conclusion, Mr. Simoneau said that staff is recommending either option 2B or 2C.  He said that either one of these options ensures a reliable water systems to meet today’s needs and future regulations, as well as a fiscally responsible approach.  Mr. Simoneau then presented a graph that isolated the 2B and 2C options so that the Mayor and Council could readily see the variations between the two.  Mr. Simoneau said that, after the Mayor and Council provide direction this evening, next steps would include an approval to award a survey and design contract for FY09 projects in May 2008, and the marking of the fire hydrants beginning this summer.   Mr. Simoneau added that staff would begin to meet with residents to discuss the program.  Because there has been some concern expressed by Montgomery County Fire and Rescue Services that the red and black hydrants are difficult to see at nighttime, staff would also evaluate Rockville’s overall fire hydrant color. 

Mr. Simoneau said the next steps would include the adoption of the budget on May 19th, which would include the water rate ordinance depending on the option that the Mayor and Council decided upon this evening.  In terms of further analyzing the tier rates that had been brought up at an earlier meeting, Mr. Simoneau said that would be a significant task to analyze the tier rates and that a consultant would have to be hired in FY2009 to put this together for the FY2010 budget, if this is desired.  Mr. Ullery reiterated the direction that is being asked of the Mayor and Council this evening regarding either Option 2B or Option 2C.

In discussion, Councilmember Marcuccio said if it is all right if a fire hydrant is unmarked.  Mr. Simoneau replied that none of the hydrants had been marked yet and that work on this would not begin until the summer.  After the fire hydrants are marked, if a fire hydrant is all right, there would be no marking on that unit. 

Councilmember Gajewski said that he wished to be clear that on funding for option 1B, there was an aspect of the curve that needed to be corrected.  Staff responded that this was true and that all curves had been correctly aligned.  Councilmember Marcuccio then moved to adopt Option 2C for residential rates, which was seconded by Councilmember Britton.  

Having heard both options, and that neither would jeopardize water flows, Councilmember Britton said he endorsed Option 2C because it would moderate the cost of the increases for residents.  Councilmember Robbins said that the Mayor and Council need to be sensitive to costs all over, and it would be helpful to moderate the costs to residents.  With Mayor Hoffmann, and Councilmembers Britton, Marcuccio, and Robbins voting, “aye,” and Councilmember Gajewski voting, “nay,” the Mayor and Council approved Option 2C.

Mr. Simoneau reiterated the next steps.  Referring to fire hydrants that may not be up to par, Mayor Hoffman asked how long it would take for them to have optimal water flow.  Mr. Simoneau said that this is a priority and there would be an attempt within the next year to repair those that are most critical. 

Re: FY2009 Budget Worksession

Using a power point presentation, Budget Officer Stacey Tate reviewed the agenda for this item which included operating budget changes by fund, operating cost impacts, personnel changes based on compensation study recommendations approved by the Mayor and Council, departmental reports, outstanding issues, a decision on the property tax rate, and a review of the budget schedule. 

Ms. Tate reviewed the General Fund expenditures in terms of changes from FY2008 to FY2009 proposed.  This includes a personnel increase of $1.3 million dollars and an overall increase of 6.2 FTEs, $262,000 in retiree health costs related to GASB45, $245,000 for utility charges for the water sewer and stormwater management, $200,000 in training, tech, and assistance support, $530,000 in operating costs impacts from CIP projects and $4.5 million transfer to the CIP, which represents an increase of $2.1 million dollars from last year. 

Changes from the FY09 proposed budget to what is now being proposed would include a $15,000 increase for community events, a $70,000 decrease for stormwater management fees, $21,535.00 decrease from operating costs impact adjustments and $217,310.00 savings from the compensation study implementation. 

In terms of general fund revenues, Ms. Tate said that changes from the FY2008 to the FY2009 proposed include $2.4 million increase in the property tax revenue, $1.0 million increase in income tax revenue, $143,000 increase in Recreation and Parks program fee revenue, $227,000 decrease in interest income, and $200,000 decrease in highway user revenue.  Changes from the FY2009 proposed to the current proposed to the current proposed would reflect a $600,000 increase in the hotel tax based on the Mayor and Council adoption at a 2% tax rate, and a $61,000 decrease for the lease at 32 Courthouse Square.  City staff will begin to occupy 32 Courthouse Square so there will no longer be tenants in that building.  Ms. Tate also showed these general fund changes to the Mayor and Council in a graph.  

Ms. Tate then reviewed each one of the Enterprise Funds in terms of expenditures and revenues to each, including the water facility fund, the sewer fund, the refuse and recycling fund, the parking fund, the stormwater management fund, Redgate, Town Center Management district, and the speed camera fund.  Ms. Tate noted that some aspects related to the enterprise funds may be incorporated into the departmental reports. 

After the overview of the FY09 budget, Councilmember Robbins mentioned an article that recently appeared in the Fallsgrove Times by Twinbrook resident Rich Gottfried.  In the article, Mr.Gottfried talked about a deficit of funding in some of the funds and asked if the cost could be spread over City Departments.  It was again explained that revenues and expenditures distinct to the Enterprise Funds do not did not relate to the operating budget, which is a balanced budget.  At this point the departments began their presentations:

Recreation and Parks 

After introducing the division heads in his department, Director of Recreation and Parks Burt Hall said he would like to provide a brief overview of the FY 2009 Recreation and Parks budget and explain a number of the factors influencing the proposed budget within the department’s seven divisions.  

The first division is Recreation and Parks Administration, which provides overall leadership and management for the department, and also contains Special Events, Capital Projects and Employee Wellness.  FY09 will be the first year of full operation of the Recreation and Parks Foundation.  The foundation’s focus will be on fundraising and obtaining grants to support recreation and parks facilities and programs.  Special Events will continue to offer a series of major events, concert series, the Farmers’ Market and other programs focused on promoting the Mayor and Council’s goal of Rockville becoming a cultural destination.  Also, an additional $15,000 is proposed to enhance the Community Events program. 

The next division is Recreation Services.  Priorities for FY 09 include a robust campaign to increase donations to support the recreation fund, which has seen a substantial increase in usage by low-income residents.  A new, fully revenue-supported, half-time position that will manage the growing recreation classes programs, including programs at the new Thomas Farm Community Center and other locations, is included in the proposed FY 09 budget. 

The next division is Senior Citizen Services, which provides for the social, recreational, educational, fitness, wellness and transportation needs of our diverse elderly population.  No significant changes are proposed in the Senior Citizens division budget.  A number of potential enhancements to revenues have been identified in the Recreation and Senior Services areas as options available to the Mayor and Council to offset the proposed property tax reduction. 

The fourth division is Community Services, which joined the Recreation and Parks department in FY 2007.  Community Services provides supportive programs and services to help at-risk and disadvantaged youth and families to become self-sufficient, make positive life choices and adjust to societal challenges.  No significant changes are proposed in the Community Services budget.

Mr. Hall continued by saying that, the next division, the Facilities Division, contains the budgets for the City’s major facilities:  The Rockville Municipal Swim Center; the Civic Center Complex; Lincoln Park, Twinbrook, and Thomas Farm Community Centers, and the Croydon Creek Nature Center.  In addition, the Facilities Maintenance cost center has overall maintenance and improvement responsibilities for all of the City’s sixty-nine buildings.  In FY 09, the Facilities Division will begin managing and maintaining the physical plants of the Town Square Parking garages.  The new cost center, budgeted in the Parking Fund, has a total budget of $1.05 million.  A new Parking Garage Manager position is included in proposed budget, to staff this responsibility.  This position will manage all contracts associated with the day-to-day operations of the garages, facilitate repairs to all equipment, develop and manage the operations budget and interface with other Town Center entities. This position is critically important to the successful management of the parking garages.  It is anticipated that the City will acquire ownership of the Old Rockville Post Office within the next 60 days.  $9,500 is included in the FY 09 budget for maintenance of the building and the site. 

Mr. Hall said that the new Thomas Farm Community Center is well underway and should be ready to open in January.  Two new positions are included in the FY 09 budget, the Assistant Supervisor and the Custodian, to round out the 3-person full-time staff.  A partial-year operating budget of $336,500 is also included.  Cost recovery for Thomas Farm is projected to be 50% of operating costs.  The Swim Center Meeting and Fitness Room addition is now under construction and will open mid-year in FY 09.  It will provide much needed space for neighborhood meetings, classes, rentals as well as a top-flight fitness experience.  A new custodian position is included in the budget to provide upkeep of the new addition and to help with the expected higher overall use of the Swim Center facilities.

From FY 2006 to 2009, the total square footage of City buildings maintained by the Facilities Division has more than doubled, from 400,000 square feet to more than 800,000 square feet.  Much of this new square footage is in the Town Square garages but also includes the Thomas Farm Community Center, the Post Office, the Arts and Innovation Center and the Swim Center addition. The budget includes a new tradesworker position to allow Facility Maintenance to keep up with the demands of all of this new square footage.  Another factor influencing the Facilities Division budgets is the installation of City water meters at all major City buildings.  These facilities will pay regular City water charges for the first time in FY 09, adding a total of $250,000 to the budget.  Finally, in Facilities, most of the City’s heating and electrical costs are budgeted in the Facilities division.  Electricity costs are expected to be approximately $60,000 higher than in FY 08.  The good news is: natural gas costs are expected to remain at FY 08 levels. 

The sixth division is Parks and Open Space, which is responsible for management of the City’s 872 acres of parkland, the Urban forest, rights-of-way, and the flower program.  A couple of initiatives to highlight for FY 09 include a new Invasive Plant Management Program, partially funded by developer contributions, that will support the Mayor and Council’s environmental initiative.  An additional $20,000 was added to the Forestry Maintenance cost center for block pruning of neighborhood street trees.  This year’s focus on neighborhoods east of Rt. 355 will continue. 

Mr. Hall said that the last division was RedGate Golf Course.  FY 09 will mark the third year of the RedGate Golf Course’s five-year business plan.  The Golf Course budget is focused on holding the line as much as possible on costs and continuing to build revenues through enhanced playing conditions, marketing and special discounts for residents, frequent players, senior citizens, etc.

Councilmember Robbins thanked Mr. Hall and complimented him on such a well-run department, emphasizing Mattie Stepanek Park.  Councilmember Robbins said it means so much to Mattie’s mother to Mrs. Stepanek to look out over the park from her home. 

Councilmember Robbins then expressed a concern about the City’s allocation for the City’s Human Services, especially its support to non-profit organizations.  Councilmember Robbins said she was disappointed to see the cuts in three of the major programs and said she hoped that the Mayor and Council would consider an additional $3,000 for Helping Hands Shelter, an additional $5,000 for Latino Outreach, and an additional $3,500 for the Mansfield Kaseman Center.  
Councilmember Robbins said that seniors have especially been affected by the down turn in the economy, citing losses in the stock market and other sources of income.  She mentioned that there are many women in the city who live on their husband’s social security and changes in the economy now dramatically affect them.  She said that she would like to see the half-time home maintenance assistant position at the Senior Center included in the budget and would also like to see the senior fees, which had been projected as part of the increase in the Recreation and Parks fees, kept down. 

Additionally, Councilmember Robbins suggested that the cap on the REAP program be raised.  Councilmember Robbins mentioned a letter to the Mayor and Council from a gentlemen thanking them for the discount coupon vouchers for taxi transportation.  In the letter, the person said that the savings allowed him to live on a small income.  Councilmember Robbins said she would like to see if the Mayor and Council could make a statement by doing this.   

Elaborating on what Councilmember Robbins had said, Councilmember Britton asked if staff could calculate the spin-off in revenues to merchants from some of the cultural and social events that the City supports, such as Hometown Holidays.  In terms of Mattie Stepanek Park, Councilmember Britton said he had spoken to a group from Silver Spring about the Bankshot Program proposed for Mattie Stepanek Park, including a number of people with disabilities.   They raved about the merits of Bankshot and Councilmember Britton wondered if it could be accelerated. 

In terms of Recreation and Park athletic activities, Councilmember Britton cited a growing need for people to play fusbol, which is used with a hard soccer ball and can be played indoors or outdoors on hard concrete.  This game is played in Europe quite a bit, and primarily used by soccer players to stay in shape during cold weather.  Councilmember Britton also inquired about the possibility of sponsoring a monthly teen activity.  He noted a program at the Potomac Community, which is a non-alcoholic nightclub for teens.  Mr. Britton also wondered how the call for ‘buskers” or street entertainers for Town Square had been going so far.  Mr. Hall responded that the City could look into these suggestions, adding that the City had received three contacts from musicians wanting to participate in the call for entertainers. 

Returning to Councilmember Robbins point about Human Services, Councilmember Britton said that he agreed that the budget should be increased for caregivers, especially those dealing with food, clothing, and shelter, which were not necessarily the ones included on Councilmember Robbins’ list.  Councilmember Britton said that one percent of the operating budget would be about $620,000 for the programs, and, based on what is recommended, that would leave a gap of $140,000 if only 1% of the budget were set aside for these causes.  In another comparison, Councilmember Britton noted that REDI receives $493,000 and that looking at the difference between that and what the human service providers were expected to receive, the gap was approximately $30,000.  Regarding some of the criteria, Councilmember Britton said that he knows the importance of the number of Rockville citizens served, but questioned if the number of Rockville residents is understated. 

Mayor Hoffmann asked for more information on the half-time position at the Senior Center.  Councilmember Robbins said that the Mayor and Council had received testimony from Ciarrco Gonzales, the Chair of the Senior Citizens Commission stating that the Center needs this half time person to administer such a program to help seniors who wish to stay in their home.   People could provide civil services for them (change a light bulb, minor plumbing, general minor maintenance in their homes, etc.)  The half-time person could keep track of requests and make sure that the person providing services is reliable.  The cost would be approximately $17,000. 

Mayor Hoffmann asked who would actually do the work, and Mr. Hall said that staff had researched companies and volunteers for the work.  Mayor Hoffmann wondered about liability issues if the contractor did not perform.  Mr. Hall said there would be some risk but that the plan is to give the seniors a list and they would choose who they wanted.  This position would come under Lorraine Scheck along with the Senior Citizens Commission.  Mr. Hall said that the person who had been spearheading this effort was Pete Sante.  Councilmember Robbins said there seemed to be a genuine interested among the seniors in doing this.  Councilmember Robbins said that, for some reason, this position seems to be a symbol to the seniors of something they have been trying to encourage.  Councilmember Marcuccio said that she had served has a liaison to the Commission when this brought up and there seems to be a common need as pointed out in the Senior Citizens survey.  Councilmember Marcuccio wondered if anything could be used for this from the $350,000 received from the State of Maryland, but Jill Hall, the Senior Center Supervisor, said that it could only be used for capital improvements. 

Mayor Hoffmann asked Community Services Program Manager Marylou Jacobs to speak on the process for soliciting recommendations based on the requests from the Human Services providers.  Ms. Jacobs said that it is an open, competitive application process with a review panel.  The panel looks at the quality of the application, number of Rockville residents serviced, whether or not the petitioner asked for an increase and the justification for it if they have.  If there is an expansion plan for the program, the review panel looks at how many Rockville residents are will be increasingly served by this.  Councilmember Robbins noted that the numbers for the Mansfield Kaseman Health Center and Latino Outreach seemed to be going in the right direction in terms of serving more Rockville residents.  Councilmember Britton asked for more information about the Mansfield Kaseman Center and Marylou Jacobs said they had asked for an increase of $7,500 for their director to work on a project.  Then they received a grant and requested the money be changed to outreach to the African-American community, and that the request for an increase was to enlarge that aspect of the program. 

Councilmember Robbins reiterated her concerns about people served by the programs and how, in light of the economy, things should be looked at a bit differently.  Mr. Gajewski said that he agrees with Ms. Jacobs about the importance of the data and cautioned about making changes without reviewing them; however, since the money was so insignificant, he supports the restoration of the $ 11,500. 

Councilmember Marcuccio asked Ms. Jacobs about the SHARP program.  Ms. Jacobs explained that this program is for children who are suspended from school or are in at-home detention.  The purpose of the program is to keep an eye on them and make sure that the children are involved in worthwhile activities while they are at home.  Mr. Hall mentioned that the Bankshot program for Mattie Stepanek Park was already in the budget in the amount of $65,000.  In terms of the teen event mentioned earlier, Mr. Hall said that currently the city sponsors a quarterly teen event and the need to look for a facility if expanding that program is desired.  Mr. Hall also mentioned the existence of a series of Friday nights for preteens at Twinbrook and Lincoln Park.  . 

Councilmember Marcuccio said that she was struck by the growth in the Recreation and Parks budget and wondered why the costs have gone up significantly.  Mr. Ullery responded that a number of new services had been transferred to that departmental budget, including the management of the garages, the inclusion of Community Services, the new facilities in parks, chiefly Mattie Stepanek Park and the Thomas Farm Community Center.  Mr. Hall said that in FY04 his staff was 159 FTEs and in FY08 that number had only expanded to 163.4 FTEs, even with the inclusion of the programs noted before.  In terms of the specific cost increases, Mr. Hall said that, in addition to those mentioned by Mr. Ullery, there has been a tremendous increase in electric and gas and that, since the utilities for all city facilities comes under Recreation and Parks, this had made a significant impact on his department’s budget.  In terms of the relatively small amount of increase in staff, Mr. Hall said that it is a tribute to his staff, who have absorbed additional work with relatively few increases. 

Public Works

Director of Public Works Craig Simoneau said that the department provides street maintenance which includes rights-of-way, sidewalks, curb and gutters, and snow plowing; public utilities for the City which includes water, sewer, refuse and recycling, and stormwater management; environmental services; fleet services; and the permitting, engineering, inspecting, and contract management necessary to support all these functions.  In addition to administration, there are seven division in Public Works: Operations and Maintenance, Transportation, Environmental Management, Water Plant, Fleet Services, Engineering, and Contract Management.

Mr. Simoneau stated that the Department of Public Works’ operating budget for FY 2009 is $23.1 million which represents an increase of $2.5 million or 12% over the FY 2008 adopted budget of $20.6 million.  There are 168 regular FTEs in the FY 2009 proposed budget, a net increase of nine over the FY 2008 adopted budget of 159.  

Mr. Simoneau said that there are four significant issues within his department: 1) the work on the water system with water treatment plant and sewer rehabilitation; 2) the enhanced stormwater management program; 3) the implementation of the refuse and recycling program; and; and 4) expected increases in fuel and energy costs.  Regarding fuel, Mr. Simoneau that it will probably be necessary to come back for a budget amendment mid year depending on how fuel costs as it is a very volatile.   He explained that, while there is enough money to begin fuel for the first half of the year, it is questionable how far that money will go. 

Councilmember Marcuccio asked about the increase in costs associated with traffic and transportation and Mr. Simoneau responded that this was primarily due to the needs of Traffic Demand Management (TDM).  Councilmember Marcuccio also asked about the increase in personnel costs, and she has the same observation about the increase in the operating budget for Public Works that she did with Recreation and Parks.  She said she did not feel that a 10% increase in the City’s population warranted the percentage of increase reported.  Mr. Simoneau said that everything has gone up; the cost of chemicals, salt, fuel.  He also said that it is not so much the increase in population as the increase in the number of miles covered with Fallsgrove and King Farm coming now online.  That has substantially increased the number of miles of city streets, pipes, sewers, stormwater management, etc. 

Police Department

Chief Treschuk introduced Mike Captain, the Field Services Commander, Tim Marsh, the Administrative Services Commander, and Victor Sajauskas, the Chief of Code Enforcement Chief, noting that Captain Bob Rappaport is absent this evening.  Chief Treschuk said that the main item he wished to highlight in his budget was the increase and accompanying expenditures related to the Speed Camera Program. 

Chief Treschuk also said there was one new position being proposed in Police Communications and Dispatch.  The Chief explained that the number of dispatch calls have increased considerably.  Also, the types of calls in terms of their complexity have increased.  This new position will help the Police Department to even out the workload a bit better.  This will also provide for an enhanced round-the-clock operations. 

Chief Treschuk talked about some of the other workload issues for the Police Department.  He said that a number of people have been in and out related to the war in Iraq.  He cited Sgt. Ron Merritt, who is being called back for his third tour of duty, this time for twenty months.  He said these are the kind of things that really can impact a department because while this person is away, other people need to do the work. 

In terms of the speed camera program and the revenue generated from it, the actual revenue reflects only 61% of the possible citations.  In other words, 61% have been reviewed and processed as suitable for actually receiving a citation. 
Councilmember Robbins spoke of the high esteem with which the City holds the City’s Police Department, and Chief Treschuk in particular.  In return, Chief Treschuk said that he appreciates the ongoing support of the Mayor and Council.  On a lighter note, Councilmember Marcuccio asked if the new police dog, Boomer, get along with Rocco, and Chief Treschuk responded that they get along well.  Councilmember Marcuccio also asked about the involvement with schools, Chief Treschuk cited the Every 15 Minute Program.  There was also discussion about the possibility of the speed camera radar bill coming back as it had been introduced at the legislature that the funding would stay with the state rather going to municipalities.  Mayor Hoffmann said that she had concerns that the state would try to close a significant deficit that way.

Information and Technology

Mike Cannon, Director of Information & Technology, said that his department as existed for about nine years.  He introduced Janet Hare, Chief of Networking Communications Support.  Mr. Cannon cited several significant changes that would occur this year.  These include: the implementation of the Granicus system of video on demand for Mayor and Council and Planning Commission meetings; support for the Thomas Farm; and support for the new personnel system; There are two new IT positions, one for support, that was requested.  In terms of the increase in workload, Mr. Cannon cited the growth in applications in information technology, saying that there had been a 40 % in network size over the last couple of years. 

Councilmember Marcuccio wondered how many homes in Rockville have cable versus dish reception and if there is a way to get the Mayor and Council meetings on that.  Mr. Cannon responded that there is no way to tie into the dish system, but it is hoped that the video on demand via the Granicus would help reach some of those individuals.  Also, once FIOS is available in homes, people would be able to receive the Rockville channel that way.

Human Resources

Carlos Vargas, Director of Human Resources, described that department stating that it provides a full range of human resource services.  The departmental budget for FY 2009 emphasizes a shift to technologically based programs that can be used by the employees or prospective employees themselves.  Mr. Vargas cited resume management, which enables applicants to apply and track their application online.  Currently, 90% of applications are received online.  Mr. Vargas said there has been a significant increase in applications from minorities as a result of the on-line application.  Mr. Vargas also cited the importance of increasing the electronic methods of employee “self service,” where employees can look at paychecks, leave slips, etc. online and manage that, to a great degree, by themselves.  In terms of the Talent Management System, there will be a greater emphasis on employee training.  It is expected that the position of the new training coordinator would help extensively with this.

Finance

Gavin Cohen, Director of Finance, cited the budget process, which he feels has improved significantly.  Additionally, the Finance Department is putting in processes in place to improve the business practices and workflow.  Mr. Cohen said they are looking to increase technology and the use of systems to provide for online customer complaints, online utility payments.  Piggybacking onto some of the comments made by Mr. Vargas and Mr. Cannon, Mr. Cohen cited improvements in the Human Resources and payroll systems, both of which must coordinate with Finance.  Also mentioned was the Financial Management System, which tracks expenses.  Mr. Cohen said the addition of the Kronos timekeeping system has automated tracking time for all City employees.  Mr. Cohen said that the key is to try to remove things that have been labor intensive.  He cited budgeting and transactions at the cashier window as areas he would like to improve using automation.  In terms of policy related issues, Mr. Cohen mentioned that there are a few things in process.  One would allow the revenue from rentals at Glenview to provide some things to improve an upgrade there.  Mr. Cohen also cited GASB 45. 

Councilmember Britton asked if there had been any progress of the establishment of an investment committee or an audit committee, referencing some of the information Mr. Cohen had given the Mayor and Council when the audit was presented.  One was an article from Coral Sea, Florida.  Councilmember Britton wondered what factors went into their receiving a higher rating, especially if some of that was related to the use of committees such as these.  Councilmember Marcuccio said that she, too, felt that an investment committee would be a good idea at the very least.  In terms of the number of individuals needed for such a group, Councilmember Marcuccio said she felt that three was a reasonable number.

Mayor and Council, City Attorney and City Clerk (Department of the Mayor and Council) 

Claire Funkhouser, City Clerk, said that she would defer the issues related to the City Attorney’s budget to City Attorney Paul Glasgow.  In terms of the Mayor and Council and City Clerk’s budget, Ms. Funkhouser said that there was nothing remarkable to report about the FY2009 budget.   The budget reflects the bi-annual election cycle, and since there is no municipal election this year, the budget for both the Mayor and Council’s budget and that of the City Clerk’s Office is lower than that of an election year.  

Referring to the Granicus system mentioned in the IT departmental report, Ms. Funkhouser said that it is hoped that this program will improve the accessibility of Mayor and Council meetings for citizens.  She said that there are increasing requests for people to see and hear matters for themselves, and that this video on demand system would allow people a more sophisticated way to track issues of particular interest to them.  

Regarding the Mayoral Transition and Advisory Group appointed by Mayor Hoffmann, Councilmember Marcuccio said that there had been no funding for this group.  She wondered if there was a discretionary fund that the Mayor and Council could dip into if they needed something along this line.  Mayor Hoffmann said she, too, was struck by the fact that there was no money for this and that all of the work had been done by volunteers outside the City.  City Clerk Funkhouser said that, while volunteers had done a great deal of the work, there had been in-house support in that Brenda Bean, Deputy City Clerk, had spent quite a bit of time providing administrative support to the group and to their consultants.  City Manager Ullery mentioned that there is a city-wide contingency fund for initiatives that the Mayor and Council wished to pursue which might require some funding.  

City Attorney Paul Glasgow then talked about the fees related to the City Attorney’s office.  He said that he sees no major projects on the horizon like the work that had been involved in the last six years, which included the development of Town Center and the complete revision of the Zoning Ordinance.  He said that obviously Town Center is complete and the rewrite of the Zoning Ordinance, the first in 32 years is winding down as well.  Several major lawsuits have also been winding down or are in the process of being settled, including Spates Bungelow, the Anderson House, the Twinbrook Monopole, Fortune Parc, and, possibly, the Town Square pavers. 

Despite this, Mr. Glasgow cautioned the Mayor and Council about the Zoning Ordinance rewrite, saying that when this was last done in 1975, there was major litigation filed against the City and this could be a possibility when the new Zoning Ordinance is passed later this year.  In general, however, Mr. Glasgow thought there would be a reduction in legal costs absent any major changes.

Councilmember Britton noted that there was a major discussion of costs, to look at outsourcing versus employing an in-house attorney, or a combination thereof, on this evening’s agenda later in the sequence of items.  Mentioning the Rockville Pike Master Plan, Mayor Hoffmann asked the City Attorney if he anticipated any problem with litigation with this item, and City Attorney Glasgow said that he does not anticipate this, but that anything could happen particularly if the Plan envisioned might possibly change land values.  That could possibly mean litigation costs sometime in the future. 

City Manager 

City Manager Scott Ullery introduced Deputy City Manager Catherine Tuck Parrish who is responsible for the day-to-day administration of the City Manager’s Office and serves as a department head in that capacity.  Ms. Tuck Parrish introduced Assistant to the City Manager Jenny Kimball, Assistant to the City Manager, Marylou Berg, and Organizational Development Specialist, Michelle Poche.   She said that the City Manager’s office also includes Graphics and Printing Division, the City’s Public Information Office including the City’s website, as well as the Council Support Services. 

Ms. Tuck Parrish cited the new position in the FY 2009 budget of training coordinator, stating that this position is very important.  She noted that Ms. Poche has helped lay the foundation for the work of this position in a number of ways.  Another new position in the City Manager’s office that is included in the budget is that of the Communications Specialist.  This position would have an emphasis on marketing, navigation of the webpage, electronic newsletter and social networking cites, and translation of most materials. 

Ms. Tuck Parrish indicated that there is also money in the FY09 budget for another citizen survey, which is done every two years.  She said this one would be done in the winter, rather than in the spring as before, so that it can be brought to the Mayor and Council earlier in the budget cycle. 

Councilmember Robbins said that she hopes that the Mayor and Council would be brought into the budget process earlier in the schedule.  Mr. Ullery said that he had already had been thinking about how this would occur.  One possibility would be to enhance the budget preview, which would take place in October to make it similar to tonight’s meeting.  Mr. Ullery said that he envisioned a similar format to the budget worksession, with each department presenting critical issues and describing significant changes anticipated in the FY10 budget.  Right now, the departments are involved in a similar process at the Senior Staff level.  He said he would like to find a way to expand it to the Mayor and Council for the budget preview.  Councilmember Robbins said she endorsed that approach.

In questions for Ms. Tuck Parrish, Councilmember Marcuccio asked if there could be a checklist on the survey based on the priorities laid out by the Mayor and Council and the TAG in terms of what people feel is of the most interest or importance to them.  Councilmember Britton then asked if there was a listserv of citizens who received various information.  Ms. Tuck Parrish said that there is currently a variety if listservs that exist, but that one of her departmental goals is to customize them more so that people could receive more specific types of information. 

Ms. Tate said that if there are no further questions of departments, there are still some outstanding issues to address, including the tax rate options in terms of which package to choose.  She reviewed four options, three of which included a $0.010 property tax rate reduction and one, which included a $0.012 property tax rate reduction.  Councilmember Marcuccio said that she was interested in the $0.012 option and wondered if there was a way for the custodial position at the swim center lasted as one of the cuts to be absorbed by the added revenue from not filling the CPDS vacancy.  Mayor Hoffmann said that she is uncomfortable with reducing maintenance at the Swim Center.  Mr. Hall said that it would not be an all or nothing; that he would probably use the custodial contract for six months and revisit the issue mid year.   Mr. Hall also described the fees that would be increased for seniors if that were the decision of the Mayor and Council to include that as part of the cuts. 

Councilmember Gajewski said that he is very comfortable with option 4, based on the $0.012 reduction in taxes, but remained concerned about the caregivers.  Mr. Ullery said that there may also be a way to restore the $11,500 for caregivers.  Councilmember Britton said that he was fine with letting staff work out the reductions, but reiterated that he would like to offer more in terms of community service.  He reminded everybody that property taxes are regressive; the Homestead Credit and the Senior Credit were progressive, not regressive.   Mr. Britton asked if there is a way to change the parameters for these; for example,  reducing the qualifying age from 70 to65.  Since that is based on the State law, Mr. Ullery responded that the City needed to abide by 70.   Mr. Britton asked if we could means test for some of the fees.  In the next budget process, he hopes that those restrictions and credits will be analyzed more carefully.  Mr. Cohen said that staff would try to work with the State Department of Assessments and Taxation over the summer to have a clear idea of what is possible for FY10.  Mayor Hoffmann said that she is in favor of this. 

Councilmember Robbins said that recently that the Mayor and Council had given very fine pay increases to City employees and she feels that employees should be more open to increasing amounts for nonprofits.  Councilmember Marcuccio said that while the tax credit may or may not be adopted year-by-year, a tax rate reduction reduces taxes on an ongoing basis. 

At this point, Councilmember Marcuccio moved to adopt Option 4, which would reduce the tax rate by $0.012.  Councilmember Gajewski seconded the motion.  There was a broad discussion about the pros and cons of the options in cuts from the other options presented that that might be preferable than those presented in this option.  The motion was withdrawn when the Mayor and Council could not agree on how the reductions that would be needed to realize the $0.012 tax reduction. 

Councilmember Gajewski made a motion to approve a modified version of Option 4, which he called Option 4A, which would reduce the tax rate by $0.010 by using the cuts described in Option 4, but not increasing the fees for senior programs and maintaining a larger transfer to the CIP for pay-go.  The motion was approved unanimously.

Re: In-H 

Councilmember Gajewski said that at the Mayor and Council retreat, the Mayor and Council had asked staff to come up with a model for possible using an in-house attorney, rather than the contractual services that are currently in place.  Recently, the Mayor and Council received an analysis, which Councilmember Gajewski said, although it had been marked “confidential,” he wished to release to the press and would be making a motion to that effect.  Councilmember Robbins said she would like the matter discussed in public.  Councilmember Marcuccio said she was concerned that what the Mayor and Council had received was not the final word and that some of the figures included in the analysis may be premature.

There was discussion about the best possible venue for airing the issue.  Mayor Hoffmann said that one of the reasons the information had been considered confidential was because it concerned a personnel matter between employer and employee.  If, however, counsel did not have a problem with the information being distributed and discussed, it could be a topic for the public.  Councilmember Robbins moved to have a public hearing, which was seconded by Councilmember Britton.  In discussion of the motion, Mr. Ullery was asked by Councilmember Marcuccio about one of the strategies suggested in terms of transitioning from contractual services to in-house services, that is, to work with a consultant.  Councilmember Robbins questioned how a consultant would be effective.  Councilmember Marcuccio said that this was not just a budget issue.  Councilmember Gajewski said that he did not feel that the Mayor and Council should not move so quickly as to make a bad decision, but that he did feel some sense of urgency.  He reiterated that he felt that the document that had been presented to the Mayor and Council was a good place to start.

Councilmember Robbins restated her motion to have a public hearing on having an in-house attorney versus contractual service at some future date.  The motion was approved unanimously.

Councilmember Gajewski made a motion to release the report publicly, which passed, with Councilmembers Britton, Gajewski, and Robbins voting, “aye,” and Mayor Hoffmann voting, “nay,” and Councilmember Marcuccio abstaining.  Councilmember Marcuccio also reiterated the need for more discussion on the possible transition.

Re: New Business

Mayor Hoffmann said she was planning to nominate Steven Johnson to be reappointed to the Planning Commission for another term.

There was also discussion about settling on a date for the Mayor and Council Retreat before the MML convention at the end of June.  Mayor Hoffmann asked that, in order to create an agenda for the meeting, people send their items for discussion to Mr. Ullery.  Councilmember Gawjeski said that it was his understanding that this would be an open meeting.

Councilmember Robbins reported that Science Day had been a wonderful success.

Re: Adjournment

There being no further business, the meeting adjourned at 11:50 p.m.