Re: Review & Comment of the Third Quarter FY 2008 Financial Report

Budget Officer Stacey Tate introduced this item and said that this report represents FY08 revenue and expenditure data for the City’s General and Enterprise funds.  The report includes FY08 adopted budget, FY08 amended budget and FY08 actual expenditures and revenues as of March 31, 2008.   She highlighted a few changes to the document since the last iteration.  She said that the savings in personnel is shown in the report from vacancies throughout the year.  Ms. Tate also mentioned changes to the interest earnings revenue and said they would be reflected in the Enterprise Funds.   Ms. Tate said that the audited FY07 fund balance was $15.7 million and the estimated FY08 fund balance was $11.1 million, which is $2.3 million more than the target minimum FY08 balance of $8.8 million.  The projected General Fund revenues and projected General Fund expenditures include the adjustments that are recommended as part of the May 19, 2008 budget amendment.   Ms. Tate pointed out other variances having to do with limited growth in assessed value of personal property due to the number of businesses that focus on technology, income tax revenue increase of $500,000, the gas/vehicle tax being $100,000 lower than the estimated amount in amended budget, increase in revenue for the Building and Public Works permits, and Fire Review fees.  She also mentioned an increase to the Refuse Fund, stating that this is because of revenue received from the sale of recyclables.   Ms. Tate then concluded her report. 

Councilmember Marcuccio asked about the $1.1 million from personnel vacancies.  Ms. Tate responded that this occurs because most employees are hired at a lower than the position was budgeted for.  Ms. Marcuccio asked about the status of a staff report on the prospective Finance/Investment/Audit committees, and Mr. Cohen responded that he is working on a report and would complete it very soon.  Ms. Marcuccio added that she would like to see a balance sheet periodically.   Mr. Cohen said that he extract that information from the program they currently use and provide a sample to see if they like it the format. Councilmember Marcuccio asked Ms. Tate why no personnel was allocated for the Town Center item and Ms. Tate responded that it relates to design and construction contracts and no City personnel is tied to those two items.

Regarding the $2.2 million being carried through the fourth quarter, Councilmember John Britton asked what would become of that, and Ms. Tate responded that they would come back to Mayor & Council for direction but that it would be best to be used with one time expenditures.

Regarding the garage debt and the fund balance of $4.6 million, Councilmember Marcuccio asked how is it decided what goes into the fund and if that amount is a cushion, then we might not need to put as much in to the garage fund.  Ms. Tate responded that we have been utilizing pieces of that balance and spending it down slowly to keep a certain percentage in place. 

Re: Introduction and Adoption of Ordinance to amend Ordinance 1 (A) -08 to appropriate Funds and Levy Taxes for Fiscal Year 2008

Ordinance No. 6-08

Ms. Tate said that most of these items have been presented through the quarterly report and highlighted some of the adjustments to the overall revenues.  The Special Activities Fund is increased because of a new contribution from Fallsgrove that will be used to replant trees in the Fallsgrove neighborhood.  She said that the Recreation Fund amendment would increase the available funding for recreation scholarships.  One change to the CIP budget would be to add a new Water Facility Fund CIP project, originally projected for FY09, but necessary now so the contract can be awarded for the replacement of the residential water meters before the start of summer.  Regarding the City’s share of the highway revenue, Mayor Hoffmann asked what we receive.  Mr. Ullery responded that after Baltimore receives its share, the revenues will be divided among the State (70%) and the counties and municipalities (30%), based on road mileage and vehicle registration.

At this point, Councilmember Marcuccio moved to introduce the motion to adopt the ordinance and waive the layover period.   Discussion about the layover period ensued and Mr. Cohen said that the next two items on the agenda could not be adopted unless the layover period for this item is waived.   Councilmember Marcuccio moved to waive the layover period and Councilmember Britton seconded that motion. 

In further discussion, Councilmember Gajewski said that he had concerns with waiving the layover period because of due process and Mayor Hoffmann said that this case is an unusual occurrence and rarely happens.   In order to get the contracts awarded for water meter replacement so that work can begin this summer, it had to be done by waiving the layover period.  Mayor Hoffmann said that, in the long run, doing it this way would realize a savings to the City.  The motion to waive the layover period was unanimous. 

Upon motion of Councilmember Marcuccio, duly seconded by Councilmember Britton and unanimously passed, Ordinance No. 6-08, introducing and adopting Ordinance to amend Ordinance 1 (A) -08 to appropriate Funds and Levy Taxes for Fiscal Year 2008, was approved. 

Re:  Adoption of Resolution to Close Completed Capital Improvement Program (CIP) Project Accounts

Resolution No. 6-08

Ms. Tate introduced this item and presented the background.  She said that nineteen CIP projects are recommended for closure in FY08 and these projects are funded from water, sewer, stormwater management and capital project funds.  Of the nineteen projects, six have unspent appropriations as of May 12, 2008.  At the end of the fiscal year, any unspent appropriations will be returned to the fund from which the appropriations were made, unless the project was funded from an outside source.  She then summarized those projects. 

Upon motion of Councilmember Britton, duly seconded by Councilmember Marcuccio and unanimously passed, Resolution No. 6-08, to adopt and close Completed Capital Improvement Program (CIP) Project Accounts, was passed. 
Re: Award of Bid #56-08, Residential Water Meters Replacement Program

Ilene Lish, Civil Engineer, introduced this item stating that this project is part of the May 19, 2008 budget amendment.  She said that it was created to track and manage the residential portion of the meter replacement project and the goals include replacement of old meters, which have outdated technology, with new technology.  She said that this would enable the City to accurately track water consumption for billing purposes, as well as monitor and evaluate community water demands. 

Commenting on the commercial meters, Councilmember Britton asked when we might be able to calculate the increase in revenue achieved by meter replacement.   Ms. Lish responded that, in some cases, the savings have been as high as ten to twenty percent.  She said that some of those accounts have increased, but there has not been a full-scale analysis yet on those meters.  Councilmember Britton asked if the City had an indication from the vendor on what additional revenues might be expected for the new residential meters and, commented that might affect water rates. Mr. Simoneau responded that it is would be difficult to tell because of how inaccurate our current meters are.   Mayor Hoffmann said that, ultimately, they would be able to calculate this percentage and that it would be very interesting to know.

Upon motion of Councilmember Marcuccio, duly seconded by Councilmember Britton and unanimously passed, the purchase of the water meters for the residential water meter replacement program was authorized.

Re: Purchase of Water Meters for the Residential Water Meters Replacement Program.

Ilene Lish, introduced this item and recommended that the Mayor and Council award a separate sole source contract to L/B Water Service Inc. of Chambersburg, Pennsylvania to purchase approximately 5,000 Sensus radio-read water meters, in the amount not to exceed $1,400,000 using the City’s current multi-year, sole source contract with L/B Water Service, Inc.  She said that 5,000 would be installed this summer and an additional 5,000 would be installed next fall.

Upon motion of Councilmember Britton, seconded by Councilmember Marcuccio and unanimously passed, the purchase of the water meters for the residential water meter replacement program was authorized.

Re: Approval of Modification to the Master Agreements under IFB #13-07 for the Annual Concrete Maintenance Program

Craig Simoneau introduced this item stating that this program provides contracted construction services for repair, replacement and maintenance of the City’s infrastructure, including sidewalks, curbs, driveway aprons, storm drains, bridge repairs, minor asphalt work, and other small projects as needed.  He said that this project also funds the construction of geometric intersection and pedestrian safety improvements and compliance with the City’s ADA requirements.  Specifically, tonight’s request is for another modification to that agreement. 
Upon motion of Councilmember Marcuccio, seconded by Councilmember Britton and unanimously passed, approval of modification to the Master Agreements under IFB #13-07 for the Annual Concrete Maintenance Program was granted.

Re: Adoption of an Ordinance to Appropriate Funds and Levy Taxes for Fiscal Year 2009

Ordinance No. 7-08

Ms. Tate introduced this item and talked, generally, about the changes to the various funds and stated that they could be found on Attachments B-1 and C-1.  She said that total operating budget is at proposed Operating Budget for all funds for FY 2009 is $102,727,640, an increase of approximately 9.5% over FY 2008. 

Regarding the tax rebate, Councilmember Marcuccio asked about a rebate program for senior citizens.  Ms. Tate said that staff will work with the state this summer to iron out the details and this could possibly be included in next year’s budget.   Ms. Tate said they would have something to present to the Mayor and Council by the end of the summer.

Upon motion of Councilmember Piotr Gajewski to amend the ordinance that was introduced to reflect the changes discussed, duly seconded by Councilmember Marcuccio, and unanimously approved, Ordinance No. 7-08, to appropriate funds and levy taxes for Fiscal Year 2009, was adopted as amended.

Councilmember Gajewski thanked staff for their efforts with this budget document.  He said that he always got his questions answered and appreciates that very much.  He said the City has a great budget and is maintaining a great level of service and again expressed his appreciation to all.  

 
Mayor Hoffmann also expressed her thanks to staff, stating that she especially appreciated them for finding a way to allow the Mayor and Council to find a savings for residents.  She said it is indeed a pleasure to work with everyone on this document. 

Re: Adoption of an Ordinance to establish a tax credit against City taxes imposed on real property to offset increases in City income tax revenues in the amount of $100.00 to eligible homeowners for fiscal year 2009

Ordinance No. 8-08

Ms. Tate introduced this item stating that adoption of this ordinance would establish a tax credit against City taxes imposed on real property to offset increases in City income tax revenues in the amount of $l00.00 to eligible homeowners for fiscal year 2009. 

Assistant City Attorney Sondra Block mentioned an omission of a reference to Chapter 22. 

Upon motion of Councilmember Marcuccio, duly seconded by Councilmember Britton and unanimously passed, Ordinance No. 8-08, establishing a tax credit against City taxes imposed on real property to offset increases in City income tax revenues in the amount of $100.00 to eligible homeowners for fiscal year 2009, was adopted, as amended.

Re: Adoption of a Resolution to establish the Fiscal Year 2009 service charge for municipal refuse collection pursuant to Section 20-6 of the Rockville City Code

Resolution No. 7-08

Upon motion of Councilmember Britton, duly seconded by Councilmember Gajewski and unanimously passed, Resolution No. 7-08, establishing the FY2009 service charge for municipal refuse collection pursuant to Section 20-06 of the Rockville City Code, was adopted.

Re: Adoption of Ordinance to amend Chapter 24 entitled "Water, sewers and sewage disposal," Article III, "Rates and Charges" to establish water and sewer rates for each fiscal year from FY 2008 through FY 2013; and to amend the monthly Ready-to-Serve charge

Ordinance No. 9-08

Ms. Tate introduced this item stating that the only change is in the Water Fund.  The earlier version showed option 2B, and this ordinance shows Option 2C.

Upon motion of Councilmember Marcuccio, duly seconded by Councilmember Britton and unanimously passed, Ordinance No. 9-08, amending Chapter 24 entitled "Water, sewers and sewage disposal," Article III, "Rates and Charges" to establish water and sewer rates for each fiscal year from FY 2008 through FY 2013; and to amend the monthly Ready-to-Serve charge, was adopted as amended.

Re: Future Agendas

City Manager Ullery reported that the meeting scheduled for June 2nd would no longer occur, instead using that date for the Mayor and Council retreat.  Mr. Ullery said that negotiations on a previously rejected piece of artwork in Town Square have been reopened, and that item will come before the Mayor and Council on June 9.  

Re: FYI/Correspondence

Councilmember Marcuccio reiterated her comment regarding the Zoning Ordinance process.  Because of the amount of work that went into the document and the length of time involved to produce it, she does not wish to rush it through in such a short period of time. 

Re: Old / New Business

Councilmember Gajewski mentioned the Town Hall meeting he recently held and a number of concerns that were discussed.   He said that it is an appropriate venue to address citizens and to get their questions answered.

There was discussion on the Mayor and Council retreat and whether to move the date from June 4 to June 2 since the Mayor and Council regular meeting would no longer take place on June 2.  There was consensus to move the retreat to June 2 at 6:00 pm.   After a broad discussion on the merits of a retreat closed to the public versus a regular meeting that is open to the public, it was decided to hold the retreat on June 4, and half of the meeting would be open, and half would be closed.      

Mayor Hoffmann asked about the status of long term parking in garages and Mr. Ullery responded that we have just reached the six-month review period.  Currently, long-term parking is restricted to employees in Town Square.  The request for more additional long-term parking would be made after the review period.  

Councilmember Britton mentioned a Freedom of Information Act request that was recently filed with the State by the Move the Courthouse citizen group.  The state responded stating that they would charge $40.00 per hour for staff time and estimated the cost to be in the neighborhood of $1,800.  Mr. Britton thinks this to be unreasonable and asked the City to consider writing the state, on behalf of the citizens.  There was consensus to send a letter to the State.  Mayor Hoffmann asked that the Mayor and Council be provided with a copy of the request to the state, and the state’s response, and any other relevant documentation.

Re:  Adjournment

There being no further business, the Mayor and Council adjourned at 9:08 pm.