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HomeMy WebLinkAboutCCM-10-16-89CARMEL CITY COUNCIL MEETING MINUTES OCTOBER 16. 1989 CARMEL CITY MEETING HALL 7:00 P.N. The meeting of the Carmel City Council was called to order by Mayor Dorothy J. Hancock. Members present were Minnie Doane, Alan Potasnik, Annabelle Ogle, Lee Lonzo, David Adams, Frank Fleming and Tom Irvin. City Attorney Steve Andrews was present along with Clerk-Treasurer Susan Jones. The invocation was given by Councilor Doane followed by the Pledge of Allegiance. Councilor Fleming made a motion to approve the minutes of MINUTES: September 27, 1989 and October 12, 1989. Councilor Potasnik made a motion to amend the minutes of September 27th and insert the comment that he had asked if the Clerk-Treasurer had applied for all funds and she responded in the affirmative. The motion to approve the minutes with that amendment was seconded by Councilor Irvin. All members voted aye. Motion carried. Councilor Lonzo made a motion to change the CHANGES IN AGENDA: order of the agenda and allow the Fire Department to do their transfer request and sale of equipment request first so they wouldn't have to wait until the end of the meeting. Councilor Lonzo's motion also included an addition to the agenda for a Resolution 10-16-89-1 which was an amendment to Ordinance S-50. The motion was seconded by Councilor Potasnik. All members voted aye. Motion carried. Councilor RESOLUTION 10-16-89-2/TRANSFER OF FUNDS/FIRE DEPARTMENT: Lonzo made a motion to approve the following transfers within the Fire Department budget. The motion was seconded by Councilor Irvin. All members voted aye. Motion carried. $420.00 from #404 Linen Service to 403 Physical Examinations $2,500.00 from #467 Natural Gas to 471 Equipment Repairs $1,500.00 from #641 Motor Equipment to 642 Other Equipment Resolution 10-16-89-2 $1,000.00 from#465 Electric Service to #358 Other Supplies Councilor Lonzo noted that with the request of $2,500.00 from Natural Gas to Equipment repairs in order to repair a leak in the above ground diesel fuel tank this year rather than next year as previously requested that the amount of $2,100 would be "freed" up in the 90 budget. Chief Couts agreed with that observation. Chief Couts outlined the request for SALE OF OLD FIRE EQUIPMENT: the disposal of old fire equipment and asked for authorization from the Council to begin negotiations with the Town of Westfield for the purchase of old fire equipment. However, one of the trucks belongs to the township and the money would revert back to the Township. Chief Couts stated he was working with the City Attorney in order to do the sale correctly under state statute. Councilor Irvin so moved. The motion was seconded by Councilor Doane. All members voted aye. Motion carried. Councilor Lonzo ORDINANCE D-62/TRANSFER OF BUDGET FUNDS ORDINANCE: made a motion to table Ordinance D-624 until the November 2Oth Council meeting. Councilor Lonzo stated the committee to examine procedure on transfers would have a report by then. The motion was seconded by Councilor Ogle. All members voted aye. Motion carried. Councilor ORDINANCE D-625/PART-TIME POSITIONS/SALARY FOR 1990: Lonzo made a motion to table this Ordinance until November 6th because the DOCD and Utilities were still working on gathering the information requested. The motion was seconded by Councilor Fleming. All members voted aye. Motion carried. Steve Andrews explained that he ORDINANCE A-62/WELL DRILLING ORDINANCE: and Jim Dougherty were working on the "language" problems with this ordinance and would probably have it back to the Council by November 20th. A motion was made to table this Ordinance until November 2Oth was made by Councilor Potasnik. The motion was seconded by Councilor Adams. All members voted aye. Motion carried. A motion was made by ORDINANCE D-611/ELECTED OFFICIALS SALARY 1990: Councilor Lonzo to table this ordinance until the first meeting in December in order to study the financial status at that time. The motion was seconded by Councilor Irvin. All members voted aye. Motion carried. At this REPORT FROM CLERK-TREASURER ON STATUS OF FINANCES/GENERAL FUND: time, President Lonzo asked the Clerk-Treasurer to go over the final report she had mailed to Council members over the weekend. The Clerk- Treasurer stated she had used some of the suggestions of the Mayor, suggestions from outside sources and tried to strike some kind of a happy medium on projections. The Clerk cautioned the City Council that all of these reports regardless of which one you wished to believe were still based on projections and not actual revenues. The Clerk-Treasurer reported her current bank balance as of 4:30 this afternoon was a negative $597,982 and that with the optimistic projections and if every department does not spend within 5% to 10% of their 1989 budget, we just might make it on December 31st with a zero balance but would promise nothing. The Clerk stated that monies would have to be received from the sewer utility fund in the amount of $250,000 for property taxes would have to be received and also the Fire Pension (City contribution to PERF for two Firemen) would also have to be considered. The Clerk suggested that the Council consider returning that money to the Fire Pension fund should it not be needed in the General Fund at the end of the year. A letter was presented by the State Board of Accounts outlining the procedure for such a transfer. The Clerk- Treasurer also stated that problems still exist with January 1990 expenditures. Estimated payrolls were at $250,000 each, insurance of $290,000 was due January 1st and with the communications center request of $500,000 it was going to be very rough. Councilor Potasnik wanted to know the history behind departments not spending all of their budgets. Clerk-Treasurer Jones said she had no way to check the history of that since it wasn't kept on a computer and would literally take days to reconstruct that kind of information. Councilor Potasnik asked the Mayor if she could elaborate on the suggestion that Departments historically do not spend all of their budgets. The Mayor said she thought that was true but had no real figures to base that on. Councilor Potasnik stated that if the Clerk- Treasurer would provide him the annual reports, he would do the work in order to derive some kind of history on this. The Mayor stated that she had talked with all of her Department Heads and assured the Council they were not spending any money they didn't need. Councilor Lonzo asked the Mayor if she was prepared to alert the Department Heads that they may not be able to spend all of their budgets should the need arise. The Mayor assured the Council she was. The Clerk-Treasurer offered to send the Mayor a recap of Department expenses every time there was a claim period so she could keep on top of where everyone was at in their spending. The Mayor stated that would be very helpful. It was determined that most Departments are right on target for their spending for this year. With the year 75% complete, the Departments were right around 70% spent. ORDINANCE D-603/ECONOMIC DEVELOPMENT COMMISSION/RETURN OF FUNDS TO THE A motion was made by Councilor Lonzo to remove CLERK-TREASURER: Ordinance D-603 from the table and act on D-603 tonight. The motion was seconded by Councilor Potasnik. All members voted aye. The Mayor stated that she had called a joint meeting of the Economic Development Commission, the Chamber of Commerce, President Lonzo and Wes Bucher on Wednesday, October 18, 1989 at 7;00 P.M. at the Fire Station, to discuss the future of the EDC. Mayor Hancock then called for the vote. All members voted nay. Ordinance D-603 failed to passed by a unanimous vote. RESOLUTION 10-6-89-l/PROPERTY TAX MONEY FROM SEWER UTILITY FUND: A motion was made by Councilor Lonzo to approve Resolution 10-6 89-1 and approve the expenditure of $250,000 in property taxes from the Sewer Utility Fund to the General Fund. Councilor Potasnik seconded the motion. Councilor Potasnik questioned why this had been omitted from the Sewer Utility budgets. No answer was given except Steve Andrews suggested it was just an inadvertence on the part of the utility. All members voted aye. Motion carried. Councilor Lonzo SECTION 125/PREMIUMS ONLY/FLEX PLAN/LINCOLN NATIONAL: explained to the Council that a lack of communication had developed on everyone's part in explaining the program and in explaining the committee's wishes on this benefit. Councilor Lonzo stated he thought the committee was for the Flex Plan under Section 125 and was shocked to see it removed and/or voted down at the last Council meeting. Councilor Irvin again stated that he was against any added expense to the General Fund at this time and that is why it was voted down. The Mayor stated she had not explained the reason for the change in the additional appropriation very well at the last meeting and that probably caused the confusion. It was the consensus of opinion that the City would continue to do Section 125 Premiums only by January 1, 1990 but would not do any Flex Plan program. Clerk-Treasurer Jones explained the difference between the two programs and the cost breakdown and also stated she talked with Lincoln National representatives this week who confirmed that they would not do a Premiums Only program without commitments to the Flex Plan and the total cost would be $6,000 just from Lincoln's side not including an additional $1,200 to $3,000 for software changes and redesign of payroll checks. Jones also brought up problems with Lincoln National in the lack of support she was receiving and considering this benefit dealt with an employees income tax she felt very, very uncomfortable without some kind of review and back-up from the Lincoln people. Several times it was discussed that Lincoln did not do a premiums only plan but it had to be done with both plans in mind. Lincoln would agree to doing premiums only for a cost of $1,500 in 1989 and the remaining $4,500 to be paid in 1990. Councilor Irvin asked if money had been budgeted in 1990 for the Flex Plan benefit. The Clerk-Treasurer and the Mayor stated no. Councilor Potasnik and Councilor Ogle questioned why no other quotes had been taken and did other companies do this kind of work. The Mayor stated the reason Lincoln had been selected was because they were already our health care carriers. Councilor Fleming asked who would be explaining this complicated plan to employees. The Mayor stated that the carrier would do that job and that was part of the "start up" costs. Councilor Fleming asked who would be explaining this program to new employees after the initial employee meetings were held. The Mayor stated it would be the "new" person in her office. It was the final decision through a motion made by Councilor Lonzo that a recommendation be made from the insurance committee on this and quotes be taken from other carriers should Lincoln not be interested in doing the Premiums only plan without any commitments for the Flex Benefit. A budget of up to $2,700 would be used ($1,200.00 from Federal Revenue Sharing that had been approved and $500.00 from General Fund(BPW Insurance and $500.00 from each utility) in order to get the Premiums Only plan up and running for January 1990. The Clerk-Treasurer stated she was running out of time for this deadline unless a carrier could be found very soon but that every effort would be made since it was not only good for the employees but would save a considerable amount on our matching share of FICA taxes. The motion was seconded by Councilor Potasnik. All members voted aye. Motion carried. The Clerk-Treasurer asked that she be included on all discussions and meetings concerning Section 125 since the majority of work for this plan would be done out of her office. Councilor Lonzo agreed. A transfer in the TRANSFER/RESOLUTION 10-16-89-3/COUNCIL BUDGET: amount of $150.00 from #250 (Travel) to #301 (Stationary) was approved in the form of a motion made by Councilor Lonzo and seconded by Councilor Potasnik. All members voted aye. Motion carried. Councilor- TRANSFER/RESOLUTION 10-16-89-4/CLERK-TREASURER BUDGET: Lonzo made a motion to approve the following transfers for the transfer of funds within the Clerk-Treasurer budget: $480.00 from #202 Health Insurance to Salaries #101 $325.00 from #250 Travel to Salaries #101 $200.00 from #250 Travel to PERF #203 $175.00 from #442 Telephone to Printing #452 $205.00 from #442 Telephone to Postage #4441 $120.00 from #453 to Maintenance Contract $475 The motion was approve by Councilor Adams. All members voted aye. Motion carried. Clerk-Treasurer Jones stated the reason for money needed in salaries was due to a raise the City Council and Mayor had given to all employees the first of the year and the money for those raises ($60,000) was still in BPW budget but that the Departments had been instructed to look for their raise money within their own budgets for 1989 so that $60,000 would not have to be spent. The Clerk cautioned the Departments to also look for matching PERF and FICA money also for those raises. A motion was then made by Councilor Lonzo to pass Resolution 10 16-89-4 allowing the following transfers within the Clerk-Treasurer budget. The motion was seconded by Councilor Irvin. All members voted aye. Motion carried. $100.00 from #442 Telephone to #358 Other Supplies $200.00 from #453 Publications to #358 Other Supplies $500.00 from #453 Publications to #301 Printing Councilor Lonzo welcomed CHTV to the City Council. CHTV ANNOUNCEMENTS: will be televising all meetings of the Council and will be aired on Channel 29. Councilor Lonzo also stated that students of CHS would be doing a leaf raking and leaf disposal program this weekend. There being no further business before the Council, the meeting was duly adjourned. APPROVED: Dorothy J. Hancock, Mayor ATTEST: Susan W. Jones, Clerk-Treasurer