December 14, 2006 at 7:30 am
DRAFT
MINUTES
Members: Ron VanDee, Chairman; John Troy, Vice Chairman; Sean Clark, John Daniels, Danny Ross and Dan Tagliente
Others Present: Marilyn Brown, Chairman of the Legislature; Scott Schrader, County Administrator; Tom Williams, Legislator; Richard C. Van Donsel, County Attorney; Dennis Whitt, County Auditor; Rick McNeilly, Independent Auditor; Katrina Spicer, Secretary to Administration; Don Ferris, County Treasurer; Carolyn Kennedy, Deputy County Treasurer; Annette Barber, Personnel Officer; Bob Duell, Fire & Emergency Management Office; Corey Preston, Cortland Standard; Eric Mulvihill, WXHC; Matt Penello and John Carroll
Absent:
Newell Willcox
Mr. Van Dee called the meeting to order at 7:30 a.m.
Mr. Troy moved adoption of the minutes of the November 21, 2006 meeting;
seconded by Mr. Clark. All
members present voted in favor; none opposed; minutes approved as printed.
UNFINISHED BUSINESS:
1.
Award Bids, Law Library/Court Security
Renovation/Relocation
2. Award Bids, Courthouse ADA Ramp Construction – Mr. Tagliente moved adoption of Agenda Items 1 and 2; seconded by Mr. Troy. Mr. Schrader explained that these resolutions were pulled at the last Legislative Session because the funding source was not clear. He added that these have been presented to the Buildings & Grounds Committee and were approved by that Committee. Mr. Schrader explained that the total cost of the project was $620,000; the State funding would be $360,000 and the County would be responsible for $260,000. All members present voting in favor; none opposed; resolutions adopted.
3. Amend Management/Management Confidential Comp Policy Grade and Step Schedule for 2007 – Mr. Troy moved adoption; seconded by Mr. Troy. Mr. Schrader explained that this is the same Management Comp Plan resolution as last month. He added that a resolution was passed in Personnel Committee, which excluded the two Election Commissioners from the Management Comp Plan. Mr. Van Dee inquired about the legality of given elected officials a pay raise mid-term. Mr. Van Donsel explained that he is still research that. Chairman Brown expressed that she felt that this is an issue that can be worked out in January; she additionally expressed that she would like to give Mr. Van Donsel an opportunity to research this subject further. Mr. Van Donsel agreed. The consensus of the Committee was to have Mr. Van Donsel research this issue further and discuss it at the January Budget & Finance Meeting. All members present voting in favor; none opposed; resolution adopted.
Mr. Van Dee expressed that Mr. McNeilly is present and would like to report to the Committee. Mr. Van Dee turned the meeting over to Mr. McNeilly.
Mr. McNeilly provided a draft report to the Committee.
He explained that the entire scopes of his services have not yet been
completed. He additionally
discussed that he has reviewed records regarding the Capital Project fund and
is working to have a complete file on each project up to date through December
31, 2005. He further discussed
the first part of the report regards the reconciliation of records in the
Treasurer’s Office. He
discussed setting up a system to access the records in a timely manner.
He additionally discussed some procedures that should be put in place;
create a signoff sheet for each account, have Ms. Kennedy sign off on each
account once reconciliation has been completed, then have the Treasurer sign
off on each. He discussed that
this would keep a record of reconciliation and a timeline.
He recommended that the reconciliation be completed at the end of the
month that they are received or at the latest the end of the following month.
Mr. Van Dee expressed that accounts should be reconciled no later than
60 days after receipt of the statements.
Mr. McNeilly explained that this would keep all the account
reconciliation’s up to date and allow for improved record keeping.
Mr. McNeilly additionally expressed that if a problem arises with
reconciliation then the person reconciling the accounts would know that the
problem is in the current month’s statement because the previous month has
already been reconciled. Committee
members discussed the work completed by Mr. McNeilly and the work to be
completed before the end of the month. Mr.
McNeilly additionally explained the second part of the report and referred the
Committee to Appendix A. Mr.
McNeilly went on to point out that projects that are backed under bonds are
required to be closed out and the funds that are not used need to be
transferred to the General Fund Debt Service.
Additionally he pointed out that if the projects are not backed by debt
they still need to be closed out and funds can be transferred to the General
Fund or can be left in the Capital Project Fund.
Mr. McNeilly explained Appendix B shows projects listed by name
and number and also explained that these projects were still open into 2006.
He pointed out that he listed the recommended Budget Carryover for each
project into the 2006 Budget. Mr.
McNeilly further discussed the creation of a spreadsheet being prepared that
would assist Ms. Kennedy in tracking each project.
Mr. McNeilly further explained that Appendix A and B represent the bulk
of the work and he also pointed out that on page two are suggested actions
that would assist in improving the capital project files.
He added that this would have data available to manage in a timely
basis and discussed the need to have adequate information in a timely manner.
He recommended that the following information be placed in each project
file; all paid bills, all resolutions pertaining to the project and a
spreadsheet, which shows the amount carried forward annually, an annual
tracking of funds and reconciliation. Mr. McNeilly further discussed the Legislative resolution
process and suggested that all required dates and account numbers be on each
resolution. He further discussed that all expenditures and changes have full
Legislative approval not just Committee approval. Mr. McNeilly further discussed inner department communication
and that all information should be shared between the department and the
Treasurer’s Office. He went on
to discuss revenue and grant billing and that these are not being done in a
timely manner. Mr. McNeilly
recommended that the Committee set up some type of oversight of these problem
areas and to ensure that problems are brought to the Legislature in a timely
manner. Chairman Brown discussed
that this should fall under the oversight of the Audit Committee. Mr. Whitt explained that a resolution was passed by the
Legislature in 2005 and the intent of the resolution was not complete.
Mr. Whitt recommended that the Committee direct Mr. Schrader to draft a
similar resolution as 244-05 directing the Treasurer’s Office to correct
past errors in this regard. Mr.
Van Dee inquired as to how long it should take to input all information and
bring this to a close. Ms.
Kennedy discussed some problems that she has been having.
Mr. McNeilly discussed the resolution that Mr. Schrader may be drafting
and stated that is an attempt of management to correct problems and further
discussed ways to implement this. Mr.
Van Dee discussed Mr. Schrader drafting a resolution tog o before the floor of
the Legislature next Thursday regarding the closing out of 2005 of capital
projects and them a report be brought before the Committee in 30 days. Mr. Whitt discussed the intent of the prior resolution and
the fact that it was not completed. He
suggested that the Committee not ask why and put forth steps to correct things
from this point forward. Mr. Van
Dee expressed that he just wants it taken care of.
Mr. Whitt explained that the way to do this if to instruct the County
Administrator to draft a resolution to clear things up and in the future if
the Treasurer’s Office has any problems with Departments then he should
bring it to the attention of the Committee.
He discussed the committee dealing with any problems with any of the
departments. He further discussed
having the accounts reconciled by December 31, 2006 and that there is a great
deal of work involved. Mr.
Daniels addressed his concerns that there is a great deal of work involved in
this and that inquired if the Treasurer has the resources to have it all
completed properly. He stated
that he does not want to make an impossible task even more impossible.
Mr. Van Dee asked Mr. McNeilly for his input. Mr. McNeilly explained that most of the work has been
completed but the few things are left to finish are a great deal of work.
He recommended that the Committee speak with Ms. Kennedy regarding
this. Mr. Daniels also addressed
his other concern regarding setting up a system for tracking the capital
projects as Mr. McNeilly suggested and this being more work added on top of
what already needs to be completed. Mr.
McNeilly discussed that this work to set up the spreadsheets for capital
projects with be up t date as of December 31, 2005 and the work that is
involved is done annually and stated that about 2 days out of the entire year
this can be completed. Chairman
Brown expressed that in the end this will be easier for the Treasurer’s
Office. Mr. McNeilly expressed
that it is imperative that the bank statements being reconciled so that when
the Legislature and the County Administrator look at these at the end of the
year they be accurate. He also
address the capital project accounting being imperative because the
Legislature approves this funding and when changes are made the Legislature
needs to be aware of them. Mr.
Ross express that the Committees need to follow capital projects from
beginning to end. Mr. McNeilly
discussed the South Main/Page Green project and other projects similar in
nature. Committee members discussed the possibility of finishing
these things up before the end of the year.
Mr. Schrader explained that there are only 17 days left to finish all
this work and only Ms. Kennedy can do this.
The Committee members discussed the work involved in seeking completion
prior to the end of the year. Mr.
Ross made a motion to direct Mr. Schrader to draft a resolution to close out
the capital project accounts, to have the books reconciled prior to December
31, 2006 and to report back to the Budget & Finance Committee at the next
scheduled meeting; seconded by Mr. Troy.
All members present voting in favor; none opposed; resolutions adopted.
Mr. Van Dee thanked Mr. McNeilly for his report and recommendations. Mr. McNeilly inquired if the Committee would like him to report next month, January, with a finalized report. Mr. Van Dee stated that he would like to see his finalized report at the January Budget & Finance Committee Meeting.
4. Amend 2007 Budget to Reflect State Administered Non Property Tax (Sales Tax) to reduce Real Property Tax Levy Real Property Tax Service - Mr. Daniels moved adoption; seconded by Mr. Troy. All members present voting in favor; none opposed; resolution adopted.
5.
Levy County Tax City of Cortland
6.
Fix Date to Sign Warrants
7.
Levy Town Special District Taxes
8.
Levy Town General and Highway Taxes
9.
Levy Water Charges- Town of Scott
10.
Levy Water Charges- Town of Cincinnatus
11.
Levy Water Charges- Town of
Cortlandville
12.
Levy Water Charges- Town of Harford
13.
Levy Sewer Charges- Town of
Cortlandville
14.
Levy Sewer Charges- Town of Cuyler
15.
Levy Sewer Charges- Town of Virgil - Mr.
Troy moved adoption of Agenda Items 5 and 15; seconded by Mr. Clark.
Mr. Schrader explained that these are the same resolutions from last
month except they have the numbers on them.
All members present voting in favor; none opposed; resolutions
adopted.
BUDGET & FINANCE COMMITTEE RESOLUTIONS:
16. Amend 2006 Budget/Appropriate Reserve Funds General Fund Reserve For Debt – Mr. Daniels moved adoption; seconded by Mr. Clark. All members present voting in favor; none opposed; resolution adopted.
17. Departments to Provide Bank Reconciliation to the County Treasurer - Mr. Daniels moved adoption; seconded by Mr. Clark. Mr. Schrader offered a replacement resolution titled Adopt Policy and Procedure on the Collection, Handling and Disbursement of Departmental Funds. The Committee had no objections to the replacement resolution. Mr. Schrader further explained that this resolution replaces the other resolution with a resolution and a policy pertaining to that resolution. He expressed that the Treasurer’s version of the resolution did he did not go far enough and this replacement resolution takes the extra steps needed. He said that he believes that this will delineate the problems with Department and bank accounts. He added that this would handle issues that may arise. Mr. Schrader explained that this is a product what was recommended out the Single Audit Report. Mr. Van Dee expressed that he would like an eye kept on this after it has been passed. He requested that periodically the Treasurer’s Office report to the Committee. Chairman Brown recommended that possibly this is something that could fall under the oversight of the Audit Committee. Committee members discussed the oversight of this resolution to ensure that it is followed. Ms. Kennedy explained that she would like to make sure that this policy covers who has authorization to open bank accounts. Mr. Whitt explained that County and State Law cover this. He further discussed and explained that Departments have no authority to open a bank account without the Legislature and Treasurer knowing about it. Mr. Schrader explained that this part of the reasoning to develop this policy; to educate some Department Heads as to what they can and cannot do. Mr. Whitt discussed the penalties involved as it relates to this. Ms. Kennedy explained that some Departments open full-blown bank accounts not just petty cash. Mr. Schrader explained that the Treasurer has the authority to close out bank accounts and or take control of that account. All members present voting in favor; none opposed; resolution adopted.
18. Local Law No. 2 For The Year 2006 - Mr. Daniels moved adoption; seconded by Mr. Troy. Mr. Schrader explained that there was the presumption that things done in the past were done properly. He explained that an abstract of Local Laws were advertised and there is no Local Law that allows for this. He added that this would allow for an abstract of Local Laws to be published instead of the Local Law in its entirety. Mr. Schrader explained that this just cleans this up. All members present voting in favor; none opposed; resolution adopted.
Mr. Schrader asked if he could introduce another resolution. The Committee agreed to accept another resolution.
Authorizing Procurement of Property and Casualty Insurance - Mr. Daniels moved adoption; seconded by Mr. Troy. Mr. Schrader explained the second page of the handouts and stated that it is a summary by McNeil & Company. He explained that this is a 5% reduction in premiums. Mr. Schrader stated that this is to enter into a contract with the insurance company. All members present voting in favor; none opposed; resolution adopted.
Mr. Troy made a motion to go into Executive Session to discuss a legal issue; seconded by Clark.
Committee members discussed considering the Consent Agenda prior to going into Executive Session. Mr. Troy withdrew his motion to go into Executive Session and Mr. Clark withdrew his motion.
Mr. Van Dee explained that he was going to consider the Consent Agenda next.
Mr. Van Dee introduced the Consent Agenda, Items 19 through 28, and asked if there were any items to be pulled for discussion.
No items were pulled from the Consent Agenda for further discussion.
Mr. Troy moved adoption of the Consent Agenda, seconded by Mr. Clark.
CONSENT AGENDA
Referred from Health Committee:
19.
Authorize Agreement/Accept Funds/Jacobus
Center for Reproductive Health (State Grant)
21.
Amend Budget (NYS Office of Alcoholism
& Substance Abuse)
22.
Amend Budget (Family Support Services)
Referred from Highway Committee:
23.
Authorize Agreement/New York State Page Green Road Phase III P.I.N. –
375454
Referred from Human Services Committee:
24.
Amend Budget Area Agency on Aging (Point of Entry Program)
25. Accept Grant/Amend Budget/Authorize Agreement Youth Bureau (Member Item Grant)
Referred from Judiciary & Public Safety
Committee:
26.
Authorize Lease Agreement/ Cortland County Regional Training Center
27.
Authorize Agreement Cortland County State of New York Office of Technology
Office of the Sheriff/Fire Emergency Management
28. Authorize Agreement/Amend Budget (Governor’s Traffic safety Committee-STEP)
All members voted in favor; none opposed; consent agenda adopted.
Mr. Troy made a motion to go
into Executive Session to discuss a legal issue; seconded by Clark.
All members voted in favor; none
opposed; the Budget & Finance Committee went into Executive Session to
discuss a property acquisition issue at 8:21 am.
The Committee invited Mr.
Williams to stay for Executive Session. The
Committee requested Mr. Van Donsel, County Attorney, and Mr. Whitt, County
Auditor to stay in the room for Executive Session.
The Committee requested that Ms. Spicer stay in the room to take
minutes during Executive Session.
The Budget & Finance Committee came out of Executive Session at 8:55 am. The Committee reported nothing from Executive Session.
DISCUSSION/REPORTS:
Mr. Schrader explained that the two discussion items on
the agenda; the first an Update on Convention and Visitor Bureau and
the second a Recommendation for 2007
Occupancy Tax Allocation; were
being pulled from the agenda.
2007 Tax Reports – Real Property Tax Services – Town Special District Taxes Report 2007 and Town General & Highway Taxes Report 2007 were distributed to all committee members.
Election Commissioner Salary - Mr. Troy explained that the Personnel Committee has forwarded to the Budget & Finance Committee for discussion the 2006 unequal pay and discrepancy in salaries for the two Election Commissioners. Mr. Daniels inquired about the discrepancy being caused by the placement of the two election Commissioners in the Management Comp Plan. Mr. Daniels further explained that Personnel Committee has decided that they do not feel that the position should be in the Management Comp Plan. Mr. Schrader further explained that the two Commissioners must be equally compensated and because of that they cannot be in the Management Comp Plan because the plan has steps into involving time in service. Chairman Brown expressed that the law clearly states that they cannot be a part of the Management Comp Plan and further discussed that the County is required to set their compensation to equal amounts. She additionally explained that there would be a Local Law before the Legislature that will set their salaries to be equal for the years to come. Chairman Brown discussed further that there is a resolution, which removes the two Election Commissioners from the Management Comp Plan. She explained that this would then default their salary accordingly to a Local Law No. 2 of 2001. Chairman Brown went on to explain that there is Local Law No. 3 of 2006 that will be going before the Legislature that will set their salary equal to each other and equal to grade 10, step 1 of the Management Comp Plan. Committee members discussed the fact that these actions would be cutting the salary of one of the Election Commissioners. Mr. Van Dee expressed that it is not a reduction it is a correction. Mr. Schrader explained that the Republican Election commissioner has stated publicly that it is not about the money it is about the principle. Mr. Van Donsel express that all the Election Commissioner would like is that it be corrected. Mr. Tagliente inquired about other elected officials. Committee members expressed that Mr. Van Donsel should have time to research this and bring it back to the Committee in January. Mr. Whitt discussed the correction that is trying to be made and further discussed that the dispute that now exists is that one Election Commissioner was paid more in 2006 than the other one. Mr. Whitt informed the Committee of the possibility of this becoming an issue in the future and be reviewed by the courts. Mr. Van Donsel expressed that that there is no court review because there has not been a complaint filed. Mr. Whitt discussed the responsibility of eliminating the issue on unequal pay and paying him the difference. He added that then this would not be an issue. Mr. Whitt discussed further that if the County pays the difference for the current year then there would be no issue in the future. He added that if this were to become a court issue then it could be costly and added that this liability could be resolved by a few thousand dollars. Chairman Brown expressed that at this point it is not an issue. Mr. Tagliente expressed that he is in agreement with Mr. Whitt. Mr. Ross stated that he disagreed and Chairman Brown stated the same disagreement. Mr. Daniels discussed the Management Comp Plan and the Local Law as they relate to the Election Commissioner’s Office. Mr. Whitt expressed that there have been measures taken to correct this problem and that the outstanding issue that still remains is Mr. Wood possible claim of difference in pay than Mr. Howe. Mr. Whitt added that this could become very costly to the County. Mr. Daniels briefly discussed the pay difference. Mr. Van Donsel expressed that no request has been made and no legal complaint has been filed expressed his displeasure with Mr. Whitt discussing this openly. Mr. Whitt expressed that he only telling the Committee what they need to know. Mr. Van Donsel expressed that Mr. Whitt was giving legal advice and is address a settlement before a complaint has been filed. Chairman Brown discussed this briefly. Mr. Williams expressed that he understood that the letter that was written regarding this was to seek equality between the two positions. He added that the Legislature has looked at this and have adequately provided equality between the two positions. He expressed that the Election Commissioner’s Office has asked the Legislature for equality; the Legislature has resolved it and there have been no further requests. Mr. Ross and Mr. Van Dee were in agreement with Mr. Williams’s statement. Chairman Brown expressed that the Committee has been made aware, they have discussed it and there is no further action necessary at this time.
Mr. Troy made a motion to adjourn the meeting; seconded Mr. Clark. Mr. Van Dee adjourned the meeting at 9:14 a.m.