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HomeMy WebLinkAbout11/07/1989 Business Meeting 307 NOVEMBER 7, 1989 BUSINESS MEETING 1. ROLL CALL The City Council net in session on this date at 2:00 P.M. in the Council Chambers of City Hall, Yakima, Washington. Mayor Pro Tem Lynn Buchan presiding, Council members Clarence Barnett, Henry Beauchamp, Lynn Carmichael, Jerry Foy and Bernard Sims present on roll call. Mayor Pat Berndt absent and excused. City Manager Zais, City Attorney Vanek, City Clerk Roberts and Deputy City Clerk Toney also present. 2. INVOCATION The Pledge of Allegiance was led by Council member Carmichael. 3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER Council member Carmichael regretfully submitted her resignation from the City Council for personal and professional reasons, stating her resignation is effective immediately. Mrs. Carmichael listed numerous accomplishments that occurred during her ten years of service on the City Council and expressed her appreciation for the opportunity to serve the citizens of Yakima. It was MOVED BY FOY, SECONDED BY BARNETT, THAT THE OFFICIAL GAVEL OF THE CITY COUNCIL BE GIVEN TO COUNCIL MEMBER CARMICHAEL. The motion carried by unanimous voice vote. Berndt absent. Council member Beauchamp and City Manager Zais expressed appreciation to Mrs. Carmichael for all of the hard work and tremendous effort she has put forth over the past ten years as Council member. A brief discussion ensued regarding the Budget Review schedule with Council member Foy asking that the Public Works Budget be presented Saturday, November 18, 1989, and the Finance Budget presentation be rescheduled for November 28th, 1989. This was the consensus of the Council. Council member Barnett asked when the public hearing on the 1989 Preliminary Budget will be held and City Manager Zais responded that it will be on November 28, 1989. He stated there will not be a meeting the week of November 21st. Mayor Pro -Tem Buchanan read a proclamation in which the week of November 12 -18, 1989, was designated "American Education Week." Phyllis Frank accepted the proclamation. Mayor Pro -Tem Buchanan read a proclamation in which the week of November 6 -11, 1989, was designated "Yakima Centennial Week" and Saturday, November 11, 1989 was designated as the official Yakima celebration of Washington's 100th birthday. George Martin, Chairman of the Yakima County Centennial Commission, accepted the proclamation. Mayor Pro -Tem Buchanan read a proclamation in which November 10 -18, 1989, was designated "Yakima Centennial Steam Festival." Pat and Mick Temple accepted the proclamation. The Temples are responsible for bringing the steam engines to Yakima for this festival. 4. AUDIENCE PARTICIPATION None 5. CONSENT AGENDA Mayor Pro Tem Buchanan referred to the items placed on the Consent Agenda, questioning whether there were any additions or deletions from either Council members or citizens present. No changes having been requested, the City Clerk then read the Consent Agenda items, including resolutions and ordinances by title. It was MOVED BY FOY, SECONDED BY SIMS, THAT THE CONSENT AGENDA, AS READ, BE PASSED. The Motion carried by unanimous roll call vote. Berndt absent. (Subsequent paragraphs preceded by an asterisk ( *) indicate items on the Consent Agenda handled under one motion without further discussion.) AD /1 3 0 8 NOVEMBER 7, 1989 *6. SET DATE OF PUBLIC HEARING ON GREENWAY PARK PLACE SHORELINES PERMIT FOR NOVEMBER 14, 1989 November 14, 1989 was set as the date of public hearing on the Greenway Park Place shorelines permit. *7. SET DATE OF PUBLIC MEETING ON VACATION OF RIGHT -OF -WAY IN VICINITY OF 5 AND 7 NORTH 37TH AVENUE, REQUESTED BY MESSRS. HUCK AND SCHOCK FOR NOVEMBER 14, 1989 G November 14, 1989 was set as the date of public meeting on the vacation of right -of -way in the vicinity of 5 and 7 North 37th Avenue, as requested by Messrs. Huck and Schock. *8. REPORT FROM DEPARTMENT OF PUBLIC WORKS REGARDING PARKING ON 8TH STREET, "A" STREET TO YAKIMA AVENUE The report from the Department of Public Works regarding parking on 8th Street, "A" Street to Yakima Avenue, and referring an amendment to the Legal Department for the preparation of an ordinance, was accepted. 9. CONSIDERATION OF AN ORDINANCE GRANTING A FRANCHISE TO YAKIMA VALLEY DISPOSAL, INC. FOR COMMERCIAL REFUSE SERVICE (MATERIAL AVAILABLE MONDAY) John Wallace, .consultant attorney for the City, with the law firm of Ogden, Murphy & Wallace, stated the reason this franchise agreement and ordinance is before Council is that the City had Its 'attention drawn to the fact there is a state law that whenever a city annexes property` and there is a State certified private hauler servicing that annexed area, then that annexation cancels that State permit. However, the City is required to issue a franchise for not less than five years to the certified private hauler that lost that permit, which was not done in this instance. Even at the expiration of the five year period, the statute allows that hauler to seek additional damages if they can establish that fact. The City has the option to buy out the hauler through negotiations or condemnation rather than grant the franchise. He stated the City engaged in negotiations with the hauler which had been certified to service those areas annexed since March 6, 1963. He referenced Exhibit A, which was` a map illustrating the property annexed to the City since that time. He recommends the City authorize execution of the franchise agreement and approve the franchise ordinance. He said that this action is anti - competition, however, it is State law that the • City either grant the exclusionary franchise or buy out the hauler. Mr. Wallace responded to Council's questions regarding the proposed franchise agreement. State Representative Forrest Baugher stated he worked with Senators Matson and Hansen in these Utilities & Transportation Commission proposals. He said the thrust of the legislation was when you had an area that was annexed, then it was open to allow some competitive hauling. He asked that Council delay a decision on the proposed franchise agreement for 30 days until after the Utilities & Transportation Commission has issued a permanent permit for hauling services in these areas. City Manager Zais stated another reason this is before the Council is to deal with existing litigation that has been placed before the City. He said that upon the advice of legal counsel, the timing is such that it is recommended for enactment today; it's a settlement of that pending litigation to protect the interest of the City. If this action is not taken today, then that window of opportunity is foreclosed to the City. Prior to Boyd Hartman speaking in support of Superior Refuse, City Manager Zais commented that Mr. Hartman had previously provided Council with additional material. Boyd Hartman, attorney representing Superior Refuse, advised Council about his background in this area of the law. He said the only reason Council is faced with this litigation is because the Commission has decided again that this territory needs a competitive service. He stated that Yakima Valley Disposal has no right to bring any suit against the City for things that transpired so many years ago. The statute of limitation has run on many . of the annexations. He said that the City ordinance says that whoever has a certificate from the Utilities & Transportation Commission for commercial hauling is entitled to a license to contract that business. Since Superior Refuse has a AD /2 • NOVEMBER 7,.."1989 30 3 permit from the Utilities. .& : Transportation . . Commission for commercial hauling, and the Utilities & Transportation . Commission has jurisdiction over these areas, then Superior Refuse should be given a license by the City. He said that what Yakima Valley Disposal asked the City to do is to negate that action by the Utilities & Transportation Commission. He stated that the ordinance before the Council today is' not worth the paper it's written on. He said that the City's exposure controllable and there is no reason why two carriers can't provide that service. He noted areas where Yakima Valley Disposal has competition,. their rates are lower. He• said the only litigation before the City was that filed by Superior Refuse, not to collect money, but to get the City to issue a business license to Superior Refuse. If this lawsuit is a burden to the City as far as time is concerned, then we would allow the City the extra time to consider this fully. He offered to indemnify the City from lawsuits filed by Yakima Valley Disposal. If the City is going to be involved in any litigation, it appears to be a question of fairness in the way this was handled and they can't indemnify the City on that, which is not intended as a threat to the City, but merely a statement. He said the Utilities & Transportation Commission now has before it proceedings involving whether a license should be granted on a permanent basis to Superior Refuse for refuse service. The terms of this ordinance are intended to permanently negate any right Superior Refuse has to go before the Commission and prove there is a need 'for additional service. Mark Fickes, attorney with the Velikanje, Moore and Shore law firm, 'representing Superior Refuse, stated that the City Manager characterized the franchise agreement as a settlement for potential litigation. He commented that his client was' not given an opportunity to settle, and now Mr. Hartman has extended the same offer to indemnify. the City. The Utilities & Transportation Commission has assumed jurisdiction for these annexed areas and has given both firms a • temporary permit. He reiterated Mr. Hartman's argument regarding the statute of limitations having expired in' several areas previously annexed by the City. He said that all his client wants is to obtain the benefits of a temporary certificate from the Utilities & Transportation Commission and provide commercial service in these areas. By entering into this agreement, the City is taking legal action and telling Yakima Valley Disposal they have an exclusive right to operate.'He said his client's legal position will be pursued. Regarding the pending litigation, he said that is a mandamus action to compel the City to issue a license that is mandated by City ordinance, and he is convinced • he would be successful under that action. The City Legal Department wants to wait pending the decision on the franchise agreement, but they are two separate issues. He said the City could risk losing the residential hauling service since the City is required to grant a franchise for residential' and commercial. Apparently by this agreement, Yakima Valley Disposal is relinquishing the right to serve residential accounts. He said that is legal fiction which he believes the Yakima • County Superior Court will see through. Superior Refuse will pursue its mandamus action. The fair thing to do is to rely on the Utilities & Transportation Commission decision granting both carriers • an opportunity to service these areas. Paul Sears, AFSCME representative, said he is interested in the employee's risk and the public those employees serve. He asked Council to take a hard look at this and see .if they are endangering that aspect of the operation. Gary Ruse, businessman in the area, stated he is interested in having a choice in how to spend his money and open competition will give people the best services and best price. Harold Race, local businessman and realtor, reiterated what Messrs. Fickes and Hartman previously said. Since both carriers were granted a certificate, they both should be issued a III license so the business people of Yakima have a choice. Council members reviewed the temporary permits granted by the Utilities & Transportation Commission. Mr. Hartman stated that his argument is the City ordinance is what the Commission relied upon and that ordinance is still valid. He said their mandamus action is just as good tomorrow if the Council signs the proposed ordinance today.' The exclusion provision of the statute tied into the five year period and what Council is doing now is illegal. Mr. Wallace stated that this settlement agreement is to resolve all of the potential claims irrespective of what the statute of limitation is. He said in five years, October 31, 1994,, this agreement will expire, except for annexations which occur after Nov. 1, 1989, and at' that time, those areas will be subject to competition. He said there is no implied right of renewal in this AD /3 310 NOVEMBER 7, 1989 agreement. Council member Foy asked Mr. Wallace to respond to Superior Refuse's offer to indemnify the City. Mr. Wallace said the problem is that the City is still left with the obligation for the annexations less than ten years old where the City has not discharged its obligation under the statute. This proposal is to resolve all those unknowns. Mr. Hartman's comments made it sound like nobody talked to him; however, he said he returned Mr. Hartman's calls and had protracted conversations in which Mr. Hartman was told the City had an obligation and there was a need for a formal document. Referring to the proposed settlement agreement, Mr. Fickes stated the five years would be less .objectionable, than granting them a franchise for annexed areas going back twenty III years. He said that there were over 200 annexations during that time and this treats them all the same. The alternative to do nothing was explored by the Council, Mr. Wallace commenting that the City would still have that obligation under RCW 35.13.280 to grant a franchise and the length of limitation is between two and ten years. Council member Fay requested that the ordinance be read and that staff be authorized to sign the agreement. City Attorney Vanek stated the agreement is included as part of the ordinance, so only the ordinance has to be read for passage. Ordinance No. 3220 having been read by title, it was MOVED BY .FOY., SECONDED .BY`._ SIMS,, THAT:. THE ORDINANCE,' BE, PASSED. The Motion carried by unanimous roll call vote. Berndt .absent. Council member Barnett stated this has been a difficult decision and we should take care not to find ourselves in this position in the future. ORDINANCE ..NO.,. AN ORDINANCE granting to Yakima Valley Disposal, Inc., a franchise to collect and dispose of garbage and refuse on certain public streets in the City of Yakima. It was the consensus of the Council to proceed with the budget review for Engineering and Utilities following a brief recess. STUDY SESSION 10. SUBMITTAL OF COMPREHENSIVE 1990 PRELIMINARY BUDGET: BUDGET REVIEW DEPARTMENT OF ENGINEERING AND UTILITIES • In his opening comments, City Manager Zais stated this begins the 1990 Comprehensive Preliminary Budget Review Process with the City Council. The Preliminary Budget has been updated to reflect certain changes that occurred since the Forecast was submitted to the Council. Mr. Zais stated the principal adjustments include the proposed settlement for 1990 for AFSCME employees. The Forecast showed an increase of 5% but the budget documents indicate an increase of 7% due to the adjustment in the AFSCME settlement for 1990. Mr. Zais stated the other changes which affect the Sewer Budget and the Wastewater Facilities Capital Programs was a 2 million dollar reduction in the scheduled Major Capital Improvement Projects for 1990 as a result of some scheduling adjustments and delays in the funding cycle. He said Chris Waarvick will discuss that in further detail in his budget presentation. Under general comments regarding the Preliminary Budget, Council member Barnett connuented that the Capital Theatre narrative is very vague and does not give any source of funding. He commented that during the discussion of the Capitol Theatre's budget he intends to suggest that they , hold a bake sale to generate revenue. City Manager Zais responded that staff met with the Capital Theatre manager who requested additional revenue in the amount of $50,000 in their budget and the basic issue discussed was "should there be an admission tax or some other revenue source to pay for the $50,000 ?" Mr. Zais stated it was decided that this is not the appropriate time to recommend such a tax and Capitol Theatre management staff would like to spend the next six months or so discussing the issue in more comprehensive detail. Council members Foy and Barnett suggested that issue be withdrawn from the Preliminary Budget discussions under those circumstances. Mr. Zais stated Capitol Theatre staff has asked to make their presentation and he feels Council should hear it. He pointed out that they have asked for $50,000 but the Preliminary Budget does not contain a specific recommendation for funding; staff is trying to alert Council to a fiscal problem which needs attention. AD /4 3 U NOVEMBER 7, 1989 Mayor Pro -Tem left the Council chambers temporarily and yielded the gavel to Council member Beauchamp. Council member Barnett referred to page 213 which says Council will be approving the Downtown Futures Plan before December 31st, however, to date Council does not know the needs of the merchants and if Council approves the plan we have made a financial commitment for expenditure of funds. Mr. Barnett pointed out that on September 15, 1989 he requested information relating to the Downtown Futures Plan and he is still awaiting that information. He stated he does not want to act on that Plan until he has reviewed the response to the information he requested. Council member Foy commented it is premature to say that Council is going to adopt the Urban Plan when the Joint Board referred the Plan back to staff for changes and a public hearing prior to adoption. City Manager Zais stated the Downtown Futures Plan is scheduled for adoption by December 31st, however, if the Plan is not ready, Council cannot adopt it. Council member Barnett stated his concern is that he does not want to make a decision on the Downtown Futures Plan until he has had a response from Preston, Thorgrimson's office about some of his inquiries. He asked if Council approves this budget prior to December 15th and couunits those funds prior to adoption of the Plan, what is the status of those items? Does that mean Council has approved .them or not? City Manager Zais stated he will have to discuss this with Glenn Rice and Don Skone prior to answering those questions. Council member Barnett stated he had previously asked about the impact of. funding the unfunded liability for the police pension from the General Fund and he did not.,. find the answer in the budget narrative. Mr. Hanson stated staff will provide an expanded report which addresses the police pension funding issue and explains how the numbers were derived. He stated the money would have to be taken from the General Fund cash balance. Mr. Zais stated staff can respond to that issue during discussion of the Police budget. Council member Barnett asked that travel be added as a major policy issue for 1990 as there is a 15.5% increase over 1989. Council member Sims referred to page 51 and asked that the number of employees in the work force be added to this document. Mr. Hanson indicated that information will be added. Discussion occurred regarding the proposal to charge the Transit Department for the use of city streets. Council member Barnett stated if this policy is enacted, he feels every department should have to pay this type of fee. Council member Foy stated the voters agreed to assess themselves three mils for transit tax and he feels it would be a violation of the public's trust to use that money for other expenditures. He suggested reducing the three mil to one or two mil. Mr. Zais stated the logic behind that proposal was that we use Transit money for Public Works Capital Improvement Projects that are related to Transit activities. Engineering Dennis Covell, Director of Engineering and Utilities, and Dennis Whitcher, City Engineer were present to respond to inquiries about the Preliminary Budget for this division. Referring to page 429, Council member Foy asked how long is the City going to contend with the sewer back -ups that continue to occur on South 41st Avenue on a yearly basis? Mr. Covell stated the Kings Table appears to be the source of the problem as they do not have the proper grease trap. He said the Kings Table has been advised to install the proper device. He added that the Kentucky Fried Chicken establishment has the proper grease trap mechanism. He stated another reason that sewer back -ups occur in that area is because people have built on the right -of -way and created a situation where it is almost impossible for City crews to have access to clean the sewer lines. -on a regular. basis. Mr. Waarvick added that City crews are inspecting the line more frequently to make sure the grease trap is being cleaned. AD /5 • 3 2 NOVEMBER 7, 1989 Referring to page 436, Council member Barnett stated he would like to see a recommendation for reallocation of funding and /or trust funds to repair Browne Avenue. Council member Sims asked if Browne Avenue will be repaired with concrete or asphalt and Mr. Covell stated asphalt will be used to reconstruct the street because the City does not have ,adequate equipment, or the expertise, to manage concrete streets. Mr. Zais stated if the State Legislature and the Governor reach an agreement on the gas tax increase the City of Yakima will benefit in the neighborhood of $130- 150,000 over and above what the City currently receives. If they agree on the 7% proposal the City would receive upwards of about $250,000. Council member Sims asked if the portion of Browne Avenue under discussion of replacement is east or v,st of Hall Avenue and City Engineer Whitcher stated it includes Browne Avenue, from 16th Avenue east to Hall Avenue. Referring to the barriers listed on page 438, Mr. Foy stated he would like to cowliment both Dennis Covell and Dennis Whitcher for taking care of this issue as he has been very persistent about, this. He stated he appreciates staff taking care of this issue. Mr. Covell stated this is not the set of barriers Mr. Foy requested, but those barriers will be taken care of as well. This concluded the discussion of the Engineering Department's budget. Sewer Wastewater Superintendent Chris Waarvick was present to respond to Council's inquires regarding the Sewer Budget for 1990. Council member Barnett referred to page 449, asking if the additional employees requested were included in the Financial Plan for Rate Analysis and Mr. Waarvick responded, "No, this is a new request." Mr. Waarvick stated it was difficult to ascertain the maintenance needs until staff knew what type of equipment was required. Mr. Barnett asked if it would be possible to reduce the 16% increase scheduled for 1990? Mr. Waarvick responded that the revenue is needed to pursue our commitment to the 5.5 million dollars the City is going to spend for improvements. He indicated he would not recommend delaying or reducing the 16% increase scheduled for implementation in January of 1990. City Manager Zais stated that staff realized the 16% and additional 16% was not enough and knew that that had to be affected by other considerations as well, depending on the schedule of the grant process and the • bonding obligations facing the City. He said the Cost Service Analysis will provide a better picture of where we stand, and the preliminary information indicates that the revenue requirements will necessitate reviewing other revenue generating options which were previously deferred in order to sustain the revenue requirements for the program and the bonds obligation. City Manager Zais stated the Council made a commitment to allow the Cost Service Study to be completed by the County's consultant and the Council must uphold that commitment. Council member Sims asked when the Cost Service Report (being prepared by Chris Waarvick) will be presented to Council? Mr. Waarvick stated the report should be ready within three weeks for the City Manager to present to Council, after which it will be presented to the County Commissioners. Referring to page 454, Council member Foy asked that Chris Waarvick provide him with information regarding the return on investment of the additional three staff members hired in 1989. Mr. Waarvick indicated he will provide that information. Council member Barnett referred to page 461 asking how staff arrives at the 61.79% allocation for the City of Yakima and 38.21% allocation for the City of Union Gap? Mr. Waarvick stated he believes that is based on actual flow and contractural obligations. Mr. Barnett stated he would like to see the formula for these figures, and Mr. Waarvick stated he will check these figures and provide that information to Mr. Barnett. Council member Foy referred to the figures on page 461 under Impact Productivity Per.Million Gallons and inquired if there is something wrong with the system on Rudkin Road since there is a 16.9% increase over a three year period. Mr. Waarvick explained that the 1988 budget estimate was high and he actually spent less than he had budgeted so the cost per million gallons is lower than what he initially projected AD /6 313 NOVEMBER 7, 1989 in December of 1987. He said the actual. cost per million gallons pumped was $74.39 and the excess funds are carried forward every year. He added that unless problems occur in 1990, he anticipates he will not expend all of what he has budgeted. However, he added that since there is an increase in the productivity of per million gallons, staff is inspecting the system to see if there is a problem. Council member Barnett referred to the last two sentences under Professional Services,, asking if, these` are regulations that have come about` since the adoption of the Comprehensive Plan and Mr. Waarvick responded affirmatively. Council member Barnett expressed displeasure about the fact that the Department of Ecology and the Environmental Protection Agency continue to legislate mandates for the Sewer Treatment Facility even though the Comprehensive Plan has been adopted. Council member Beauchamp referred to page 469 and asked if this is a new Xerox copier staff is purchasing? Mr. Hanson stated the City has looked at the Xerox machine for purposes of uniformity as far as maintenance and service is concerned. He indicated this is the machine recommended • by Rick Pettyjohn in a report presented to Council previously this year. Council member Beauchamp pointed out that if a Xerox machine is purchased the City will also have to purchase Xerox paper which is much more expensive than other types of paper that could be used with a Savin copier. He indicated his office uses a Savin and it has proven to be an excellent copy machine. He suggested staff consider purchasing the Savin. . Council member Sims referred to page 472 and asked if the 10 million gallon reduction in the output of industrial waste is anticipated for 1990? Mr. Waarvick replied it is unknown at this time if Tree Top will be processing industrial waste at the'Sewer Treatment Plant in 1990. He said Tree Top has proposed building a sprayfield 'to the northeast of the plant, however, he is does not know if that will occur. Council member Foy referred to page 478 which indicates the base rate for City sewer utility has actually increased 26.3% over the past three years, adding $75,600 to the 16% gain and he feels this is another reason why the City should implement the surcharge for County residents. Council member Foy referred to page 483 which-indicates the replacement system is in place and performing well and it appears to be using less energy by approximately $20,00 to $30,000 per year. He stated the City was able to save $87,000 with all of these improvements that have been made. He said page 484 states construction is expected to be delayed until the summer of 1990 due to application complexities. Mr. Foy asked, "with all of this revenue, why do we need to increase the sewer rate another 16 % ?" City Manager Zais reminded Mr. Foy of the Comprehensive Financing Report that Council has just reviewed, stating the few gains in terms of one time revenues, or the options the City has in terms of delaying the construction projects, do not change the necessity for the revenue needs and requirements which are a part of that Cost of Service Study and the Surcharge Study. He stated the implementation of the surcharge is the only item that has been delayed: Mr. Foy rebutted that page 483 of the Preliminary Budget indicates construction has been delayed 3 to 4 months. Mr. Zais conceded that is true, however, that delay is based upon the timing in which the construction can be done. He stated the degree to which we are able to maintain a stronger reserve offsets the necessity for incurring as much debt as might be necessary and reduces debt service cost. Mr. Zais said if the City can pay for more in terms of cash reserves than what we use for bonded indebtedness, we are in a better position. Council member Barnett stated there will be additional DOE or EPA mandates that will use up those funds by that time. Water • Given the lateness of the hour, it was the consensus of the Council to discuss this portion of the budget on November 14, 1989. AD /7 31 4 NOVEMBER 7, 1989 11. OTHER BUSINESS None 12. ADJOURNMENT TO NOVEMBER 14, 1989 AT 8:30 A.M. AT YAKIMA CITY HALL FOR BUDGET REVIEW At 5:20 P.M. it was MOVED BY. BARNETT, SECONDED BY. BEAUCHAMP., ADJOURN TO. ' NOVEMBER :14TH AT ' 8:30 ` .A.M., TO CONTINUE' •;WITH ... PAGE 490 OF. THE PRELIMINARY-BUDGET. _The motio carried / ' .u nanimous voice vote. Berndt .absent. . READ AND CERTIFIED ACCURATE BY ® , CO C MEMBER / DATE 0/-7190 ATTEST: COUNCIL R DATE CITY CLERK ' MAY4• PRO -TEM Minutes prepared by Deputy City Clerk Barbara J. Toney, CMC. Item No. 9 by City Clerk Karen S. Roberts, CMC. AD /8