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Home My WebLink About06/07/1988 Business Meeting 362 • JUNE 7., 1988 BUSINESS MEETING /STUDY'SESSION 1. ROLL CALL The City Council met in session on this,date.at ,2:00 . P.M. in the Council Chambers of City Hall, Yakima, Washington. Mayor Pat Berndt, presiding, Council members Clarence Barnett, Henry Beauchamp, Lynn Buchanan, Lynn Carmichael, Jerry Foy and Bernard Sims present on roll call. City Manager Zais, City Attorney Vanek, City Clerk Roberts and.Deputy City Clerk Toney also present. ; 2. INVOCATION The Invocation was given by Council member Beauchamp. 3. OPEN DISCUSSION FOR THE GOOD OF THE.ORDER Mayor Berndt read a proclamation designating the week of June 6 -11, 1988, "Management Week" in the City of Yakima. The proclamation was accepted by Wayne Louk, representative of National Management Association. Mr.. Louk issued an invitation to City Management and supervisors, County Government, and other agencies with an interest in promoting good management principals to join his organization. Mayor Berndt read a proclamation designating the week of June 5 -11, 1988, "Western Days" in the City of Yakima. The proclamation was accepted by Rob Talcott, President of Westside • Merchants Association. Mr. Talcott encouraged everyone to participate in the Western Days celebration, stating a portion of the proceeds • from pop sales will go to the Salvation Army. 4. RECOGNITION OF WASHINGTON MIDDLE SCHOOL CAREER EXPLORATION DAY Mayor Berndt paid recognition to a group of students in the audience today from Washington Middle School who had spent the morning at City Hall observing the operations of city government. 5. AUDIENCE PARTICIPATION . Ron Karcz, Impact Productions, played the taped public service announcements and two songs he had recorded to be used in the local war against drugs. Mr. Karcz stated he traveled to Nashville, Tennessee to make the recordings, which he is donating to the City, and he hopes they will be helpful in combating the City's drug problem. Mayor Berndt thanked Mr. Karcz for the recordings and his personal commitment to this project. • Mayor Berndt reported briefly on the Drug Coalition's activities, stating twenty -seven applications have been received for the position of the Director of the Drug Coalition. These will be narrowed down to approximately twelve applicants, and hopefully, a decision will be made by July 1st. She reported that a legislative coiunittee, headed by County Commissioner Jim Whiteside and Betty Ingham, has prepared an agenda and is forming four sub committees and have a plan of action already outlined. She stated the Neighborhood Against Drugs (NAD) is planning a day long workshop and asked Doug Pulse to inform the Council about this. Doug Pulse, founder and active member of NAD, urged the media to use the recording and public service announcements presented by Ron Karcz. He reported on activities by NAD, stating the marches are having a positive effect and the Council of Churches is planning a prayer meeting toward the end of this month with approximately one hundred ministers. Mr. Pulse stated the workshop to be held by NAD will be interfaced with the Drug Coalition's program and will be addressed primarily to the residents of the southeast area of the community. Sessions will be offered in English and Spanish in an attempt to reach the majority of the southeast residents. Mayor A/AD /1 363 JUNE 7,a•1988 Berndt thanked Mr. Pulse for his report and encouraged him to keep -up ,the, -,good work. Council member Carmichael added that she • has the new posters , to be distributed by the ; Governor's.Alliance . Against Drugs and „will make those available to; Mr. Pulse for • distribution., • 6. REPORT FROM CITY _COUNCIL COMMITTEE - REGARDING TRADE ,STIMULANT OPERATORS_.REQUEST FOR GAMBLING- TAX„REDUCTION•(SEE STAFF REPORT AND PROPOSED ORDINANCE) . . City Manager.: Zais - stated this is a, report ,from. staff.,, and the • committee that has . - :been working. several, ,months • .with; the Trade . Stimulant Operators •,(TSOs). •review-the, City's current taxing authority on,pulltabs, and punchboards, and at the-same time, review how that has impacted their industry .for several years. Zais stated this was a helpful process for the City as. well as the. Trade Stimulant Operators, in that the _City was able to, identify some ,better steps that „could be : taken on.collection and enforcement of delinquent,_,accounts, andthis, has, helped.. in. bringing.. those payments into _ 1ine. stated -this, :was . brought to,; City staff's attention .through.,efforts,of the:TSOs, City Legal..Department • and .City_Finance. • Department. He stated the:Couneil.has executed_a number of gambling tax repayment, agreements •that, will allow the business. owners . currently delinquent in ,paying their. taxes to bring them . current . and_ maintain a current; ; .status.. Mr. Zais,-.stated the Trade Stimulant. Operators had. requested. a reduction in the.state tax from 5% to 3.75% and after : a_ careful, review of the, situation, City staff agreed -to-consider a 1% reduction in tax for the LTrade. Stimulant • .Operators. Be indicated this. represents. of .approximately • •.$34,584 a •year, however, staff believes the ,efforts _gained in the aggressive enforcement and collections will.offset this, loss over a period, of time ., „Mr, Zais stated,_ if • the. , ordinance is passed today it,will•become:effective April 1st and will -allow the...retroactive , status, to take, effect-, •.on, those, payments for the second quarter. Council. member,Foy-,stated, there was an ordinance.,passed previously regarding, the the ISO'p . process,. and asked ; what. is _ the , status of that ordinance? Mr. Zais stated the committee did not discuss that ordinance. in terms -of any action that might be taken, however, that has been. a, useful , tool :in-connection with -the : .City's enforcement ,efforts., There -were ,no further questions from Council members and none of. the Trade Stimulant Operators wished.to.make any, comments. Ordinance No. .3102, having been read by, title, it was.MOVED, by Carmichael,. seconded by Sims,, that the ,ordinance be :,passed. Unanimously carried by roll,ca_ll vote.. Beauchamp abstaining due to • conflict of .interest. . . • ORDINANCE NO. 3102, AN ORDINANCE_relat to, licensesrand'business regulations; reducing punchboard and pulltab gambling taxes; and amending subsection., 5,49.020A .of the, City of Yakima,,..Municipal Code. . .7. SET. DATE: OF .COMBINED YAKIMA.,CITY COUNCIL AND YAKIMA:,COUNTY COMMISSIONERS PUBLIC HEARING FOR PROPOSED TEXT AMENDMENTS TO THE URBAN AREA ZONING ORDINANCE FOR JUNE 21, 1988 It was. MOVED by. Foy,, seconded by Buchanan, to set the .date of June 284.1988i. as thedate;,of joint public hearing-for the preview of the Urban -. _;Area - -: "Zoning ,Ordinance proposed - amendments,. _ Unanimously carried by voice vote .. . . 8. PRESENTATION OF FINANCING PLAN ,FOR ,WASTEWATER-. FACILITIES COMPREHENSIVE- ,CAPITAL IMPROVEMENTS PLAN FOR 1988. ,,1992 City Manager Zais commented that Assistant City Manager Stouder will make the presentation on this report today, however, many . staff- members ,have - been - involved in- .the 'preparation of ,the; draft • •Financing Plan for the,Mastewater Facilities .Comprehensive- Capital . Improvements . Plan.,, stated., this is, the next and,. most major piece in , terms ,of._ criticalness to the implementation , of, this program -. . Mr.- Stouder .stated this Financing. Plan represents the final major_phase: this...comprehensive,planning effort that has . been under way for, almost three. years. He stated this particular • A /AD /2 364 • JUNE 7, 1988 Financing Plan looks at. the sewer system of the City's utility system, and presents several short and long term options, with several long term proposals to -implement those items that the comprehensive planning process, the engineering 'studies, and the process of the last three years mandates. The accompanying report finds that rate increases are required to implement projects and programs represented in the Plan and to meet= mandated requirements set forth by the Federal Clean Water Act by the Department of Ecology. All of the recommended activities in the report and the Draft Sewer Plan are compelled by Federal and State mandates, maintenance of existing facilities, a result of reduction in State and Federal ••fuhding.for wastewater grants froth -90o to 50 %, prudent concern- for the "health and safety, of the community, and concern for, - perhaps those missed economic development opportunities, due to inadequate ,facilities in past. Staff has spent a considerable amount of time reviewing the "options presented today and "•there •may be- other options and ideas on how best to meet the needs' for the future and to maintain these facilities. We are now embarked oh- the first- public discussion of-these options, with- : additional public hearings set forth in the schedule before Council. He stated staff anticipates adoption of- the Financing Plan and•the Comprehensive Plan in late summer -or early fall. Mr. Stouder pointed out that the proposals before :Council are based on 100% local funding and there- are no-State or Federal: monies considered in any of these options. He .reminded Council that recently the- City has received assistance in the 'amount of a $940,000 'twenty year 1% loan from the State-Department Community Development Public Works Trust Fund and anticipate like assistance in future years. He added City staff has been working _with the • Department- of Ecology for the past several months attempting to secure centennial funding to-help offset some -of the costs. He - reiterated that this Financing -Plan is entirely upon funding by the citizens of Yakima and - the users of the • system. » •He stated Chris - Waarvick,• Denny -Covell-and Chuck Greenough are present to respond to Council's -inquiries regarding this report. Council member Beauchamp asked Mr. Stouder•to comment further on the statement that staff is not seeking any• federal or state assistance and the lack of availability of those•'funds. Mr. - Stouder- stated staff has been seeking Federal and State assistance, however, federal assistance to state and local governments has substantially declined from the 1970's.• He explained in the 1960's and 1970's there was 90 %•matching money available, but that has recently been reduced to a 50% local match,.and the regulations have become more stringent in that they are only considering the more critical cases for funding. Council'member Sims asked at what point does the City lose the option of the 50% match? Mr. Stouder explained at the point that • Congress changes the legislation and requires a lower or higher match. He stated that is really based on State and Federal laws. Council member Sims asked if the funds have to be acquired prior to the start of the project, or can the project: be started and the -City still be the recipient of a grant? Mr. Stouder stated the • 12 million dollar project, has- a variety of things that be staged, or scheduled, in such a way so. that the City will not be excluded for grant participation. He stated we need to be sure that we have full approval for any project so it -is a matter of scheduling. He stated we aren't real concerned about losing opportunities due to scheduling because we are working closely with DOE on that because it is an important concern. Council member Sims asked Mr. Stouder to give some background as to why we would be raising the surcharge from 50% to: 96 %. City Manager Zais stated -this has been a concern- of the City`Council for a number -of years. He stated there has-been a number of requests for a reassessment of the surcharge. -Mr.. Zais• stated a study, which had . a basis for a significant adjustment in the surcharge, was .completed two years ago and presented- to City- Council. He stated that has been reevaluated and that is where the 96% figure A /AD /3 365 JUNE 7i 1988 comes from Chuck Greenough stated the basic - background• for the surcharge is that the citizens of Yakima have essentially built a wastewater facility and are providing sewer service to citizens living outside - the City. The basis for the' surcharge isr'similar to what you would have ; with a private • utility or'• utility such as 'PP &L' or ''the gas' company. He stated' the - cost of operations is built in;• 'as •well: as depreciation and return on'f investment . Mr. - Greenough stated City residents pay a rate based. on: the_ actual cost • to keep the operation going; depreciation is not an out -of- pocket cost. He stated when you replace the facility land. you; have debt; - that is an out -of- pocket cost and that cash _ outflow' :is built into the rates that we charge our , customers. The outside surcharge uses " a utility - -basis of charging so that we actually take . the ;cost of • operations and depreciation is a part of thatas well as a return on investment. He explained further, as we add facilities to serve outside customers, those factors impact the amount of that surcharge. He stated the amount of flow coming from ` the e= ivarious areas' is :hold 'those costs- are allocated. for operation and maintenance in particular. So ;as 'we increase - ouri - flows from within the -City of Yakima that , would - , reduce' the percentage, therefore, their- surcharge might go down. He stated if a large plant were to ' be' built' outside the City limits- and increase the flows, then the 'percentage allocation-'of 'O &M would increase.• He 'stated ".that is - why you see a change 'in - that, and. -that is why the 102 % - figure of - two years ago = 'is now - ' down to '96%. He stated each time that is - reevaluated,: he expects : ther -e will be a change in the level of that surcharge Council member Barnett (expressed concern about the additional staff people,' and asked if - the expansion will require thirteen new staff people. ;- Mr-..Waarvick stated the report requests twelve -Inew staff people' - and without- that, he does not - see:. how- the work:: can be 'accomplished as ' 'set forth in the " State regulations.: City6 Manager Zais commented -when = •a - 'new/regulation , is added, it" impacts the work •load and staffing. He•'stated the • R.W.; Beck Study in 1978 `recommended `higher . staffing levels ' than the City - was willing to agree tb, arid' those studies' were driven by-' the Department of 'Ecology ,-and- the- Environmental' - Protection Agency. •He -said the City 'cut back on the staffing -recommendations, is ',still' running that -' plant--' 'today at , less than the recommended level of 1982 'staffing proposed -by DOE - and - EPA - to - do those= -=jobs 'effectively. He was supportive of the staffing recommended- in the report' by Mr. -' Council member Barnett inquired- about DOE and 'EPA regulations and asked if- -staff ' can identify the costs rdirectlyi related'- Ito those issues. He commented this would be helpful in selling this program to the public and would be "very =• helpful during -the'- public -hearings. -'Mr. Stouder stated Staff' can - prepare a more detailed ' •chart prior td the public hearings that will lists this :information. Mr. Waarvick • explained that &mei of the costs - are • caused by spin -offs of other DOE or EPA requirements. Council member Barnett -- stated - }according to Table 7, ; he can only identify 32: 8% of those costs- related to regulatory requirements,: but he is convinced the '- figure is much higher, and would like staff to identify these costs during• the''ptiblie - hearings." . - •. . :,- s:.,.-.- r; ...a_. Council member , Foy referred. to Table VI, - the Utility Rate Survey,. and commented- this - table is confusing to. him as he is not sure >'-how'''staff intended -'it 'to be` used. • He stated twelve - out of seventeen cities- -have- a. -lower rate than - the-" City 'of Yakima has proposed at $13.64 and ' if these - twelve= cites are more - efficient? He stated the" chart indicates they •- are r ;secondary : - treatment,- but yet =• their' charges range. from $4.92. to $26. 09. He stated he -feels the'' chart really doesn't- add to - what! the -City is ~trying" to illustrate: Mr. .Stouder stated staff will - clarify this by putting the information that is in the narrative -on the chart. Mr. `Waarvick -stated he can contact i some of the cities and -add some of ° the =information that indicates - 'their rates :are, going to be j modiffed and' there will be sane increases :' Mayor 'Berndt stated in her conversations with Yakima' -area mayors, and in talking with 'other Washington people- at --NLC, -- -she - 'learned -that the City' s A/AD /4 366 JUNE 7, 1988 ;increases _are going to : be much smaller than, the majority of other . Washington cities. _ Council member to Section_11, Short,Term Analysis, the last;. paragraph, and ;commented he would like to .see something . relating to DOE, EPA, or any other agency's commitment to this .project.in relationship to. grants. He stated, he relates this back to the proposed .or recommended option _which says that-in 1992 there.,will be .an. 8.7% increase if that option, that is recommended, is adopted. , He stated he thinks that is predicated on the basis of ; grants. He stated he would like to know before this project:is started,.what kind of,commitment DOE and EPA will make, and he believes., it is time, we_ ask them for a:.letter. ; Mr. ,Stouder . stated, staff requested a letter from .DOE, but has not, received a - .response.. , Council member, Barnett referred to Table V11,, the third page which ,is marked EE10,; the ,last item relating to, providing trunk mains to future..development- in ,the urban area for which has not been included.in the rate analysis, and asked if this implies that .no- new trunk mains will be made.in.the area until 1993, and that,- new,trunk..mains, will be developed only if the legal issues of the _ ,CCRC are. resolved? Mr. Waarvick -,. responded, .. "Yes. ", Council member Foy asked what effect that have on the impact of outside utility agreements? Mr. , Waarvick _stated currently there is ; a- lot of .trunk, sewer in that. area that_ is not being_,,utilized and staff is recommending no extensions of trunk sewers where there are no residences, or very few homes. Council member Foy stated between now and. 1994 the development : of the urban area could change. and asked what will happen if that occurs and there is no trunk ? Mr. Waarvick stated that could happen, and if so, it will .be and ,a decision made, at that,.time. 'Council member Barnett,asked Mr..-Waarvick to relate this to,the regional'concept and the City's.legal obligation to,provide sewer service within the,. - region,. Mr. Stouder stated Council, member. Foy's quest on. ;is how much additional capacity does the City build ..in and who, pays for that excess; capacity ?, Or do we : wait until; that time and .growth proceeds beyond our projections and then . determine how the new capacity is paid : for? Mr. Stouder,stated the general .philosophy is that those residents requesting new sewer service should paying , • .for those : lines.,He.explained that Mr. Barnett's, question is more of, an issue.•of what we are mandated to .do, by law. Mr. Stouder stated the City has to serve everyone in the Urban.Area, -and the City is doing that, however, staff has a responsibility to try to guide, the growth : and development of the Urban Area and phase it so the City.isn'•t faced with substantial one time costs. Council.. member Foy, referred to Table 9 -C, which'lists the single family.: outside. the City 1988 current - charges,, and asked,.staff to explain this figure.to,him..Chuck Greenough : explained the process _used to arrive at this figure, stating it is. correct. Council member Barnett referred to Table, -9 -A,. and asked in determining ..the. expenses for these f igures, . how did staff, handle the; in -lieu tax . issue? Mr. Waarvick, stated the in -lieu tax is calculated on the near gross revenues,which is currently 12% of the near gross revenues right off the top. Council member Barnett asked if it is appropriate for the ,in -lieu tax to be tacked on to these multi- million _,dollar, capital, needs , expenditures ?. He stated it seems to him it is kind of a for the general_. fund. City Manager Zais stated we have not made any calculation based on a. different tax rate as he has identified • here,,so the General Fund,,Parks_, which are the beneficiaries of the in -lieu tax,.are still the recipients of the tax rate. He . stated. other General Fund Revenues have' leveled ,off in most categories, most notably the..property tax reaching the,limit under the two statutory- limits in effect. The,City.is looking, and will ..be .lookingfor other alternative funding,, not necessarily this source, but _other ,sources . to help replace . or offset that significant gap in.the growth of Property Tax and the General Fund, so- that. is just one facet. to this whole question. Council member Barnett,stated -it ;appears. to him that.we are putting in 26 million A/AD /5 • 367 JUNE 7; 1988 . dollars worth of expenditures-which are predominantly -State and - _Federal mandates once those figures are confirmed. He: stated he is not convinced all of these increases should be. going..into the General Fund and should be applied .to the capital improvements and hopefully keep those rate increases down a percent to demonstrate to the public that we are putting _ than money - .into the projects . rather.that•:using the General. Fund as a tbeneficiary. Stouder stated staff, does not think-it is appropriate not to include that since • it is a current tax. Mr. - Stouder stated, as an alternative, staff could take another look at it . and :run those qlumbets without that surcharge if Council would prefer. Mr. Barnett indicated he does not feel this is necessary at this time.': • II/ . ' There being -.no further questions fra t Council at this -time, Mayor ..Berndt - commended- staff on their media performance yesterday, stating they did very_good job of the situation and as • . -- a whole; the ,word isc.getting out-as to what the-City is doing, . She stated the press_coverage was a good idea. - - Referring to the schedule for the public meetings listed on page 3, Mr Stouder stated; staff. needs guidance on setting'the meetings. Mr. Zais stated the June 28th meeting will conflict with the . Association- of Washington Cities ; Conference and Council has . traditionally cancelled this meeting due to attendance at AWC. It was the: general ;.consensus of the Counci -1 to. cancel, the- =June 28th meeting,. • Mayor Berndt stated there will be two public hearings on the Comprehensive Plans, however, Mr. Leonard Sherry had asked to speak _...today..,:She suggested that. he . speak.. prior to .the Council making a decision on the meeting, schedule. --Mr. Leonard Sherry,:-204 South 69th Avenue, stated ,he lives in the County by just a few blocks, and even though he- is in favor : of annexing', but he thinks if the City applies the 96% surcharge, it will discourage a lot of citizens from annexing. He stated it took four years to get the sewer- into *�his_ area "because -the people didn't want to be annexed into the City. 'Mr:..Sherry:- stated that Mr. Stouder made the statement that the City of Yakima built the Sewer Treatment Plant and made it sound like everyone in the County•. contributed nothing He stated he lived in the City._ until_,' just_, recently and has paid :taxes on that plant, like many other citizens. who now • reside in the County. He stated when his area got the sewer in, . through a Local Improvement District, they had to pay a Capital Cost Recovery.Chargerto:pay for'the trunk'lines_ that were installed in the County so the residents in his area could connect to City sewer. He said they all had to pay three years back interest, and as he understands it, each year there will be one more year of interest added. He asked if that is correct? Mr. Vanek stated that is an assessment on the CCRC calculation and Mr. Sherry is . correct. Mr. Sherry stated every month they pay a 50% surcharge and now they want to raise that to 96 %, and he feels that is excessive. He stated he feels the City Council should take this • into consideration when they try to finance a lot of this on the backs of the County residents. Council member Barnett interjected some of these costs are a result of State and Federal mandates because the plant currently does not meet government requirements that have come about since the Sewer Treatment Plant was built. Mayor Berndt thanked Mr. Sherry for his comments and stated he will be kept informed of these costs, as well . as the dates of the public hearings. Council member Sims referred to table 9 -C and the incident that was just discussed, and asked if they were annexed into the City would their current rate of $13.14 be reduced to $10.16 in 1989? Mr. Waarvick stated that is correct, if you are in the City you do not pay the surcharge. - Chris Waarvick commented on Council member Beauchamp's and Barnett's' concerns about the construction of a new facility or improvements to the current structure, stating he attempted to keep these costs to a minimum. He stated trying to handle as much work as they do now is difficult with the staff he currently has A/AD/6 - 368 JUNE 7, 1988 ._ and _he knows it is . impossible' to handle any addlitional..work without . _addit-ional. staff. ..Council. member Beauchamp__ stated. it_ just seems 1 _ the square foot. construction cost of. , $80•.00 is excessive. Some of . .the ,other Council. members were in agreement. J. . . Mayor Berndt,.stated_ Council needs to establish the.dates for the two :.public hearings. It'.was .MOVED by Sims.,.. seconded byr =Buchanan, , , . to. ;accept .the-, report for review, and discussion_ and to :.set. •.the dates .. . of, the public _hearings for July. 5th at) 2:00 p.m. and :July 12th at .7:00 p.m. Unanimously carried. by voice vote.. . _ 9. OTHER BUSINESS . . -_ . • -. . .,Director of _.Community and Economic Development Glenn-Rice reported on , .the. work = •,being. _done _ .by Pacific Power: &:.Light - to ,.change the ,transformers,.stating'the appropriate staff. and individuals will be . here to .assist, with. this. effort on .Sunday. _Council member Foy asked if Council.. will be given la' _report. on all of the '-charges for this and Mr. Zais stated that can be provided. _ 10. .. EXECUTIVE .SESSION. REGARDING.PROSPECrIVE. LITIGATION . • __ J. ., . :L.It MOVED. by Sims, seconded_by Buchanan, to movei.into Executive Session.., for approximately... twenty. minutes for' .the. purpose of discussing prospective and : pending- litigation; -followed by immediate adjournment. Unanimously carried by voice .vote. 11. ADJOURNMENT. _ _ _ . .. _ - _ .Following. the completion of the Executive Session,: the meeting was .adjourned at • the ,hour of 4:12 P.M. READ AND CERTIFIED ACCURATE. BY '� , , i , L.. � gj /0 WL.•MEMB • � . , of •E. L-- 'I Oqt f ATTEST: _ , COUNCIL MEMBER. .. _, DATE • CITY:CLERK MAYOR . . e 1 . ; Minutes prepared by. Deputy. City Clerk Barbara J. Toney;_:'.CMC. ,J._r`. . �: • . . . . . _ ., 1 1 . . • . . .. . . , _ . • A/AD /7